The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1874-05-21
The Proposed New Currency Bill.

The following is summary of the bill
reported in the Senate at Washington on
the 9Th by majority of the Senate
Finance Committee, as substitute for
the House Currency bill:
Section provides that Section 81 Of the Nationa
Bank act OF 1854 be 80 amended that banking as
sociatiOns shall not be hereafter required to keep
any money on hand by reason OF their circulation,
but that the amount necessary shall be determined
by the sum of their deposits, and that reserve
they shall be required to keep in their vaults one
as interest on the bonds deposited security for
their circulation.
Section provides that each National Bank
SHALL within ninety days after the passage Of the
VISIONS ia Rlacs 9f business, and repeals all Pro
ing Herewith "'""'ct-
Section repeats Section - Of said act so far ss
1t restricts the amount Of notes in circulation under
the act Of 1870 prohibiting to banks circulation
Of over $500 goo; the provso in the third section
limiting the circulation Of banks authorized to is
Section s relating to the redistribution Of the
rs ,OO0, goo Of circulating notes.
Section provides that every banking assOcia-
ton shall have on deposit in the United States
it's circulation, to be held and used for the redemp-
ton of such circulation.
Section provides for the withdrawal Of circula-
ton and the surrender of bonds to any association
desiring, and prescribes the manner Of 80 doing.
Section provides that the charter number of
each banking association shall be printed upon the
notes issued to 1t.
Section provides that the entire amount of
United States notes outstanding and in circulation
at any one time shall not exceed $382 600 OOO and
further provides that whenever circulating notes
to the amount OF 600 600 shall be issued to bank
ing associations it shall be the duty Of the Secre
tary of the Treasury to retire amount Of United
States notes equal to so per cent. thereof, which
ehal he in reduction Of the maximum Of the
$sS2, 600, O0a fixed by this eection such reduction
to continue until the maximum amount Of United
States notes outstanding shall be $500, U0O,O 0O.
Section provides that on and after the 1st day
of January, 1871 any holder Of United States notes
to the amount Of 81 900. or any multiple thereof,
Treasurer Of the United States Or At the once Of
and thereupon the Secretary Of the Treasury SHALL
in exchange for said notes. deliver to such holders
an equal amount of coupon or registered bonds of
"a such form he
lars or some multiple Of that sum, redeemsble in
coin Of the standard value at the pleasure Of
the United States after ten years from the date of
in coin, At the rate Of 5 per cent per annum, and
the Secretary Of the Treasury may issue United
States notes so received or, II they are Cancelled
purchase bonds or redeem the public debt, at par
In coin, to meet the current payments for public
service; the said bonds and interest to be exemp:
the Of al taxes Q, duties Of the
any form by State, municipal, or local authority !;
said bonds to have set forth and expressed upon
their face these conditions and with their coupons
be made payable at the Treasury Of the United
States; the Secretary Of the Treasury, in lieu of
said bonds may redeem said notes in gold coin of
the United States.
Section 10 provides that nothing contained in the
act shall be construed to authorize the increase Of
the public debt Of the United States.
Mr.. Ferry gave notice that the report
did not represent the views of the minor
ity of the committee, and remarked that
he believed the minority of the committee
q majority of the Senate.