of action among the banks; and the cultivation of honorable and friendly relations among the members. SEC. 3. Each bank belonging to the association may be represented by its president and cashier, both of whom shall be entitled to vote, as the members of the association, at all meetings thereof. SEC. 4. The annual meeting shall be held at the clearing house on the second Monday in October, in each year, when a chairman and secretary shall be chosen, by ballot, who shall hold their offices for one year, and until others are chosen in their stead; and whenever, at any meeting, either of them shall be absent, a chairman or secretary pro tempore shall be chosen. SEC. 5. At every annual meeting there shall also be chosen, by ballot, a standing committee of three (not more than one member of the committee from any one bank), to be called the clearing house committee, who shall hold their offices for one year, and until others are chosen in their stead, whose duty it shall be to procure suitable accommodations for the clearing; to provide proper books, stationery, and whatever else may be necessary for the convenient transaction of the business; to ascertain and advise the banks as to their duties and liabilities in case of any doubtful construction of the State or United States laws relating to banks and banking; to investigate and report to the association upon any matters affecting the banking interests, and, generally, to supervise the whole business and interests of the association. Any vacancies which may occur in the committee during. the year may be filled at any meeting of the association. SEC. 6. The cashier of the clearing bank shall be the manager of the clearing, and the settling clerks shall be under his direction while at the clearing house. The hour for making the exchanges shall be at 12 o'clock m. Errors in the exchanges and claims arising from the returns of checks or other cause, are to be adjusted directly between the banks which are parties therein and not through the clearing house. SEC. 7. Each bank belonging to the association shall deposit with the clearing house committee its proportion of a clearing fund. The proportionate deposit of each bank shall be decided by vote of the association. The clearing fund shall be deposited with the clearing bank, free of interest, as a compensation for services rendered, and for the payment of all necessary expenditures of the association. On making its deposit each bank shall receive a certificate therefor, signed by the clearing house committee and countersigned by the manager. No bank shall make the clearings of a bank which is not a member of the association. SEC. 8. No new bank shall be admitted to the association excepting on the recommendation of the clearing-house committee and by a vote of three-fourths of the members; and no bank shall withdraw without giving six months' notice of such intention to the manager of the clearing house. SEC. 9. For cause deemed sufficient by the associated banks, at any meeting thereof, any bank may be expelled from the association and debarred from all the privileges of the clearing house by a vote of three-fourths of the members. SEC. 10. These articles of association shall be signed by the members thereof and by new members hereafter admitted; they may be amended by a vote of two-thirds of the members at any meeting of the association, provided that notice of the proposed amendment shall have been given in writing at a previous meeting and lodged with the secretary. SEC. 11. The secretary shall notify all meetings by giving notice in writing to each of the associated banks; and he shall convene the association whenever requested to do so by any member. NOTE.-Population, 115,000; capital of clearing house, $10,500; banks of $250,000 capital or less loan the clearing house $1,000; those having over $250,000 capital loan the clearing house $1,500 free of interest. H. R. 10339.-FIFTY-FIFTH CONGRESS, SECOND SESSION. IN THE HOUSE OF REPRESENTATIVES, MAY 16, 1898.-Mr. Walker, of Massachusetts, introduced the following bill; which was referred to the Committee on Banking and Currency and ordered to be printed. A BILL To so change the national-bank act as to secure to the people in all sections of the country an equal opportunity to freely use paper money. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter banking associ ations shall not be required, "preliminary to the commencing of the banking business," or in continuance thereof, to "transfer and deliver to the Treasurer of the United States," or as security for circulating notes, any United States bonds; and any national banking association that has transferred and delivered such bonds to the Treasurer may recover such bonds from the Treasurer upon complying with the conditions prescribed for the reassignment of such bonds to associations in liquid tion; and the Treasurer of the United States is hereby authorized and directed to reassign and deliver such bonds to the association from which he received them upon being notified by the Comptroller of the Currency that such association is in compliance with this section of this Act. SEC. 2. That any banking association organized under the laws of any State that shall place on deposit in any banking association in the largest commercial city in the State in which the association is located, or in any other place acceptable to the Comptroller of the Currency, an amount of specie equal to five per centum