Evening star., 1898-01-06
Introduction Of the Monetary Com
mission Bill.
REFERRED TO PROPER COMMITTEE
Character Of the Proposed Guar
anty Furd.
PROTECTION OF THE NOTES

| tToduced IN the House today a cOmprehen-
sive bill for carrying out the plan of the
| monetary commission for the reform of
the currency. The bill was referred by
Speaker Reed to the committee on bank
| ing and currency. and Chairman Walker
Eas arranged to give early hearings TO ex-
| Senator Edmunds. the chairman of the
| commission. and perhaps to other men,
| bers.
| The House committee on banking and
| currency made arrangements today to
| near representatives of the monetary COM
| mission on January IL relative to the bill
lor currency reform prepared by that body
! nose TO appear will be Judge Edmunds.
| representing the commission. and also rep
| resenting the north and east; Judge R. s.
| Iaylor CT Terre Haute, Ind. representing
| tie middle west: j. W. Frees of Salem. n
| T., representing the gold democratic senti-
| ment of the south. and eX-Secretary Fair
| child of New York
| The bill contains forty-seven sections and
| empodles in legislative form every feature
| OF the recommendations of the commission
| Inc earlier portion, relating to the main
| tenance of the gold standard, the creation
| OF the bureau of issue and redemp,ion.
| ana the gradual retirement of the legal
| tender notes, are embodied in the bill in
| almost the same language as in the report
as recently published in The Star The
| panking features are more elaborate and
oafefully deilne the character OF the guar
| anty fund for the protection of notes is
sued upon assets and the manner of re-
deeming the notes Of failed banks The
| section dealing with the guaranty fund is
| as follows:
/ The Bank Note Security Fund,
Sec. 20. That every national banking
| association shall at all times keep and
We n wit, H., III,
| and redemption, for the purpose herein
after specified, sum in gold coin equal
| to five per centum of its outstanding CIR
cuiation. The amounts kept on deposit
shall constitute fund to be known as
the bank note guaranty fund.- which
| fund shall be held for the following pur-
pCses, and for no other namely: When
ever the controller of the currency shall
have become satisfied by the protest of the
waiver and admission specified in section
! 5226 or by the report provided for in sec
| ton 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 be 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, as provided by law, and the
proceeds pro Is, Of suel, sale shall be paid into
the bank note guaranty fund The con-
troller of the currency shall forthwith col
| lcct, for the benefit of the fund, from the
assets of the bank and from stockholders
thereof, according to their liability as de-
clared by this act, such sum as, with the
| banks balance in the bank note guaranty
fund.- shall equal the amount of its circli-
latihs notes outstanding. And for this pur-
tod H.,
the bank note guaranty fund have a para
mount lien upon all the assets of the asso-
citation; 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 admins
| terlng the same"
The next section of the bill provides
Ihat whenever the controller of the cur
rency Shall ascertain what deficiency If
any, exists between the aggregate colIec
lions for the benefit of the bank note securi
| ty fund in the case of any failed bank and
the amount of it's outstanding notes ra-
deemed and to be redeemed from the sa;1
fund, he Shall assess such deficiency ,non
All the national banks in proportion to their
notes Outstanding at the time of the fail
ure of such bank
The provision for the assessment of the
tax upon the circulation above the author
lied limit is as lolows:
Tax on Circulation,
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 per annum upon the
average daily amount of its circulatirr
rotes 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 at
the rate of q per centum per annum upon
the average daily amount Of such notes
Outstanding of
Its capital stock. Circulating notes of any
national banking association shall be re-
deemed and held to be outstanding when
ever they shall have been supplied by the
controller of the currency to such associa
tionsln blank, registered and countersiened
according to law, and shall have not been
returned to the controller for cancellation
or covered by an equal amount of lawful
money deposited with the assistant trt as
rrer in charge of the division of issue and
redemption for the retirement of such
notes.
The present restrictions upon the amount
Of circulation which may be withdrawn
mcntfly, and also upon new issues of bank
notes by banks having made Withdrawals
within six months, are repealed.
Government Not Responsible.
Section "a of the bill provides for re-
demption of notes in multiples of $1,000 in
lawful money. upon presentation at the
treasury and subtressury designated for
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
Section 35 contains the provision that
one-fourth of the reserves shall be held in |
ccin, with the specific mandate That |
nothing IN this section except as express
ly provided shall De construed to alter
or in any way affect the provisions of ex- |
listing law governing the maintenance of
reserves
Section 81 authorizes establishment of |
banks with capital Of $25, 600 in towns |
not exceeding 1880 Inhabitants, and Sec
ton 3S declares THAT it. shall be lawful |
for any national banking association to |
establish branches under such rules and |
regulations as may be prescribed by the i
controller of the currency. with the an
provai Of the Secretary of the Treasury
Section Al provides for at least two ex- |
aminations Of national banks each. year.
for the rotation of examiners and for fixed 1
salaries for examiners. The amount of the |