The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-17
SECRETARY CAGES PLAN.
HIs CURRENCY REFORM BILL BE
F0RE THE HOUSE COMMITTEE.

49,
toveruunenta Demand Obiirnuors, and
Makes Changes In the National Banking Act.
WASHINGTON. Dec. 18.-socrotary Cages bill
70 provide for tho refunding OF the national
debt, for establishing q redemption fund and q
division Of issue and redemption in the Treas
uty OF tho United States. and to modify existing
LAWS respecting national banks was laid before
tho Committee on Banking and Currency by tho
Secretary this morning. 1t roads:
BE Il enacted, DC. That there no established
in the Treasury Department the Division OF
Issue and Redemption, to which shall DO as
signed oil records and accounts relating TO
tho issue, redemption, and exchange. as herein
aftor provided, OF the several classes Of United
States paper. money. There shall DO trans
ferred from the general fund in tho Treasury Of
tho United States for q redemption fund tn
sum Of 1925, 100000 in United States gold coin
and bullion, and such further sums Of standard
silver dollars and silver bullion purchased
under tho act Of Congress approved July II.
1890, as shall equal tho silver certificates and
Treasury notes of 1890 outstanding on tho date
when this act shall take effect; and thereafter
the gold and silver coins and bullion hereby
transferred from the general fund in the Treas
ury, as herein provided. shall DO Increased or
diminished. as the case may DO, in accordance
with the provisions OF this act, and In no other
way.
SEC. 2. That all United States notes. Treas
ury notes Of 1890. and silver certificates pre-
scented for redemption shall be redeemed from
the redemption fund herein provided. In accord
anco with tho terms of existing law; but the
notes and certificates SO redeemed shall be held
in and constitute q part of said fund, and shall
no. be withdrawn from said fund nor discussed,
except in exchange for an equivalent amount of
coin In which said notes or certificates were re-
deemed. But to enable the Secretary Of the
Treasury moro thoroughly to carry out the pro-
visions contained in this act, he is hereby au-
thorized to exchange any Of the funds in tho
Division Of Issue and Redemption for any old
funds which may be in the general fund OF tho
Treasury Department.; provided, that nothing
IN this act shall be construed as repeating that
Which provides that there shall be OUTSTANDING:
ct any time no more and no less Of the Treasury
notes authorized by said act than silver bullion
and standard silver dollars coined therefrom
then held in the Treasury purchased with said
SEC. 3. That the Secretary Of the Treasury be
and is hereby authorized to receive at the Treas.
SSry any Of the outstanding bonds known as tho
centum bonds Of 1907, and to issue in exchange
therefor coupon or registered bonds of the
multiple, OF that sum. bearing interest at the
rate Of 90 per centum Per annHm. payable semi.
United States after ten years from tho date Of
their issue; and tho bonds hereby authorized
States gold coin Of the present standard value.
and shall be exempt from all taxation by or
sidod, that none Of the outstanding Bonds shall
DO received at q valuation greater than their
D Dse,sS S wSr shn to y aSs tSSaa. income tSs Ps, St 2 hsr6 psT
authorized shall be issued at not less than par.
SEC: 4. That the bonds suthorized by this act.
be deposited with the Treasury Of the United
States as security for the circulating notes Of
banking association which may deposit the
bonds herein authorized to be deposited as
Titled to receive from tho Comptroller Of the
Currency and to issue such notes to an amount
that the aggregate amount Of bonds deposited BY
any national banking association under any law
ana pr 1Ni edcs fsrth sne t S%on Nothing +, l hsre siap aoni
the provisions Of section 5.167 and section 5.I7i
Of the Re, Used Statutes, authorizing the Comp.
troller of the Currency to require additional de-
posit of bonds or Of lawful money in case the
circulating notes shall fall below. The par vaiuo
Of the circulating notes outstanding. for which
'I SEC oP 8. Th lats any ny national ba N ssfieer association
whose deposit of bonds is less than the amount
9 81 Il tho '" Gnited %a sta aep0i unni ten Sta States ess1 notes.
Treasury notes OF 1890, and silver certificates.
troiler Of the Currency and to issue an equal
amount OF ITS circulating baads notes. notes ent the aggre-
deposited by any national banking association
shall not exceed the amount of its capital: pro-
NiuOu lhot Nv toboA v Vi bntO
Gates deposited with the treasurer Of the United
exceed the sum Of 5000 o 900.
SEC. 6. That the Secretary of tho Treasury
bonds Of the same class and character as those
authorized in the third section of this act, and
the United States for equal amounts Of the
United States notes, Treasury notes of 1890,
and, silver certificates deposited by national
banking associations. and the bonds 80 issued
and substituted shall be charged TO the respec-
tive national banking associations and be ac-
than par. as shall represent the market value Of
such bonds; and the United States notes, Treas
ieased. as herein provided. shall become a part
Of the general redemption fund; and the Secre-
change any of said Treasury notes of 1890 and
said silver certificates for 9 like amount of United
i s.sssSi n n9defi R ths a%tSo shSt Of ofo this hho SECTION 10 o shaii
not exceed the sum Of 5000. 900. 900.
SEC: 2; When slr or any nation sS1 Sap hsy now de e1istIiass
such United States bonds. United States notes.
Treasury notes OF 1890; or silver certificates. to
capital. It shall bo entitled to receive from the
Comptroller Of the Currency. and to issue. ma.
osntum thus provided, to tho amount Of IS por
centum OF such deposits; but the circulation is-
capital stock and tho additional notes
&c 1sfSf but snail shall c a4s SSi a Srss lien U Upon ar al
such notes: Upon the failure OF any association
TO redeem its circulating notes above provided,
whether the same are issued against deposited
security or against general assets, the same
shall be promptly redeemed by the Treasurer OF
the United States. To secure the United States
against any loss arising from. its guarantee to
pay ana redeem such additional circulating
notes. It shall be the duty Of the Comptroller OF
the Currency to levy upon and collect from
avery national banking association issuing such
unsecured circulation a tax at the rate of 2 per
eentum per annum on such unsecured circula'
tion, which said tax of 2 per centum per
apnum shall be paid to the Treasurer
of the United States in equal scmi.annual pay,
ments In January and July of each year. and
when so collected 1t shall constitute q safety
fund, out Of which the United States shall be
reimbursed for any redemption of said unse
cured circulation IL may make as herein pro
yided. The safety fund thus created shall bt
invested by the Secretary of the United Statci
in such Government bonds as he may consider
advisable. Said tax OF 2 per centum per annun
shall be in addition to tho tax OF one.half OF
per centum per annum on circulating note!
hereinafter authorized.
SEC. 8. That each national banking associa
tion shall deposit and maintain in the Treasury o