The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-10-13
Kansas Senator Would Redeem
National Bank Notes.
Make Guaranteed Credit Note
Good as Bond Secured Note.
FOR THE NATIONAL BANKS
Those i'm Good Standing Can
Issue New Notes.
That Is, if the Bristow Bill Gets
Through.

| Senator Joe Bristow of Kansas has
| introduced a bill in the senate for the
| issue and redemption of national bank
guaranteed credit notes. The text of
| his measure follows:
THAT from and after the passage of
this act any national banking associa-
ton having 100000 capital, which has
been in business for one year, and has
surplus fund equal to 20 per cent of
| its capital, may, in addition to it's
bond-secured circulation, take out for
issue and circulation national-bank
notes without a deposit of bonds as
now provided by law. These notes
shall be issued in the same form and
appearance and denominations as the
bond-secured national bank notes.
The amount of the notes so taken out
by any national banking association
may not exceed 100 per cent of the
amount of its capital stock.
That every national banking asso-
citation taking out notes, as provided in
the preceding section, shall pay to the
treasurer of the United States. in the
months of January and July, a tax at
the rate of five per centum per annum
upon its average circulation in excess
of the amount of it's bond-secured cir
culating notes outstanding during the
preceding six months.
That said taxes so paid shall con-
stitute an expense or guaranty fund
to redeem notes of failed banks and
to pay cost of printing and REDEMPTION
That on all of such unsecured notes
not provided for by deposit of lawful
money with the treasurer of the Unit
ed States at the end of six months the
rate of tax shall be increased to six
per cent, and on all of such unsecured
notes not provided for by deposit with
the treasurer of the United States at
the end of nine months the rate of tax
shall be increased to seven per cent
per annum, and after twelve months
the comptroller of the currency shall
order the retirement of such notes
In the event of the failure of any
national bank its circulating notes I'M
secured and outstanding shall be re-
deemed in the same manner as if pro-
vided for and charged to the expense
or guaranty fund, and the treasurer OF
the United States shall for any notes
of failed bank so redeemed have
claim as a preferred creditor and first
lien on the assets of said bank, and
any amount recovered shall be credited
back to the said fund
THAT any national banking associa-
ton taking out notes in excess of its
bond-secured notes shall maintain on
deposit with the treasurer of the Uni
ted States an amount equal to 5 per
per cent of such notes for a redemption
fund. as required for redemption OF
bond-secured notes. and redemption of
such notes shall be in all respects the
same as for bond notes.
When any national banking associ-
alton desires to retire any part of its
notes it shall pay such
amount to the treasurer of the United
States, and tax on such amount shall
then cease. and such notes in excess
of bond secured notes may be retired
at any time without regard to the laws
regulating the retirement of bond-se
cured notes"
The senate has confirmed Elmer H. |
Epperson for appointment as postmas-
ter at Scott City, Kan.
Herman E. Jewell has been appoint
ed postmaster at Arlington, Kan,
postoffice.