The times. [volume] (Richmond, Va.) 1890-1903, 1897-12-08

| should be passed 20 the same account.
| Further. that the sum OF $500, 900 900 in the
| legal tender notes OF the United States
| known as greenbacks be collected as here
| matter described. and deposited in the
| said Issue and Redemption Division, TO be
| disbursed therefrom only upon the re-
| coipt In exchange therefor Of an equiva-
| lent amount OF gold coin. Such gold,
| when so secured. 10 be held In said di-
vision as part OF the general redemption
| fund.
Second. I recommend that provision
| be made for the issue OF Tefuding loan
bonds. payable after ten years at the
pleasure OF the Government. such bonds
| TO bear interest at the rate Of IL per
cent. per annum, payable, principal ana
| interest. in gold coin: and that the Secre-
| tary of the Treasury be authorized 10
issue such bonds and receive in payment
| therefor, with an equitable allowance for
the difference In interest any part or all
OF the outstanding loans of the United
states which mature by their terms Of
payment in the years 1901, 1907 and 1925.
He also recommends the following
changes in the national bank law:
First. Permit national banks 10 be or
l.ganized with "A minimum capital of S25.-
600 in any place having a population OF
1000 inhabitants or less.
on circulating notes secured by deposit
Of bonds 10 one half Of per centum per
annum.
Third Permit banks now organized
or hereafter organized to issue circulating
notes TO the par value of the refundng
bonds hereinbefcre suggested. when de-
posted by them with the Treasurer Of the
United States and, further. allow such
banks as shall avail themselves Of the
g.. ~ Wit
the treasury Of the United States green
backs. treasury notes. or silver certif-
Gates to a total amount of $500. 900 900,
against which there shall at once be
issued 10 them by the Comptroller Of the
Currency national bank notes TO an
equal amount. 1T being further provided
that from time TO time. at his convenience.
the Secretary OF the Treasury shall sub
stiiute for the ereenbacks. treasury notes
and silver certificates so deposited 10
secure circulation. bonds of the same
class and character as the refunding
bonds first named TO the amount Of 500
0O0.0O such bonds to be charCeable 20 said
banks and by them accounted for a such
price mot less than par) as the market
quotations may indicate to be their fair
naIle, value. During the period Of time
intervening between the deposit Of green
back treasury notes and silver ccftih-
by the Secretary Of the Treasury the cir
culating notes specifically issued therefore
shall be exempt from taxation. Upon
such substitution Of bonds the funds re-
leased thereby shall at once be trans
ferred by the Secretary Of the Treasury
TO the issue and redemption division
Fourth. After said banks have depos-
tied such bonds, greenbacks. treasury
notes. or silver certificates 10 the amount
OF 80 per cent. Of their capital they shall
be permitted to issue bank notes I'm addi-
tion 10 the 30 per cent. thus provided. 10
the extent Of % per cent Of such deposit
which said 2j per cent. may be unsecured
by any direct pledge Of security. but is
sued against the assets Of the bank.
Fifth Extend the guaranty Of pay
ment by the government to all circulating
notes Of the bank whether issued against
deposited security or against assets.
Sixth. To secure the government
against loss. IL any. attaching to its guar
anty a tax Of per cent per annum on
unsecured circulation shall be levied to
create safety fund which fund shall be
invested by the Secretary Of the Treasury
and the Controller OF the Currency in gov
eminent bonds. I'm addition 10 such funds
the government shall be further protected
by having "A first lien upon All assets in
case of failure of the issuing bank
Seventh. All notes shall be redeemed
I'm the city OF New York at the sub-treas-
urv, and a such other sub-treasury as
may be designated by the Controller Of
the Currency with tho approval Of the
Secretary of the Treasury. The control
Of such redemption shall be under the
direction of the Controller of the Cur
rency and made from a redemption fund
of 10 per cent. to he provided and main
tained by the banks.
Eighth. Restrict the issue NJ national
bank notes to the denomination Of SO
and upward.