of its circulating notes that it averages to have in actual circulation for the redemption on demand of such notes, and shall also have in its own vaults, in addition to the amount herein before mentioned, an amount of specie equal to five per centum of its average individual deposits, thereupon the imposition and the collection of the ten per centum tax on the circulating notes of banking associations organized under the laws of any State shall be suspended, so far as they relate to such banking association: Provided, however, That in case such banking association fails to keep good, as averaged for any month, any part of the total amount of specie as is herein required it shall be liable to and shall pay into the Treasury of the United States a tax equal to ten per centum per annum on an amount equal to the amount of the average deficit in such fund or funds for such month. SEC. 3. That whenever any association fails to pay on demand in specie the circulating notes signed by its officers and paid out by it, it shall be subject to and shall pay a duty at the rate of two per centum per annum, one-half on July first and one-half on October first, on a sum equal to the average amount of its circulating notes outstanding and of the individual deposits in such association during such failure and until such payment is resumed: Provided, however, That in case any such association pays one-half of the tax herein imposed on or before the day it is due and payable, the other half shall be, and is hereby, remitted. SEC. 4. That each association shall keep such records and send to the Comptroller of the Currency such reports and submit to such examinations by any agent of the Comptroller, to ascertain whether the association is in compliance with law and the amount of tax due and payable by it, as the Comptroller of the Currency shall from time to time direct, and the expenses of such examination shall be paid by such association. H. R. 10333.-FIFTY-FIFTH CONGRESS, SECOND SESSION. IN THE HOUSE OF REPRESENTATIVES. MAY 13, 1898.-Mr. Walker, of Massachusetts, introduced the following bill; which was referred to the Committee on Banking and Currency and ordered to be printed. A BILL To so change the national-bank Act as to secure to the people in all sections of the country an equal opportunity to freely use paper money. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter banking associations shall not be required, "preliminary to the commencing of the banking business," or in continuance thereof, to "transfer and deliver to the Treasurer of the United States," or as security for circulating notes, any United States bonds; and any national banking association that has transferred and delivered such bonds to the Treasurer, upon depositing lawful money, in compliance with section two of this Act, may recover such bonds from the Treasurer upon complying with the conditions prescribed for the reassignment of such bonds to associations in liquidation; and the Treasurer of the United States is hereby authorized and directed to reassign and deliver such bonds to the association from which he received them upon being notified by the Comptroller of the Currency that such association is in compliance with section two of this Act; and in place of United States bonds, as heretofore required, banking associations shall deposit lawful money in amount sufficient to take out the United States legal-tender circulating notes described in section two; and the taking out of such notes is hereby required of such associations preliminary to the commencing of the banking business. In places of less than four thousand inhabitants, with the permission of the Comptroller of the Currency, banking associations may be organized with a paid-up capital of not less than twenty-five thousand dollars. The word capital as used in this Act shall be held to mean the sum of the nominal capital plus the surplus and undivided profits of associations, and as shown by the last published annual report of the Comptroller of the Currency when such items concerning the bank in question are published in such report. SEC. 2. That upon the delivery of coin, coin certificates, or United States legal-tender notes, including Treasury notes, to the Treasurer of the United States in sums of one hundred dollars or any multiple thereof, and in amount equal as near as may be to twelve and one-half B & C 16 per centum of its capital, thereupon it shall be entitled to receive from the Comptroller of the Currency United States legal-tender notes of different denominations, having printed on their reverse side the circulating note of the association, in blank, registered and countersigned as provided by law, equal in amount to the coin, coin certificates, and United States legal-tender notes, including Treasury notes, delivered; and any association may at any time increase such delivery of such moneys to an amount equal to one-half of its capital, and receive such circulating notes thereon to the amount of such delivery of such money. The promise of the association receiving and issuing such notes to pay the same on demand shall be attested by the signature of the president or vice-president and cashier or assistant cashier before being issued by it. The Secretary of the Treasury is hereby authorized to issue United States legal-tender notes of the Act of March third, eighteen hundred and sixty-three, to the amount necessary to carry into effect the provisions of this