The Wichita daily eagle., 1897-12-17

of money dggregatlng lO per cent OF IL
aggregate circulation, such sum to be ii
lieu of the per centum fund reduction
! now required by section 3 Of the act ap
proved June 20. 1874. to be maintainet
and TO be subject 10 all the provisions O
existing law respecting said redemption
fund not inconsistent with the provision:
] OF this act And in consideration OF tbs
deposit of bonds, United States notes
1 treasury notes OF 1890 and silver ceftifi
J Gates and the tax Of per centum per an
I mum on the unsecured circulating note:
] Of national banking associations and o.
I the deposi: of lawful money provided il
4 this section, the faith of the United
I States is hereby pledged to the redemp.
tion in lawful money Of the United
States OF all the circula ting notes of said
rarionai banking associations
Section 9-That the comptroller of the
currency shall not issue to any national
banking association and after the date
when this act shall take effect any OF the
circulating notes OF such association of
less denomination than ten dollars; and
whenever any circulating notes Of less
| denomination than ten dollars snall be
redeemed or received into the treasury
of the United States they shall be can
| celled and destroyed and other notes of
| lawful denomina tons shall be issued in
their place.
| Section 10-That on and after the date
when this act shall take effect the circu-
| lation of the national banking associa-
tions shall be redeemed at the office of
the United States assistant treasurer in
the city Of New York and also at .uch
other sub-treasury offices as may be
designated by the comptroller OF the
currency with the approval of the sec
retary of the treasury, and the circulat-
ing notes of which national banking as
sociations SO redeemed shall be charged
to the 10 per centum redemption of the
association under such rules as may be
p, escrfbed by the controller Of the cur
rency With the approval of the secretary
OF the treasury.
Section 11-Tunat in lieu of all existing
taxes every national banking associa-
ton Issuing notes shall pay to the treas
urer of the United States in the months
Of January and July Of each year a tax
Of one-fourth of l per centum for each
half year upon the average amount of
its notes in circulation: Provided, how
ever, that during all the period of time
intervening between the deposit of
United States notes, treasury notes and
silver, and the substitution of bonds by
the secretary of the treasury az in this
act provided, the circula ting notes speci-
fically issued therefor and secured by
said United States notes, treasury notes
or United States silver certificates, shall
be exempt from taxation under the pro-
visions of this act.
Section 12-Section SIPS of the revised
statutes shah be amended to read as
follows: No association shall be organ
lied with a less capital than 100000. ex-
cept that banks with a capital of not
less than $4,000 may, with the approval
OF the secretary of the treasury be or
ganized in any place. the population of
which does not exceed 5000 inhabitants,
and except that the banks with a capi-
tai Of not less than $4,000 may, with the
approval of the secretary of the treas
ury, be organized in any place, the pop
ul8tion OF which does not exceed 1000
Inhabitants. No association shall be
authorized in a city the population Of
wflich exceeds $4,000 persons with less
capital than 100000.
This act shall. take effect on and after
the day of -, eighteen hundred
and ninety; and all acts and parts
of acts inconsistent with the provisions
of this act are hereby repealed.
of ,nIl
On section of the bill. In answer TO
inquiries he said its general purposes
were the same as set forth by him.
AIR. Gage said the only purpose of the
bond section was to refund outstanding
bonds for low interest bonds payable in
gold. This would not reduce the gross
amount of the debt, but it would make
a saving on interest which the secretary
calculated at s100OO,OOO annually. At
present the government paid higher
rates on some of its bond issues He
thought it possible that these could be |
taken UP in time at a rate OF interest |
even below per cent, but this proposed |
2 1-2 per cent rate was at least .tep |
toward reducing the interest charge.
Mr.. Gage said he had excluded from |
his refunding plan the bonds issued in |
1895, although in mis- recommendation to |
congress these bonds were erroneously |
included. He said he preferred to let !
these bonds alone, as question mad |
been raised at the time Of their issue as !
10 their payment in gold and he did not
wish to enter upon that question. The |
oill would exclude all the bonds issued |
under the Cleveland administration.
Mr.. Gage explained in detail the plan
If issuing national bank notes for Unit
"a States notes, treasury notes and sill
yer certificates and the covering the lat
ter demand notes for Fefunding notes.
He said the purpose OF these was to ac-
,umulate SEQ. 100000 of the demand OBJ
igatiOns. placing them aside wnere they
would relieve 10 a great extent the de-
nands of the treasury. Il was essential,
he felt. that these demand obligations
should be materially reduced. Al the
same time ne did not consider 1T safe
o contract the currency by $500, 600 600
It one stroke and for ttat reason ne lad
provided for issues OF national bank
lotes to fill the vacuum.
Mr. Brossius asked him IL the parity
y the metals could be maintained IL
ne demand obligations were withdrawn
rom circulation and accumulated in the
NJ. Gage said there would be
ample demand notes outstanding beyond
he $500. 600.
M Brossius insisted that IL would i'm
,ose on the banks anf not on the gov
-rnment the obligation II maintain par
ty. The secretary dissented from this.
Iaxi1g tho 1a,,a-5 alrsra-;D-,S, Iarf ,,r,- 1