The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-07
PROVISIONS OF THE BILL
ALMOST IDENTICAL WITH THE RE-
PORT RECENTLY MADE PUBLIC.
Hearing TO he Accorded Messrs. Ed
munds, Taylor, Fries and FairchiId
wednesday of Next Week.
Special to the indianapolis Journal.
WAGuINCTON Ian 6-The

law the plan OF currency REFORM made puDHc
by the commission on Monday was intro
duced to-day in the House by Representa-
Awe Overstreet of Indiana. The bill is the
work of a subcommittee, of which ex-Sena-
tor Edmunds ex-Secretary Fairchild and
Mr. c. Stuart Patterson were members.
Those portions affirming the permanence of
the gold standard and providing for a di-
vision of issue and redemption, and the
gradua; retirement of the legal-tender notes
out of the surplus revenues, are taken with
very few changes from the plan as printed.
The sections regarding the changes in the
banking aw, intended to give elasticity to
the currency by notes issued on assets, Sc
cured by a guaranty fund, are set forth
more fully than in the report in order to
cover the necessities of legislation. The bill
contains forty-seveE sections and deals with
several subjects at length which were only
generally defined in the report of the COM
mission. The opening sections define the
metallic standard and affirm the declaration
of the report that all obligations of the
United States for the payment of money
now existing or hereafter to be entered into
shall, unless hereafter otherwise expressly
stipulated be deemed Ind held to be pay
able in gold coin OF the United States
The provisions for the division of issue
and redemption are set forth fully, as in the
report, including the provision that silver
dollars may be exchanged for gold coin,
without providing for the direct redemption
of silver certificates. The section which
distinguishes the denominations of the gov
eminent paper money is follows;
Section IA. No United States note or
treasury note issued under the act of July A.
$780, of denomination less than $40 shall
hereafter be issued, and silver certificates
shall hereafter be issued or paid out only in
denominations of 81, 81 and s. against silver
dollars deposited in the division of issue and
redemption or in exchange for silver GER
tificates denominations exceeding S."
The provisions of the report for the issue
of certificates of Indebtedness running from
one year to five with interest not exceeding
3 per cent, to cover temporary deficiencies
is carefully framed, and is followed by the
provisions of Section II. authorizing the in
scription of the public debt at Washington
without the old formalities of engraved
bonds for those who do not wish to be
charged with the care of them. Coming to
the banking features, full provision is made
for the continuance of the circulation of %
per cent. of the capital of a bank, based
upon United States bonds, with authority
to withdraw such bonds and base the crcu-
lation upon banking assets in the proportion
of one-fifth of this form of circulation an
nually at the end of five years. This will
transfer the circulation to the system of
banking upon commercial assets, with a
guarantee fund, at the expiration of ten
THE GUARANTEE FUND.
The provision for the guarantee fund is set
forth more fully than in the report in the
following terms:
Section 20 That every national bank as
ISOLATION 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 per
centum OF its 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
namely: Whenever the controller of the
currency shall have become satisfied, by the
protest and oy the waiver and admission
vlded for in Section 5227 of the Revised
Statutes of the United States, that any as
ISOLATION 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 be so redeemed.
After the failure of any national banking
association to redeem its notes shall have
been thus ascertained the bonds deposited
with the treasurer of the United States
shall be sold provided by law, and the
proceeds of such sale shall be paid into the
bank note guaranty fund The controller of
the currency shall forthwith collect, for the
benefit of the fund, from the assets of the
bank ana from stockholders thereof accord
ing TO their liability, as declared by this
act, such sum as, with the banks balance
in the bank-note guaranty fund, shall equal
the amount OF its circulation outstanding.
And for this purpose the United States
shall on behalf of the bank-note guaranty
fund. have paramount lien upon all the
assets of the association, and such fund
shall be made good out of such assets in
preference to any and all other claims what
soever, except the necessary costs and ex-
penses of administration of the same
The next section of the bill provides
That whenever the controller of the cur
rency shall ascertain what deficiency. if any
exists between the aggregate collections
for the benefit of the bank note security
fund. in the case OF any failed bank, and
the amount of its outstanding notes
deemed and to be redeemed 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 fail
ure of such bank" The provision for, the
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 a duty imposed at the rate
of per centum of it's circulating notes out
standing IN excess of 60 per centum of its
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 50 per
centum OF its capital stock. CIRCULATING
notes of any national banking association
shah be deemed and held to be outstanding
whenever they shall have been supplied by
ISOLATION in blank. registered and counter
signed according to law and shall have not
been returned to the controller for can
collation. or covered by equal amount
of lawful money deposited with the assist
ant treasurer In charge OF the division of
issue and redemption for the retirement OF
such notes"
The presents restrictions upon the amount
of circulation which may be Withdrawn
monthly. and also upon new issues of bank
Tiotes by banks having made Withdrawals
within six months, are repealed.
REDEMPTION OF NOTES.
Section "a of the bin provides for re-
demption of notes in multipes of s1,00O in
lawful money. upon presentation at the
treasury. or subtreasuries designated for
redemption purposes. but 1t is provided
that nothing In this act contained shall
be construed to impose upon the United
States any liability for the redemption Of
: the notes OF any national banking associa-
tion beyond the proper application of The
redemption and guaranty funds deposited
with the division OF issue and redemption.
and THE enforcement OF the remedies by this
act provided"
fourth OF the reserve shall be held n coin,
with the specific mandate that nothing IA
TINS section. except as expressly provided.
snail De construed 10 alter or In any way