The times. [volume] (Richmond, Va.) 1890-1903, 1898-01-07
The ENTRY OF STATE BANKS
Into the System Proposed in the New
Curf,1Cy Bill
THEY MAY BECOME NATIONAL BANKS.
Banking Features of the Law More blap-
orate-How Ir Is Proposed to Strength
en- the Guaranty Fund-Terms OF
This Section More Explicit.

i've ONeisNecli OF ihui"i"'
i'm the House to-day comprehensive bill
for carryisg out the plan OF the none
tary commission for the reform OF the
currency.
The bill was referred by Speaker Reed
to the Committee on Banking and Cur
rency and Chairman walker has, ar
ranged TO give early hearings to Senator
Edmunds, the chairman Of the commis-
sion. and perhaps to otLcr members. The
bill contains forty-soycs sections and en-
bodies in legislative form every feature
Of the recommendations of the oommis-
sion. The earlier portions relating 10 the
maintenance of the gold standard. the
creation Of the bureau of issue and re-
demption and the gradual retirement Of
the legal tender notes, are embodied IN
the bill i'm almost the samC language as
IN the report.
BANK FEATURES.
The banking features are more elab-
oIdte and carefully define the character
of the guaranty fund for the protection
Of notes issued upon assets ard the man
nor of Tedecming tine notes of failed
banks. The section dealing with the
guaranty fund Is as follows:
'Socti)1 20-That every National Bank
ing Association shall az all times keep
and have ON deposit with the division Of
issue and redemption for the purpose
h reinaftcr specified a. sum I'm gold coin
equal 10 five per centum OF its Outstand-
Ing circulation. The amounts as kept on
deposit snail constitute n fund 10 be
known as the bank note guaranty fund
which fund shall lc held for the following
purposes and for no other. namely:
whenever the Comptroller OF the Cur
rency shall have become satisfied by the
protest of the waiver and admission spe-
cihet IN section 52-6. or hy the report pro-
Niued Tor in section 52zl Of the revised
statutes Of the United states. that any
association has refused 10 pav its en-.
cuidiins notes on demand I'm lawful
money, he shall direct the redamption
ol such notes from the bank note guar
amy iund aforesaid ani such notes shall
'neicun0n be so Tedeemcd
are The failure Of any national b,rt,
ing association TO redeem ifs potce si.-',t
nave been thus ascertained tbo bo-4l
deposited with the Treasurer of tbo
United states shah be sold. as provided
oy law and the proceeds of such sales
shall b. paid into the bank note guaranty
iund. The Comptroller of the Currency
shall forthwith collect, for the benefit Of.
'he iund, from the assets of the bank.
ana from stockholders thGe0f according
10 their liability as declared bv the act
such sum. as with the banks balance i'm
bank note guaranty fund. shall equal the
amount OF It's circulating notes outstand-
Ing And for this purpose the United
Safes shall. on behalf of the bank note
guaranty. have a paramount lien upon all
the assets Of the ssOciation, and such
funds shall be made good ont of such as
sets i'm preference 10 any and all other
claims whatsoever except the necessary
COSTS and expenses Of administering the
same
WHEN TO PAY.
The next section of the bin provides
that whenever the Comptroller Of The
Currency shall ascertain what the den-
cheney, il any, exists between the aggrc-
gate collections fer the benefit OF the
bank note security fund. in the case of
any failed bank, and the amount of its
outstanding notes redeemed and 20 be re-
deem q fr IN the said fund, ne snaI assess
such deficiency upon all the national
banks I'm proportion to their notes OUT
standing a the time Of the failure of
such bank
tax upon the circulation about the au-
thorized limit is as follows:
Section 2O.-That every national bank
ing association shall pay on or before the
last day OF every month TO the division
Of issue and redemption. a duty imposed
at the rate OF two per ccutum per annum
upon the average daily amount of It's cir
culating notes outstanding in excess OF
sixty per cen;um of It's capital stock. and
not IN excess of eighty per centum of
such capital stock. and a duty imposed
at the rate or six per ccntum Ier aunum
upon the average daily amount Of such
notes outstanding i'm excess OF eighty per
ccntum OF its capital stock Circulating
notes of any national banking associd-
ton shall DO redeemed and held 10 be
outstanding whenever thew shall have
been supplied by the Comptroller of the
Currency 10 such association in blank.
registered and countersigned according 10
law. ana shall have not been returned to
the Comptroller for cancellation or cover
cd hy an equal amount of lawful money
deposited with the Assistant Treasurer
ln charge OF the division OF issue and
redemption Of the retirement of such
notes.
AMOUNT or CIRCULATION.
The present restrictions upon the
amount OF circulation which may be
Withdrawn monthly and also upon new
issues OF bank notes by banks having
made Withdrawals within six months arc
repealed.
Section e ~ the bill provides for re-
demntion OF notes in mutiples of $1,000 IN
lawful money upon presentation at the
Treasury or sub-Treasuries designated
for redemption purposes. but 1t is pro-
vidcd that nothing in this act contained
shall be construed TO impose upon the
United States any liability for the re-
demption of the notes Of any national
banking association beyond the proper
application of the REDEMPTION and guran-
tv funds deposited with the division OF
issue and redemption and the enforce
ment Of the redemptions by this act pro-
vlded"
Section 35 contains the provision that
one fourth Of the reserve shall be held
I'm coin with the specific mandate that
nothing i'm this section. except as ex-
pressly provided shall be construed 20
alter or I'm any way effect the provisions
OF existing law governing the mainte-
nance of reserves.
Section 81 authorizes the establishment
OF banks with capital Of $4,000 in towns
not exceeding fO50 inhabitants, and sec
ton y declares that II shall be lawful
for any national banking association TO
establish branches under such rules and
regulations as may be prescribed by the
-. ,r tho Currency with the