s not exceeding in amount 75 per cent of their
paid-up and unimpaired capital, provided they deposit with the
Government as a guaranty fund, in United States legal-tender notes,
including Treasury notes of 1890, a sum equal in amount to 30 per cent
of the notes they desire to issue, this deposit to be maintained at
all times, but whenever any bank retires any part of its circulation
a proportional part of its guaranty fund shall be returned to it;
to permit the Secretary of the Treasury to prepare and keep on hand
ready for issue in case an increase in circulation is desired blank
national-bank notes for each bank having circulation and to repeal the
provisions of the present law imposing limitations and restrictions upon
banks desiring to reduce or increase their circulation, thus permitting
such increase or reduction within the limit of 75 per cent of capital
to be quickly made as emergencies arise.

In addition to the guaranty fund required, it is proposed to provide a
safety fund for the immediate redemption of the circulating notes of
failed banks by imposing a small annual tax, say one-half of 1 per cent,
upon the average circulation of each bank until the fund amounts to 5
per cent of the total circulation outstanding. When a bank fails its
guaranty fund is to be paid into this safety fund and its notes are to
be redeemed in the first instance from such safety fund thus augmented,
any impairment of such fund caused thereby to be made good from the
immediately available cash assets of said bank, and if these should
be insufficient such impairment to be made good by _pro rata_
assessment among the other banks, their contributions constituting
a first lien upon the assets of the failed bank in favor of the
contributing banks. As a further security it is contemplated that the
existing provision fixing the individual liability of stockholders is to
be retained and the bank's indebtedness on account of its circulating
notes is to be made a first lien on all its assets.

For the purpose of meeting the expense of printing notes, official
supervision, cancellation, and other like charges there shall be imposed
a tax of say one-half of 1 per cent per annum upon the average amount of
notes in circulation.

It is further provided that there shall be no national-bank notes issued
of a less denomination than $10; that each national bank, except in case
of a failed bank, shall redeem or retire its notes in the first instance