Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-02-15

81 81
To insure prompt redemption and pre-
serve public confidence. the Secretary can
use any general funds that can be
spared. and further. is empowered to sell
) per cent. bonds. payable in one and re-
dcemable i'm twenty years the proceeds
10 be used for redemption purposes afore-
said
The Secretary. to meet temporary de-
hcencies in the fiscal department. can is
sue per cent. certificates, running from
one 10 five years for $50 and upwards.
the coupon payable annually; or, when
the government wishes 10 use It's credit.
II con open book accounts for so and
UPWARDS, bearing per cent. interest.
These accounts can be transferred ana
drawn upon through any mOney-order Of
flee free of charge
No United States or Treasury note shall
be reissued, unless they have accumu-
lated unduly and produce a contraction Of
the currency tney can then De used TO
purchase bonds that are 10 be sold again
to get the notes back into the Treasury,
when eXpedieut.
The silver bullion IN the Treasury can
be sold for redemption purposes.
Gold certificates, when redeemed. cam
not be reissued.
No United states or Treasury notes car
be issued under SO, and no silver dollar
certlucdtes over ..
The United States and Treasury notes
must be paid and cancelled up TO $50
OD,VlO and the payment and cancellation
can continue, keeping pace with the issue
OF the proposed national bank notes. tho
new note. I'm fact and effect, taking the
place of the cancelled note, avoiding con-
traction.
II any Of the United States or Treasury
notes are outstanding after five years.
they shall be paid Off at the rate of one
fifth per year and those out after ten
years shall only be legal tender for dues
to the government.
When there Is surplus revenue. the
United States and Treasury notes on
hand can be transferred to the rodemp-
ton department for cancellation. When
there Is no surplus they can be exchanged
for gold coin and cancelled, when 10 Is
permissible under the act
The new law. OF course. shall not affect
contracts. etc. under the old law.
THE BANKING SYSTEM
Now, as to the banking system: Ma
tiOnal bank notes received from tho
COMPTROLLER OF the Currency can be
issued to the total amount of the paid-up
and unimpaired capital Of the bank less
real estate investments ut is. however
contemplated TO Offset the investment IN
real estate with any surplus bank may
have. and / so present iD. They must
be uniform i'm design and quality, and
$40 the lowest denomination. They con-
stitute a first lien upon all the assets of
the bank including the personal liability
equal TO % per cent of the capital Of the
bank. the notes must be represented by
the market value of United States bonds
deposited with the Treasurer, their value
20 be fixed yearly by the Treasurer on
per cent basis. Bonds payable at the
option Of the government VIII be received
at 80 per cent of their market value.
The remainder of the notes can be issued
without this special security. and after
five years the bonds deposited can be
Withdrawn at the rate of one fifth per
annum. thus In ten years the bond secu-
rity will be entirely eliminated The first
PA .| F.f T..
tax or interest charge the next 20 per
cent. pay per cent. per annum. and tho
last 20 per cent pay per cent per an
mum. the average being l.6 per cent The
notes may be retired by depositing any
lawful money with the United States
Treasurer thus stopping the tax or in
terest charge.
When notes are issued by the Comp
troller. the bank receiving them shall
deposit per cent. of their amount i'm
gold as a common guaranty fund. from
which any defaulting notes shall be paid
when the defaulting bank shall be- pro-
ceeded against for the amount Of the
same. and Of all Of their outstanding
notes. The guaranty fund Will be kept
az 3 per cent. of all outstanding notes by
extra assessments when necessary. This
fund may be invested IN United states
bonds Banks retiring their notes have
their unimpaired portion Of the guaranty
fund returned 10 them.
ANY stakeholder of record. within sixty
DAYS OF a SuSltiirl'N, VIII nc ildUit Tor an
amount equal 10 the par of his stock |
he in turn having recourse against the
new stakeholder. If the transfer Is bona
fde. The interest on the guaranty fund
and the tax on circulation shall be a fund
supplementing the guaranty fund. which |
however must be Kept always intact. as
provided The present per cent. re-
demptiOn fund continues. and II must be
deposited with the Treasurer In gold.
These new notes will pass in settle |
mcnts between banks. and be received !
bv the government for all dues. save GUS
toms. as with the present national bank /
notes.
MUST KEEP ONE FOURTH.
Each bank must hold one fourth Of It's |
lawful money reserve on deposits in coin /
I'm IFS own vaults. This reserve has no. |
hing TO do with the guaranty and re-
demptiOn funds No bank shall report it, |
own notes or consider them as cash
Banks with $1,000 capital can be char
cred In places having 1000 or less people. /
ttkf DOGS BARK. is a sign that
II fhare ie eirff4 I'D