The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1898-01-07
standing shan cease to be legal tender


at shall be the duty of the secretary
OF the treasury to maintain the gold
reserve in the division of issue and re-
demption at such sum as shall secure
the certain and immediate redemption
Of all notes and silver dollars present
ed, and the preservation of public con-
fidence; and for this purpose he shall
from time to time, as needed, transfer
from the general fund of the treasury
to the division of issue and redemption
any surplus revenue not otherwise ap-
propriated; and in addition thereto he
shall be authorized to issue and sell,
whenever it is in his judgment neces-
sary for that purpose, bonds OF the
United States bearing interest not eX-
ceeding 3 per cent, running twenty
years, but redeemable in gold coin, at
the option Of the United States, after
one year; and the proceeds Of all such
sales shall be paid into the division of
issue ard redemption for the purposes
aforesaid.
ITO provide for any temporary de-
flciency which may at any time exist
in the fiscal department of the treas
ury of the United States the secretary
of the treasury shall be authorized, at
his discretion, to issue certificates Of
indebtedness of the United States, pay
able in from one to five years after
their date, to the bearer, of the de-
nomination of $50 or multiples there
OF, with interest at the rate not to
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THE total issues of any national
bank shall not exceed the amount of
its paid-up and unimpaired capital,
exclusive of so much thereof as is in
vested in real estate. All such notes
shall be Of uniform design and quail
ity, and shall be made a first lien up
on all assets of the issuing bank, in
Guiding the personal liability of its
stockholders. No such notes shall be
of less denomination than SO.
up to an amount equal to 20 per
cent OF the capital stock Of the bank
the whole Of its capital being unim-
paired, the notes issued by it shall not
exceed the value of United States
bonds, deposited with the treasurer of
the United States. The additional
notes authorized may be issued with
out further deposit of bonds.
Beginning five years after the pas
sage of the proposed act, the amount
of bonds required to be deposited be-
fore issuing notes in excess thereof
shall be reduced each year by one
fifth of the 20 per cent of capital here
in provided for; and thereafter any
bank may at any time withdraw any
bonds deposited in excess of the re-
quirements thereof.
Every national bank shall pay a
tax at the rate of per cent per annum,
payable monthly upon the amount of
its notes outstanding in excess of 60
per cent and not in excess of so per
cent of its capital, and a tax at the
rate Of C per cent per annum, payable
monthly, upon the amount of its notes
outstanding in excess Of so per cent OF
its capital.
Provision is made for payment by
the banks to make guaranty fund.
Upon the failure of any bank to
redeem its notes they shall be paid
from the said guaranty fund, and
forthwith proceedings shall be taken
to collect from the assets Of the bank
and from the stockholders thereof, If
necessary, a sum sufficient to repay
said guaranty fund the amount thereof
that shall have been used to redeem
said notes; and also such further sum
as shall be adequate to the redemp-
ton Of all the unpaid notes of said
bank outstanding.
IF the said guaranty fund of per
cent of all the notes outstanding shall
become impaired by reason of pay
ments made to redeem said notes as
herein provided, the comptroller Of the
currency shall make an assessment up
on all the banks, in proportion to their
notes then outstanding, sufficient to
make said fund equal to 5 per cent Of
said outstanding notes.
THE present system of national
bank note redemption should be con-
tinued, with a constantly maintained
redemption fund of per cent in gold
coin, and with power conferred on the
comptroller of the currency, with the
approval OF the secretary of the treas
ury, to establish additional redemp-
ton agencies at any or all of the sub
treasures of the United States, as he
may determine.
National banks shall hold reserves
in lawful money against their deposits
OF not less than % per cent and 10 per
cent for the respective classes as now
provided by law. at least one-fourth of
which reserve shall be in coin and held
in the vaults of the bank. Neither the
5 per cent redemption fund nor the
per cent guaranty fund shall be count
ed as part of the reserve required. No
bank shall count or report any of its
own notes as a part of its cash or cash
assets on hand.
Permit the organization of nation
al banks with capital stock of s25, 900
in places of 1000 population or less.
provision should be made whereby
branch banks may be established with
the consent of the comptroller of the
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