Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1897-12-25
SECRETARY CAGES PLAN
PRESENTED OCONGRESS
His Method Of Refunding the In
~debtednes; of the United
States Outlined.
IT IS The PRESIDENTS PLAN
Bill Permits q More Extended DIR
cuiation and Organization
Of Banks with Small
Capital.

Washington. Dec. fS.-Secretafy
Cages financial bill has been submit
ted to the house. 1t is entitled: "A
Bill to Provide for Refunding the Ma
tional Debt, Establishing a Redemp-
ton Fund, and a Division of the Issue
and Redemption I'm the Treasury De-
partment of the United States, and TO
Modify Existing Laws Respecting Ma
tional Banks"
Creates n New Division.
IL provides for the establishment as
a part OF the Office of treasurer, n divi.
sion of issue and redemption, to which
may be assigned under regulations
approved by the secretary of the trea-
sury all records, accounts relating to
the issue and redemption and exchange
Of the various classes OF United States
paper money. There shall be transfer
red from the general fund TO its books
as n redemption fund a hnndl ed and
twenty-five million dollars in gold
coin and bullion and enough silver coin
and bullion TO equal the silver certih-
Gates and the treasury noes issued
under the act Of July IA, 1890, out
standing when the act goes into effect.
Thereafter these sums in gold and
silver shall be increased and dimin-
ished only in accordance with the
terms of this act.
Redeem Currency.
All United States notes, treasury
notes Of 1890 and silver certificates pre-
sented shall be redeemed from this
fund, and when redeemed shall consti-
tute a part of said fund and shall not
be withdrawn nor disbursed except In
exchange for the coin in which they
were originally redeemed; but the
secretary Of the treasury may author
i've the exchange of any funds in this
division for any funds in the general
fund of the treasury, provided there
must never be outstanding more trel-
sury notes and silver certifca,e s than
there is silver bullion and standard
dollars in the treasury.
Refunding bonds.
The secretary of the trasury is au-
thorized to receive 8 per cent of the
bonds of 1904 and 4 per cent consols of
1907 and issue in exchange therefore
1-2 per cent bonds, redcema lie at the
pleasure Of the United States after ten
years, payable. principal and interest
in gold and be exempt from all taxa.
lion. state, municipal or local. Provii-
I'd the value of the bonds redeemed be
reckoned in ascertaining the value ut
! 1-2 per cent, and the bonds issued
Be issued at no less than par.
Bonds for Circulation.
These and any other United States
bonds to be receivable by the treasury
as a security for national bank circu-
lation to the par value thereon. Any
aational bank whose deposit of bonds
is less than its capital may deposit the
remainder in United States poies,
treasury notes or silver &c r~tifi>sscs as
A security equal to the amouii OK
own notes. But not over S200S1o 900
Of United States notes, treasury notcs
and silver certificates shall he issue"
he ssereiagg 81 Ihs sreasnprlsr s.a.
s...aT STss:.as.- :. a.s. =. a.nosis.a ,s ne
md the value TO be never below the
par of United States paper money so
released and TO become a part of the
redemption fund.
The secretary is authorized to ey-
change treasury notes and silver GER
,~iticates for United States notes, and
he amount of bonds issued under this
section is limited to $500, 900, 900.
Deposit by Ranks.
II - luItutI pIONlueu tndt any ma
tional bank may deposit United States
bonds or United States paper money
10 the amount Of not less than so per
cent of it's capital against which may
then issue n like amount of it's w
notes and in addition. provided the to-
tai does not exceed its capital, notes
Ut the amount Of 25 per cen OF such
deposits, such additional notes TO be
the first lien on the remaining assets
Of the bank. Should the bank fail,
THESE notes to be redeemed by the
treasurer of the United States, the
same as other national bank notes.
To secure the United States against
loss in such contingency the bill pro-
rides an annual tax of 2 per cent OIL
such circulation in addition to the
one-half of | per cent tax on circula-
ton to he invested in United States
bonds and held as "A safety fund.
National banks TO be required to
keep in the United States treasury in
lawful money 10 per cent of it's circu-
alton i'm lieu of the present 5 per cent
redemption fund.
The bill fofbids the issue of national
banks notes of less denomination than
$40 and directs the cancellation of all
smaller denominations outstanding as
Fast as received by the treasury.
The comptroller is empowered to
designate the subtreasuries at which
the government will redeem the ma
tional bank notes on presentation.
The bill allows the organization of
national banks with a capital of $685.
300 in towns of not over 1000 inhabi-
tants, In the discretion of the secre-