The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-01-06
Recommendations of the None
tary Commission
Are Embodied in a Measure In
PRODUCED Today
BY MIR. OVERSTREET.
The Bill is Referred to Mr..
Walkers Committee.
Provides Effectually For Per-
manence of Gold Standard.

Washington. Jan. Representative
Overstreet of Indiana introduced into
the house today comprehensive bill
for carrying out the plan of the mon
etary commission for the reform of the
currency.
The bill was referred by Speaker
Reed to the committee on banking, and
Chairman Walker has arranged to give
early hearings to Senator Edmunds.
the chairman of the commission, and
perhaps to other members. The bill con-
tains A sections and embodies in Iegis-
lative form every feature of the recon-
mendations of the commission. The
early portion, relating to the mainten-
ance Of the gold standard. the creation
of the bureau of issue and redemption
and the gradual retirement of the legal
tender notes, are embodied in the bill in
almost the same language as the re-
port. The banking features are more
elaborate and carefully define the char
acter of the guaranty fund for the pro-
lection of notes issued upon assets and
the manner of redeeming the notes of
failed banks. The section dealing with
the guaranty fund is as follows:
Sec THAT every national bank
ing 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 percentum of it's outstanding
circulation. The amounts so kept on
deposit shall constitute a fund to be
known as the bank note guaranty
fund which fund shall be held for the
following purpose and for no other,
namely:
whenever the comptroller of the
currency shall have become satisfied
by the protest of the waiver and ad-
mission specified in section 1855, or by
the report provided for in section 5,227
of the revised statutes of the United
States that any association has re-
fused to pay its 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 rhereupon be so
redeemed. After the failure of any
national banking association to redeem
its notes shall have been thus ascer-
tanned, the bonds deposited with the
treasurer of the United States shall be
sold, as provided by law, and the pro-
ceeds of such sale shall be paid into the
bank note guaranty fund. The comp
trOiler of the currency shall forthwith
collect for the benefit of the fund from
the assets of the bank and from stock
holders thereof, according to their LA
bilfty, as declared by this act, such sum
as with the banks balance in the bank
note guaranty fund shall equal the
amount of its circulating notes out
standing and for this purpose the Unit
ed States shall, on behalf of the bank
note guaranty fund, have a permanent
lien upon all the assets of the aSSoc1a-
ton, and such fund shall be made good
out of such assets in preference to any
and all other claims whatsoever, except
the 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 dehcien-
cy, if any, lies between the aggregate
collections for the benefit of the bank
note security fund in the case of any
failed bank and the amount of it's out
standing notes redeemed and to be re-
q said fund he shall
sess such deficiency upon all the ma
tional banks in proportion to their
notes outstanding at the time OF the
failure of such bank.
The provision for the assessment of
the tax upon the circulation above the
authorized limit is as follows:
Section %. That every national
banking association shall pay on or
before the last day of every month to
the division of issue and redemption
duty imposed at the rate of per cent
per annum upon the average daily
amount of its circulating notes out
standing in excess of so per centum of
its capital stock and not in excess Of
so per centum of such capital
stock and a duty imposed at
the rate of per cent per annum upon
the average daily amount of such notes
outstanding in excess of so per centum
of its capital stock. Circulating notes
of any national banking association
shall be deemed and held to be out
standing wherever they shall have been
supplied by the comptroller of the cur
rency to such association in blank,
registered and cOunterSigned accord
ing to law and shall have not been re-
turned to the comptroller for cancella-
ton or covered by an equal amount of
lawful money deposited with the as
sistant treasurer in charge of the divis-
ion of issue and redemption for the re-
tirement of such notes..
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
are repealed.
Section "a of the bill provides for re-
dernption of notes in multiples of $1O0J
In lawful money upon presentation at
the treasury or ub-treasuries desig-
mated for redemption purposes.
Section IS contains the provision that
one-f0urth of the reserve shall be held
A. coin, with the specific mandate that