Arizona republican., 1902-03-10

, per cent of their capital shall at the same time surrender to the United
 States treasurer an additional amount
 of United States notes equal to ten per
 cent of their capital, which shall at
 once be redeemed from the gold in the
 general fund of the treasury and shall
 not be reissued but shall be cancelled
 and destroyed. The committee eX-
 plaim in this connection that twenty
 per cent of the present national bank
 capital is $130,000.000 the exact amount
 of United States notes for whose re-
 demption the banks would be resp0ns-
 ibie if every national bank should as
 sume it's share of such redemption One-half of this amount, 5000, 000 would represent the United States notes that the banks would at the same time pjresent to the treasury department for redemption. This would relieve the treasury from the burden of redeeming sl95, ,000 coo of United States notes. The remaining $151.000000 of United States
 notes would be amply covered by the S150.000 000 of gold in the reserve fund | of the treasury, inasmuch as several
 million of United States notes have been lost or destroyed.
 | Any national bank that has not as stunned current redemption of United l States notes may, when $195 900. 900 have been provided for, issue circula- i tiCn as above described but, upon the ! first twenty per cent O; it's issues it i shall be taxed one and one-quarter per
 cent per annum instead of the tax of one-fOurth of one per cent per annum paid by banks assuming United States notes. The bank notes not based on government bonds aie to De guaranteed ! by a fund consisting of United States bonds CT gold coin equal to five per cent of all notes outstanding and this fund 1 is to be used only for the payment of
 notes of failed banks. The taxes on circulation and interest on public de l pOSits are also to be added to the guar anty fund and any excess of the fund ! above ten per cent of all notes issued
 may be used to cancel and retire United States notes. The total amount
 Oi circulating notes of all kinds shall not at any time exceed the amount of the banks paid up capital and they shall he a first lien upon it's assets. The bank notes authorized by this bill shall be redeemed in gold over the counter of the issuing bank and in or i der to insure their speedy redemption | the country Is to be divided into clear ing house districts. National banks
 receiving the notes of banks outside ! their own district shall not pay them
 out again unless the bank of issues has
 an agency in such district for the re- demption of its notes. but shall forward them for redemption to the district where they belong.
 The provision directing the secretary
 or the treasury to exchange gold for silver is intended to strengthen exist ing law by keeping all form of govern ment money at parity with gold; and any additional burden upon the gold
 reserve is avoided by limiting issues of
 silver certificates to five dollars and less and of bank notes to ten dollars and upwards, so that no considera ble
 number of certificates could at any time be collected and presented for re- demption.
 | The secretary of the treasury is authorized to deposit all public money i in excess of S5O,OOO,OO in national banks, the banks to pay interest 1 thereon at the rate of one per cent per | annum.