John G. Car lisle

when Secretary of the Treasury proposed that banks be permitted to i ue circulation up to 75 per cent of the paid-in capital upon the deposit of 30 per cent of the amount of circulation with the Treasurer of the United States in the form of United States notes and Treasury notes. A guarantee fund of 5 per cent was to be accumulated for the immediate redemption of notes of failed banks, encroachments upon this fund to be made good by a e ment, pro-rata, on the other banks in the case of a final deficiency in the a ets of the failed bank. It has also been suggested that safety and elasticity might be obtained by delegating the authority to i ue notes to the = “ws clearing houses of the large cities or to clearing houses to be established by states, thus giving to the notes the security of the combined strength of the banks so a ociated. 36