The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-01-07

Washington, Jan. Representative
Overstreet of Indiana introduced in the
house today comprehensive bill for
carrying out the plan of the monetary
commission for the reform of the cur
relcy The bill was referred by Speak
er Reed to the committee on banking
and currency. Mr.. Walker has ar
ranged to give early hearings to Sena-
tor Edmunds, chairman of the commits
sion, and perhaps to other members.
The bill contains A sections, and
erabodies in legislative form every fea-
ture of the recommendations made. In
the early pOT zion, relating to the main
tenance of the gold standard, the Gre
alton of the bureau OF issue and re-
iemption and the gradual retirement Of
the legal tender notes, are embodied in
the bill in almost the same language
as in the report. The banking features
are more elaborate, and carefully de-
fine the character of the guaranty fund
Cor the protection of notes issued upon
assets, and the manner of redeeming
the notes of failed banks. The section
dealing with the guaranty fund is as
follows:
GUARANTY FUND.
Sec. ,. That every national banking
association shall at all times keep and
have on deposit with the division of
issue and redemption for the purpose
hereinafter specified, a sum of gold
coin equal TO per cent of its out
standing circulation. The amounts so
kept on deposit shall constitute a fund
to be known as the bank note guar
anty fund. which fund shall be held
tor the following purpose, and for no
other, namely:
Whenever the comptroller of the
currency shall have become, with the
protest of the waiver and admission
specified in section 1858 or by the re-
port provided for in section 5227 of
the revised statutes of the United
States, that any association has re-
fused to pay its circulating notes on
demand in lawful money, he shall di-
rect the redemption of such notes from
the bank note guaranty fund afore-
said, 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 as provided by law, and the
proceeds of such sale shall be paid
into the bank note guaranty fund. The
comptroller of the currency shall forth
with collect for the benefit of the fund,
from the assets of the bank and from
stockholders thereof, according to
their ability as declared by this act,
such sum as with the banks balance
in the bank note guaranty fund, shall
equal the amount Of its circulating
notes outstanding. And for this pur-
pose 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
whatsoever, except the necessary costs
and expenses of administering the
same
DEFICIENCY ASSESSMENT.
The next section of the bill provides
hat whenever the comptroller of the
currency shall ascertain what deficien-
cy, if any, lies 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 out
standing notes redeemed, and to be Ie
deemed, from the said fund, he shall
assess such deficiency upon all the ma
tional banks in proportion to their
notes outstanding at the time of the
failure of such bank.
The provision for the assessment for
the tax upon the circulation above the
authorized limit is as follows:
Sec. %. That every national banking
association shall pay, On or before the
last day of every month, to the di-
vision of issue and redemption, a duty
imposed at the rate of per cent per
annUnl, upon the average daily amount
of its circulating notes outstanding in
excess Of so per centum of its capital
stock, and not in excess of SO per
centum Of such capital stock and a
daily imposed rate of 6 per centum per
annum upon the average daily amount