The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1874-04-30
Speech Of Hon. J. III. Platte, jr.

LII tllC l1OuSc u Representatives. Ou GiiC I'll
inst, Hon. J. H. Platte, jr., member Of Con
gress, from the Norfolk, Virginia, district, adj
dressed the House on the Currency and Free
Banking question. His remarks were entirely
impromptu, but evidence a perfect familiarity
with the subject discussed. After renewing
the history Of the United States Bank and the
Bank OF England, he came to the point of his
speech, and that was the presentation of the
bill he had introduced in favor Of an Exchequer,
whose provisions and advantages are detailed
as follows:
Now propose, as briefly as possible, to ex-
| plain the provisions Of bill which | hope the
Committee on Banking and Currency may see
fit to report favorably at some future day. after
Congress has adopted the bill which they have
already reported, or something else which we
hope may reach the desired result.
| My proposition is this that there may be in
corporated bank with capital of 300, 900, 900.
1 do not propose to have it Interfere with the
free-banking institutions that may be inaugu-
rated under the operation of afree-banking law,
should Congress pass one. I believe that it
will work in entire harmony with those banks,
| and will work very much better with our pres
ent system of national banks than the old Bank
of the United States worked with the State
banks then in existence. I believe it can be
made to carry out and perform very important
functions in connection with our national banks.
1t may be made to take the place, in relation to
the national banks Of the country, that the old
Suffolk Bank of Massachusetts, occupied in the
history Of the banks of that State, when it was
the redemption agent of every sound bank in
the New England States. I would, however,
permit the national banks to receive the reser-
we'd 10 per cent. of circulation now withheld,
and give them an amount of currency equal to
the amount Of bonds deposited. This would
add forty millions to our circulation. | would
also release them from the requirement Of hold
ing reserve on their circulation.
The bill l propose provides for the incorpora-
ton by Congress Of a national bank to be known
as the Exchequer OF the United States Of Amer
lea, with capital of $100, 900, 900, in shares Of
81. 900 each, of which the United States shall
subscribe one-forth that the chief office shall be
in New York, with branches at Boston, Phfla-
delphia,' Baltimore, Charleston, South Carroll
na,) Savannah, Mobile, New Orleans, Memphis.
Galveston, St. Louis, Louisville, Cincinnati,
Chicago, San Francisco, Portland, Richmond,
| virginia. and such other points as may here
after be determined upon, with an equitable
distribution of the capital; that books of sub
scription shall be opened at such time as may
be designated by the corporators at all of the
principal cities Of the country under the super
vision OF three commissioners at each point,
who shall be appointed by the corpofators, the
subscriptions to be paid three-fourths in legal
tender notes and one-fourth in coin Of the Uni
ted States, 10 per cent, to be paid at the time
of making the subscription; that if after sale
books have been open certain number OF day;
the whole capital has not been subscrib
ed, then any national bank now exis
ing may subscribe upon the same terms
} the whole or any part of it's capital and consol
idate and become merged into this corporation
provided that it thereby abandons its presen
organization and winds up its present exis
tcnce, and its owners accept in lieu OF theil
present shares in any such bank shares in this
corporation of equal value. If more than on,
: thousand shares are subscribed for upon TIN
terms mentioned, then the number OF shares tt
be divided pro rata among the subscribers
After thirty days notice the stockholders shall
meet in New York, and elect board of nin
: managers for the chief Office in New York, ant
| five for each branch-each share voting on
vote. The board for the chief office shall cleo
= the governor thereof, and the board for eael
$ branch to elect the governor thereof, each tt
: hold office for one year.
The corporation thus created shall be divide
into two departments the one for the bushes
of banking exclusively, including the discoun
of negotiable notes, bills of exchange, drafts
and other evidences of debt limited to twic
the amount OF the capital, except upon obliga
, lions of the Government of the United States
D and to J Of per cent. per month as the rate 0
interest for thirty days; the other department
shall be the issue department, which shall con
sist of three commissioners for each branch an
S the chief Office, one appointed by the Presiden
t Of the United states, with the advice and con
: sent of the Senate. one by the governor OF tn
State in which the Office is located, and one ap
4 pointed by the governor and managers OF tn
I office or branch for which he Shall act; thes
commissioners to give such bond and securit
+ as the proprietors shall name Whenever tn
r banking department shall DELIVER gold coin O
: the United States to the extent OF one-fourtl
: of the amount required and THE other three
fourths in the bonds of the United States bear
5 ing per cent. interest, the commissioners Q
: the issue department shall issue to the govern
: or and board OF managers OF the banking de
+ partment an equal sum in exchequer notes un
It til hessissue shall in the aggregate reach tn
Q sum of 5000, 900, 900. After notes to this amor
7 have been issued the commissioners OF the i.
\ sue department shall require one dollar in gol
e and TWO in United States bonds bearing pc
n cent. interest for every three dollars OF note
issued above $20o,oOo,0o0, until the sum {
= S40O, 900 shall have been issued; for th
next 5000, 600, 900 to be issued in notes the PR
= portion must be half gold and half bonds; an
/ if any more issues shall be made after reachin
II $500, OOOO 900 there shall be one dollar in gol
/ paid in to the issue department for every do
J lar of exchequer notes issued to the bankin
: department.
l. Each note issued shall be for five dollars (
: some multiple thereof, and shall be legal tel
| 2 -. e., x111 H. >kr =