The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-05-24

ed to secure circulation at the rate o
25 per cent Of the required deposits pc
year. and may withdraw those in ex
cess of the minimum requirement a
any time.
The privilege Of issuing currency
based upon commercial assets. withou
the deposit Of United States bonds. II
granted to national banks to tbs
amount Of 40 per cent Of their paid-uI
capital. but only upon condition thai
notes secured by bonds and national
reserve notes are taken in equa
amounts. Thus, bank organized un-
der this bill having capital of $780,
600, is required to have on deposit in
| the treasury s25. 900 Of United States
| bonds against which it may issue $685.
900 in currency notes. 1t may also is
sue S25, 900 additional in such notes
based upon commercial assets, and may
increase such issues If it increases also
its bond deposits and its holdings OF re-
serve notes in equal proportions. This
process may be continued up to the
point where the amount OF notes Sc
cured by bonds, the amount Of notes
not thus secured, and the amount of
national reserve notes are each equal
to 40 per cent Of the paid-up capital.
making an aggregate of $4,000 IN bank
notes and $40, 900 in reserve notes.
When circulation is issued in excess
of so per cent of the paid-up capital.
exclusive Of issues Of reserve notes, the
excess is liable to tax Of one-half Of
one per cent monthly.
All paper money except silver certifi-
Gates shall be in denominations Of SO
and higher. Silver certificates issued
by the treasury shall be in demonina-
lions of 81. 81 and s. only.
The burden of the current redemp-
ton of paper currency rests upon the
banks. They are required to redeem
their reserve notes over their own
counters, and to maintain in the trea-
sury five per cent gold fund for cur
rent redemption Of the notes in gold.
The reserve notes are guaranteed by
the government to be ultimately re-
deemed in gold from it's own resources
upon failure or liquidation Of the bank
to which they may have been issued.
The current redemption of currency
rSotes not secured by United States
bonds may be provided for by clearing
house districts under regulations pre-
scribed by the comptroIlers of the cur
rency.
The currency notes are redeemed, in
case of failure of the issuing bank to
redeem them, from a gold guarantee
fund in the custody of the secretary of
the treasury, known as the bank note
guaranty fund, which is made up by
each bank which takes out circulation
upon its commercial assets contribut-
ing in gold five per cent of it's asset cir
culation. Upon the failure of a bank
its notes shall be Immediately redeem
ed from this fund and the fund reim-
bursed from the assets of the failed
bank. Bank notes form a first lien
upon the assets and have behind them
also the individual liability of the stock
holders for assessment up to the
amount of their stock. Should these
sources fail to fully reimburse the
fund, the treasury may make an as
sessment upon the national banks is
suing asset circulation to reimburse it,
but these assessments shall not in any
one year exceed per cent Of the as
set circulation.
Existing national banks may con-
tinue to do business under their pres
emit charters upon acceptance Of the
new law, but must comply with the re-
luirement of taking out % per cent
Of their capital in reserve notes.
Branch banks may be established in
the discretion of the secretary of the
treasury.
Stringent regulations are provided
Ior the examination and conduct of ma
.ional banks.
The reserve requirements in relation
% banks are the same as under the
present law, except that so per cent of |
-hese reserves must be in gold.
Banks are required to pay a tax of |
of one per cent upon their |
,apital. surplus and undivided profits. |
The existing tax of one per cent per
'ear upon circulation is repealed.
II 10 safd IF GIa6s+o,o 4ba, T..