The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1898-01-11
REVISION
of the Bill Proposed by the Mon
etary Commission-The Bill Introduced
If the House and Referred to the Com
mittee on Banking and Currency

washington, JanudTy o.-FStpTeSen
tative Overstreet, of Indiana, ~introduc-
ed in the house today a comprehensive
bill for carrying u the plan Cf the
monetary commission for the reform
of the currency. The bill was referred
by Speaker Reed to the committee on
banking n currency, n Chairman
Walker has arranged to give early
hearings to Senator Edmunds. the chair
man of the commission, and perhaps
to other members. The bill contains
forty-seven sections and embOdies in
Legislative form every feature of the
recommendations Of the commission.
The earlier portions, relating to 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 embOdi-
ed in the bill in almost the same Ian
guage as in the report. The banking
features are more elaborate and care
fully define the character of the guar
anty fund for the protection of notes
issued upon assets and the manner of
redeeming the notes of failed bank
THE section dealing with the guaranty
fund is as follows:
Section 20. That every national
banking association shall at all times
keep and have on deposit with the
division Of issue and redemption for
the purpose hereinafter specified a sum
in gold coin equal to 5 per centum of
it's outstanding circulation. The
SO kept on deposit shall con-
stitute a fund to be known as the
bank note and guaranty fund which
fund shall be heId for the following
purposes, and fer no other, namely:
Whenever the comptroller of the
currency shall have become satisfied
by the protest or the waiver and ad-
mission specified in section 1926, or by
the report provided for in section 1927
of the Revised Statutes of the United
States, that any association has re
fused to pay it's circulating notes on
DEMAND in lawful money, he shall di-
rect THE redemption of such notes
from the bank note guaranty fund
aforesaid, and such notes shall there-
upon be SO redeemed. After the fail
ure of any national banking associa-
ton to redeem it's notes shall have
been Thus ascertained, the bonds de-
posted with the treasurer CT the
United States shall be sold, as prOvid-
ed by law, and the proceeds of such
sales shall he paid into the bank note
guaranty fund. The comptroller of
the currency shall forthwith collect,
for the benefit of the FUND from assets
of the bank and from stockholders
thereof. according to their liability, as
declared by this act, such sums as,
with the bank's balance in the bank
note guaranty fund, shall equal THE
IL 80 -~Ao 11,+
standing. And for this purpose the
United States shall on behalf of the
bank note guaranty fund have a. par
mount lien upon all the assets Of the
association; and such fund shall he
made good out of such assets in prefer
ence to any n all other ain what
sOever, except he necessary costs and
expenses of administering the same"
The next section of the bill provides
that whenever the comptroller of the
currency shall ascertain what de
ficiency, if any, exists between the ag-
gregate collections for the nefi of
THE bank note guaranty fund in h
case of any failed bank and the amoun
of it's outstanding notes redeemed and
to be from the said fund, he shall
assess such deficiency upon all the
national banks in proportion to their
notes outstanding at the time of the
failure of such bank"
The provision for the assessment of
h tax upon the circulation above the
authorized limit is as follows:
Section 20. That every national
banking 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 2 per
centum per annum upon the average
Ivy n 0,, - g "a ~ 100000
outstanding in excess of 60 per centum
of it's capital stock, and not in excess
Of so per centum of such capital stock,
and a duty imposed ait the rate of s
per centum per annum upon the aver
age daily amount of such notes out
standing in excess of so per entum of
its capital stock. Circulating notes of
any national banking association shall
be redeemed and held to be outstand-
ing whenever they shall have been
supplied by the comptroller Of the Sur
rency to such association in blank, reg
isterdd and countersigned according to
law, and shall have not been returned
to the comptroller for cancellation or
covered by an equal amount of lawful
money deposited with the assistant
treasurer in charge of the division of
issue ard redemption for the retire
merit of such notes"
The present restrictions upon the
amount of circulation (which may be
Withdrawn monthly and also upon new
issue Of bank notes by n having
made Withdrawals within six months
are repealed.
section "a of the bill provides for re-
demption Of noteS in multiples of 81, 900
in lawful money, upon presentation at
the treasury or sub-treasuries desig-
mated for redemption purposes, but it
is provided that nothing in this act
contained shall be construed to sm-
pose upon the United States any lfabil-
ity for the redemption OF the notes Of
any national banking association be-
yond the proper application of the re-
demption and guaranty funds deposit
ed with provisions Of issue and redemp