The times. [volume] (Richmond, Va.) 1890-1903, 1898-05-21
yer dollars which have been coined.
VIGILANCE OF CREENRACkS.

tion in gold. so far as they are eAOH"heeu
by national banks for national reserve
notes.
National reserve notes are new form
OF currency provided by the bin In place
OF the existing greenbaks. They are legal
tender and are intended for circulation
as currency or FOR use IN the reserves
OF the hanks I'm exactly the same manner
as the exiting greenbacks" Nauonal re-
serve notes are TO be issued TO any ma
tlonal bank 20 any amount not exceeding
it's paid-up capital, upon It's surrender TO
tho treasury OF an equal amount Oh
greenbacks.
are cancelled and destroyed. The banks
taking reserve notes are required 10 con-
tribute TO the current redemption fund
held I'm tho treasury five per cent Of the
amount Of their reserve notes in gold
coin and to replenlsh this reserve when
ever II Is reduced by the redemption OF
the reserve notes.
Tn money in circulation Is not reduced
by any OF tho preceding provisions Ma
tional reserve notes take the place or the
grccnbacks for which they are eA-
changed. and gold coin takes the place
OF greenbacks which are directly re-
deemed.
CONDITIONS FOR TAKING RESERVE
NOTES.
Existing national banks are required 10
take reserve notes. TO the amount OF 20
per cent Of their capital. but two priVil-
eyes are offered the banks I'm compensa-
ton for their assumption of the current
redemption OF the notes. one or ihese Is
the privilege OF issuing currency notes
upon general assets. which Is set forth
fully under the next general head. me
second privilege is -rtial remission OF
the tax OF one-forth OF one-per cent per
year levied by the bin upon the capital.
surplus and undivided profits OF each
bank. The remission thus allowed Is az
the rate OF one-half of one per cent. per
year Of the amount Of reserve notes Is
sued 20 the bank.
REDISTRIBUTION OF RESERVE
NOTES
National reserve notes may be recalled
from the banks to which they have been
issued by the Secretary OF the treasury
in equitable proportions and distributed
20 new national banks. which are re-
auired to pay for them I'm gold coin after
the United states notes cease 10 be avail
able The withdrawal of reserve notes
does not reduce the limit OF currency
based upon commercial assets.
BANK NOTE CURRENCY
BOND Secured Circulation
banks having charters under theold law
may continue TO issue currency as al
present. based upon United states bonds
The minimum amount Of United states
bonds required upon the passage OF tne
bin is the same as under existing laW-zo
per cent. of the capital, but not exceeding
S0.000-but banks may issue notes upon
All their bond deposits 20 the par value
of the bonds instead Of 30 per cent, as al
present Beginning four years after the
massage Of the act any bank may with
draw the bonds deposited % secure clr.
culation al the rate of p per cent. OF the
required deposits per year and may WIN
draw those I'm excess Of the minimum re-
Qurement at any time
Currency Upon Commercial Assets-
The privilege Of issuing currency based
upon commercial assets. without the de-
post Of United States bonds is granIeu
to national banks TO the amount OF ~
per cent Of their paid-up capital Dut
onlv upon condition that notes secured
bv bonds and national reserve notes are
taken in equal amounts. Thus, a BANK
orranized under the bill having capital
of 800 900. is required to have on deposit
i'm the treasury $4,000 OF United States
bonds against which 1t may issue $zo'Uv
I'm currency notes. 1t may also issue go
600 additional in such notes based upon
commercial assets, and may increase
such issues II it Increases also its bond
deposits and its holdings OF reserve
notes I'm equal proportions. ms pro
cees may be continued up TO the point
where the amounts Of notes secured py
bonds the amount of notes not tnc1 Sc
cured and the amount of national re-
serve notes are each equal to 40 per
cent. of the paid-up cauital, making an
aggregate Of $4,000 i'm bank notes ana
$40 OO0 I'm reserve notes.
Tax on Emergency Circulation.-When
circulation not secured by bonds Is IS
sued I'm excess Of so per cent. of the capl-
tai. exclusive Of issue of reserve notes.
the excess is liable 10 tax OF one-ha4I
of one per cent. monthly.
Denomination of Notes.-AH paper
money except silver certificates shall
be I'm denominations OF $io anu HisiI.i.
silver certificates issued by the Treasury
shall be in denominations OF ST. . ana
s. only. -.
THE burden Of the current redemp-
tion of paper currency rests upon the
hanks They are required TO redeem
tbejr reserve notes over their own couh
ters. and tomaintain I'm the Treasury q
five percent gold fund fer current re-
demption Of the notes in gold Inc re-
serve notes are guaranteed by the Govern
ment 10 be ultimately redeemed III bolu
from It's own resources upon failure OF
uouidation OF the bank 10 when lhey
may have been issued.
The current redemption OF currency
notes not secured by United states bonds
NAV be- provided for by clearinghouse
districts under regulations prescribed DS
the Comptrollers of the Currency.
/ Tho Bank-Note Guaranty Fund.-Ihe
currency notes are redeemed. TN case oil
I failure Of the issuing bank TO redeem them
| from a gold guaranty fund 10 me GUS
! todv OF the Secretary Of the treasury
| known as the Bank-Note Guaranty tuno
| which is made up by each bank Whlch
| takes out circulation upon its CONNER
| cial assets contributing in gold per cent
| Of it's asset circulation. Upon the Ialiut'
| Of a bank. its notes shall be immediately
| redeemed from this fund and the tund re-
| imbursed from the assets Of the failed
| hank. Bank notes form first lien upon
the assets and have behind them also the
| individual liability OF the stockholders
| for assessment up TO the amount or their
| stock. Should these sources fail TO fully
| reimburse the fund. the treasury may
/ make an assessment upon the national
] hanks issuing asset circulation 10 REIN
| nurse Il. but these assessments shall not
| tn any one YEAR exceed / per cent. Of
| the asset circulation. ..,
MISCELLANEOUS PROVISIONS.
Effect Upon Old Banks.-EXisting ma
| tional banks may continue 20 do business
| under their present charters upon ac-
! ceptance 81 the new law, but must com
| rlv with the requirement for taking out
/ faf