Baltimore plan. The name applied to a plan presented at and approved by the convention of the
American Bankers' Association in Baltimore in 1894, wherein it was proposed to repeal the
requirement in the National bank act for the deposit of government bonds in the Treasury to
secure circulation (national bank notes) ; to allow banks to issue notes to the extent of one-half
their paid-up and unimpaired capital, these notes to be subject to an annual tax of 1-2 of I per
cent; and to allow banks to issue "emergency circulation" to the extent of 25 per cent additional,
the additional circulation to be subject to a heavier tax. A guarantee fund of 5 per cent was to be
established by the banks to be held by the Treasury for the redemption of notes, and circulation
was to be a first lien upon the assets and upon the liability of stockholders of banks, which liability
is for an amount equal to and in addition to the par value of the stock owned by stockholders.