The times., 1898-01-13
MR.. CIRCUITS BANKING BILL.
Its Object Is to Provide an Elastic
C.uyp


Currency.
A banking bill has been introduced in
the House by Mr.. Grout, of Vermont.
The object of the bill is to extend and
make elastic the bank currency system.
1t provides that all national banks
are authorized to issue circulating
notes to a par value of the United
States bonds deposited with the Treas
urer of the United States to secure
the redemption of such notes, and when
a national bank has once taken circu-
lation it shall not be retired except
with the approval of the Comptroller
of the Currency, under such rules and
regulations as shall be prescribed by
the Secretary of the Treasury.
Whenever, in the judgment of the
Comptroller of the Currency, an emer-
gency arises in which larger volume
Sof circulating medium is necessary 20
aaye or relieve from financial Stringen-
cy, the Eomptroiler may. with the ar
H1pvaf of the Secretary of the Treasu-
sry, authorize the national banks to is
sue emergency circulating notes equal
FIN amount TO such fractional part as
may be determined, not exceeding one
half of the market value of said bonds
above their par value, and for such
time as he may determine, provided,
that such circulating notes shall in no
case exceed in amount 10 per cent. of
the loans and discounts of the bank is
suing them. When the stringency shall
have subsidized the emergency circulat-
ing notes shall be retired, and the Sec
retary of the Treasury is authorized 10
make all needful rules and regulations
to give effect to this section.
Hereafter the tax to be paid into the
United States Treasury on the circula
ton of national banks shall be one
fourth of l per cent, per annum, in
lieu of l per cent. per annum, as pro-
yided by existing law. Hereafter on all
deposits received by national banks in
excess of $500, 900 there shall be paid
by such bank into the Treasury of the
United States a tax of | per cent. Ler
annum, provided, that no tax shall he
collected on any deposits made by one
national bank with another national
bank as redemption fund, nor on any
deposits made by any savings bank or
trust company in any national bank for
redemption purposes
Ten per cent. of the amount paid
into the Treasury of the United Staies
under sections and 8 of this act shall
be set apart by the Treasurer Jf II g
United States as a contingent fund fo.'
the redemption of the circulation which
may be issued by national banks, in
case the bonds deposited with the
Treasurer by any broken bank shall not
sell for an amount sufficient to redeem
all circulating notes issued by such
bank. provided, that the redemption
fund so created shall at no time exceed
in amount per cent. of the total
amount of of national bank note cir
culation.
National banks may hereafter be
organized under the provisions of ex
listing law with capital of $4,000: pro-
vided. that the articles of association
OF such bank shall be for the term Of
ten years only, and shall not he re-
Eewed unless the capital stock lie in
creased to at least $50. GOO, and when
the capital is so increased the renewal
may be for a term of twenty years. Ma
tional banks with paid-up capital 1f
$l00. 900 or more may. with the approval
OF the Comptroller of the Currency, es-
tabish q branch or branches. under
such rules and regulations as the Sec
retaly OF the Treasury may prescribe.