Worcester morning daily spy., 1898-03-24
are mol IlabIe for the ultimate redemp-

are not liable for the ultimate redemp-
ton
3-The basis of national bank note
circulation will eventually be the COM
mercial assets of the bank. This result
will be reached, however, cnly after d
series of years. National banks will
continue to be required during one year
after the passage Of this act, to main
tain the minimum amount of United
States bonds as security for circulation
which is required by existing law, but
they will be permitted to issue notes to
the face value of these bonds. This
bond deposit may be reduced by one
fourth annually, beginning one year
after the passage of the act
4-Nat1onal banks are to be permitted
to issue current notes upon their COM
mercial assets to the amount of the re-
serve notes issued TO them in return for
deposits of United States notes. The
purpose of this provision is to compel
the conversion of United States notes
into reserve notes as well as to limit
the issue of currency upon commercial
assets
o-Treasury notes issued under the act
OF July IA, $780, are to be dealt with
eventually upon the same basis as
United States notes.
"a tax of 2 per cent is levied upon
currency notes issued in excess of 60
per cent of the capital Of any national
pank tax of 6 per cent is levied upon
the circulation of the same character in
excess of so per cent of the capital.
the national currency notes based
upon commercial assets are to be Sc
cured by bank note guaranty fund,
made up by contribution in gold coin of
8 per cent of the entire circulation of
the bank. This fund may be replen-
ished by calls upon the bank, if re-
duced by the redemption of the notes
OF failed banks, but no bank shall be re-
CURED to pay more than one per cent
in addition to its original deposits of 5
per cent in any one year. The notes are
also secured by first lien upon the
bonds on deposit as security and upon
all the other assets of the bank.
S-The national reserve notes will CON
tinue to be legal tender until received
into the treasury from failed and liqui-
| dating banks, when liability for them
viii be assumed by the government ana
will be redeemed and Cancelled ProVis-
ion is made that they shall cease to be
required as basis of circulation when
the secretary of the treasury is salts
ned that there is no longer a sufficient
amount available to meet the demands
for new banks and increased circulation.
9-Standard silver dollars are to be
maze fedeemable IN gold, but silver GER
tificates are redeemable only in stand.
ard silver dollars. The parity of silver
with gold is secured by gold redeenp-
ton fund.- deposited in the division of is
sue and redemption, equal to per cent
of the amount of silver which has been
coined.
10-Silver certificates are hereafter to
be issued only in denominations of 81,
81 and S.. Legal tender notes, reserve
notes and currency are not to be issued
in denominations below $40.
11-National banks are required to
pay tax of B of l per cent semi-an-
nually upon their capital, surplus and
undivided profits.
12-National banks are permitted to
establish branches, under. regulations to
be prescribed by the secretary of the
treasurYs54 Ia
The committee SAY in explanation of
the4provision regarding the assumption
of the legal tender notes by the banks
| that they have endeavored to adopt a
system which would be subject to none
Of the criticism made against the issue
of interest-bearing bonds or the tax
alton Of the. people for the payment of
this demand. They declare: "The sys-
| tenn adopted is such as to continue to
! the governments all the benefits of the
! loan without any of the disadvantage
of its character as a demand obliga-
ton"