Act. The lawful name and description of the notes issued under this section shall be greenbacks. SEC. 3. That the Comptroller of the Currency shall issue, in blank, circulating notes of different denominations, to any association, and the association may issue the same in addition to the greenbacks described in the preceding section equal in amount to the amount of the greenbacks taken out by it until the setting aside of the gold in the Treasury of the United States to redeem certain legal tender notes as described in the section next succeeding. Thereafter he shall issue to any association, and the association may retain and issue, the notes described in this section at his discretion, but not less in amount than the amount of the greenbacks taken out by such association, and not less in amount than twenty-five per centum in excess of the amount upon which a tax was assessed and paid in the two years next preceding, and not to exceed in amount the amount of its unimpaired capital. Each association taking out the notes described in this section shall add to its current redemption fund and keep therein a sum in lawful money equal in amount to five per centum of such notes it averages to keep in circulation as found from time to time; such five per centum, together with the five per centum mentioned in the next section, shall be held for the redemption of its greenbacks and notes issued to it under this section. That the lawful name and description of notes issued under this section shall be currency.* All currency shall have printed on its reverse * Net assets of national and State banks, in capital, $1,350, 000, 000 1,095, 377, 992 Profits to bank on currency under existing law and conditions, about one-fourth of 1 per cent. As all taxes except one-fifth of 1 per cent, safety fund tax, are removed, the average profit, taking the country over, under this bill, on the currency kept out, would be about 6 per cent. Nothing is gained on the greenbacks and 6 per cent on the reserve notes. The currency issued is not "reserve certificates." It is in no sense "issued against the reserve held." They hold exactly the same relation to the "reserve held" as any other liability of the banks. For each $95 of old issue of greenbacks that are redeemed and destroyed, $100 of new greenbacks are issued and $100 of currency, making $200 of currency for each $95 retired. side the statement that it is to be finally redeemed and paid by the Treasurer of the United States. The Comptroller of the Currency may cause a supply of currency and of greenbacks to be printed for associations in anticipation of immediate delivery to them. SEC. 4. That the Treasurer of the United States shall forthwith redeem and destroy existing United States legal-tender notes issued under Acts passed before July first, eighteen hundred and ninety, and put in circulation previous to the passage of this Act, in such manner as he may deem proper, equal in amount to ninety-five per centum of the aggregate of the coin, coin certificates, and United States legaltender notes, including Treasury notes, received for greenbacks issued to banking associations; and the Treasurer shall set aside five per centum of such aggregate, which, together with the five per centum mentioned in the previous section, shall be held for the current redemption of the greenbacks and currency of the association making such deposit. * When there shall be no more in amount of United States legal-tender notes outstanding issued before July first, eighteen hundred and ninety, than the amount of the gold then held by the Treasurer that may be used for the redemption of such notes, the gold so held shall then be set aside by the Treasurer of the United States and used only to redeem such notes, which notes upon being so redeemed shall be destroyed; and from and after thirty days from the setting aside of gold herein mentioned such notes shall not be used by any banking association in redeeming its notes, or be counted in the reserve fund of any national banking association, or be a legal tender for any debt due and payable in the United States excepting for duties due and payable on goods imported into the United States.† That upon the setting aside of the gold herein directed, a sum of money equal in amount to all moneys subsequently paid into the Treasury of the United States in exchange for greenbacks shall be held in the Treasury as a separate fund, out of which the Treasurer shall, from time to time, redeem greenbacks held by certain associations in amount and manner as follows, to wit: When such funds shall amount to one per centum of the total amount of greenbacks taken out under this Act by associations before the set *Outstanding United States legal-tender notes... $346, 000, 000 146, 000, 000 Total legal-tender notes to be assumed by banks.. 200,000,000 to relieve the situation. Thus, when the banks have assumed the current redemption of only $200,000,000 of legal-tender notes, the Treasury will be wholly relieved from paying gold on any form of paper money, and it will be a matter of as much indifference what the Government pays out as in the case of any private citizen. Visible gold on January 1, 1899: In United States Treasury. In national banks.. In State banks, trust companies, etc. (estimated) Total commercial gold... $246, 973, 000 266, 464, 000 266, 000, 000 779, 437, 000 This provision is designed to bring legal-tender notes into the Treasury for redemption. |