Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-01-07
CURRENCY REFORM.
BILL TO CARRY OUT M0NETARr
COMMISSIONS PLAN. a
HEARINGS At AN EARLY DAYg.
Ex-senator Edmnnds, md Perhaps,
other Members OF the Commfssion.
TO speak before the House Commits
tee ON Banking and Currency.

WASHINGTON. January s.-Represen-
tative Overstreet, OF Indiana, introduced
In the House to-day comprehensive bilf
for carrying out the plan OF the Monetary
Commission for the reform OF the cur
rency
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 ex-Scna-
tor Edmunds, the chairman Of the COM
mission, and perhaps to other members.
Tho bill contains forty-seven sections. and
embodies in legislative form every fea-
ture Of the recommendations OF the COM
mission. The earlier portions, relating to
the maintenance OF the gold standard. tho
creation Of a bureau OF issue and re-
demption, and the gradual retirement of
the legal-tender notes, are embodied in
the bill in almost the same Language as in
the report. The banking features ara
more elaborate. and carefully define the
character of the guaranty fund for tha
protection Of notes issued upon assets.
anu tAtC HloultI OF ItQEtmInK the UOtf3
OF failed banks. The section dealing with
the guaranty fund is as follows:
Section 20-That every national bank
ing association shall at ell times keep and
have on deposit with the division Of issua
and redemption, for the purpose herefn-
after specified, a sum in gold coin equal
to 8 per centum OF its outstanding cir
culation. The amount so kept on depoa1e
shall constitute a fund to be known az
the bank-note guaranty fund which
fund shall be held for the following pur-
poses, and for no other.--namely: When-
ever the Comptroller OF the Currency
shall have become satisfied by the pro-
test OF the waiver and admission specified
in section 5226. or by the report provided
for in section 5227 of the Revised Statutes
of the United States. that any association
has refused to pay its circulating notes on
demand in lawful money. he. shall direct
the redemption Of such notes from the
bank-note guaranty fund aforesaid, and
such notes shall thereupon DE so re-
deemed
After the failure OF any national bauk-
ing association to redeem it's notes shall
have been thus ascertaned, the bsnds de-
posted with the Treasurer of the Unltes.
States shall be sold. as provided by law.
and the proceeds of such sales shall bo
Pdlu lnlO tic Ddilh-IOlc EudtdU(I lUnUs
The Comptroller OF the Currency shalt
forthwith collect. for the benefit OF tho
fund, from the assets of the bank and
from the stockholders thereof. recording
TO their liability, as declared by the act.
such sum as, with the banks balance in
the bank-note guaranty fund, shall equal
the amount of it's circulating notes out
standing. And for this purpose the United
States shall, on behalf OF the bank-note
guaranty fund, have a paramount lien
upon all the assets OF the association.
and such funds shall be made good out
of such assets in preference to any and
all other claims whatsoever. except tha
necessary costs and expenses OF admin-
istering the same"
The next section Of the bill provides
that, whenever the Comptroller or the
Currency shall ascertain what deficiency,
If any, exists between the aggrc gate coll
lections for the benefit of the bank-note
security fund i'm the case of any failed
bank, and the amount OF its outstanding
notes, redeemed and TO be redeemed from
the said fund, he shall assess such deiI-
cheney upon all the national banks in pro-
portion to their notes outstanding at the
time of the failure Of such bank"
TAX ON CIRCULATION.
The provision for the assessment OF the
TAX UPON the dDONC lHC du-
thorized limit is as follows:
Section 20-That every national banking
association shall pay on or before the
last day Of every month 10 the
division of issue and redemption, a duty
imposed at the rate of 2 per centum per
annum upon the average daily amount
of its circulating notes outstanding in
excess OF 90 per centum OF it's capital
stock, and not in excess OF so per centum
of such capital stock. and duty imposed
at the rate of per centum per annum
upon the average daily amount OF such
notes outstanding in excess OF 80 per
centum Of it's capital stock. Circulating
notes OF any national banking association
shall be redeemed and held to be out
standing whenever they shall have been
supplied by the Comptroller of the Cur
rency TO such association in blank. reg
istered. and countersigned according 10
law, and shall not have been returned
to the Comptroller for cancellation, or
covered by an equal amount OF lawful
money deposited with the Assistant
Treasurer in charge Of tho division OF
issue and redemption for the retirement
of such notes"
Tne present restrictions upon the
amount OF circulation which may bc
withdrawn monthly. and also upon new
issues of bank notes by banks having
made Withdrawals within six months, are
repealed.
Section "a OF the bill provides for the
redemption OF notes in multiples OF N,oco
in lawful money, upon presentation at
the Treasury or at Sub-Treasuries desig-
mated for redemption purposes, bUt II is
provided that nothing In this 8ct con-
tained shall be construed TO impose upon
the United States any liability for the
redemption Of the notes OF any national
banking association beyond the proper
application OF the redemption and guar
anty funds deposited with the Division
of Issue and Redemption, and the enforce
ment OF the redemption by this act pro-
yided"
Section s5 contains the provision that
one fourth OF the reserve shall be held
In coin, with the specific mandate that
nothing In this section, except as expressly
provided, shall be construed TO alter or Ia
any way effect the provisions OF existing
law governing the maintenance or re-
serves"
Section 81 authorizes the establishment
OF banks with capital oI $1,000 in towns
not exceeding 1900 Inhabitants, and Sec
ton 80 declares that II shall be lawful
for any national banking association 10
establish branches, under such rules and
regulations as may be prescribed by the
Comptroller OF the Currency. with the
approval OF the Secretary OF tho Trea-
sury.''
Provision is made for the entry OF stats
banks into the new system.
e
The Weather.