Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1874-05-14
The Proposed New Currency Bill.

The following is summary of the bill
reported in the Senate at Washington on
the 9th by a majority of the Senate
Finance Committee, as a substitute for
the House Currency bill:
Section provides that Section p of the Ma
tonal Bank act of 1864 be so amended that bank
ing associations snail not be hereafter required to
keep any money on hand by reason of their cir
cuation, but that the amount necessary shall be
determined by the sum of their deposits, and that
as reserve they shall be required to keep in their
vaults e-fourth of the coin received from the
United States as interest the bonds deposited
as security for their circulation.
Section provides that each National Bank shall,
within ninety days after the passage of the act,
keepfts lawful money reserve in Its own vaults at
its place of business and repeats all provisions of
the National Bank act of 1864 conflicting there
with.
Section repeats Section % of said act so far as
il restricts the amount of notes in circulation under
said act and the provisions of the first section of
the act of 1870 prohibiting to banks a circulation
OF over So OOUO; the provisO in the third section
limiting the circulation of banks authorized to is
sue notes redeemable in coin to $1,0U0,000, and
Section relating to the redistribution of the S25
000L 90 of circulating notes.
Section provides that every banking associa-
ton shall have on deposit in the United States
Treasury at all times sum equal to per cent. of
its circulation, to be held and used for the re-
demption 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 so doing.
Section provides that the charter number of
each banking association shall be printed upon the
notes issued to it.
Section provides that the entire amount of
United States notes outstanding and in circulation
at any one time shall not exceed 1882, 600 00O and
further provides that whenever circulating notes
to the amount of 81 000 900 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 30 per cent. thereof, which
shall be in reduction of the maximum of the
1882 600 0U0 fixed by this section; such reduction
to continue until the maximum amount of United
States notes outstanding shall be $500, 600.
Section provides that and after the LIST day
of January 1877, any holder of United States notes
to the amount of 1000, or auy multiple thereof
may present them for payment at the Office of the
Treasurer of the United States or at the office of
the Assistant Treasurer at the city of New York
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
the United States, In such form he may
prescribe, of the denomination Of ffty dol
lars or some multiple of that sum, redeemabe in
coin of the present standard value at the pleasure
of the United States after ten years from the date
of their ISSUE and bearing interest payable quar-
terly in COIN at the rate of per cent. per annum
and the Secretary of the Treasury may issue United
States notes so received, or, if they Cancelled
he may issue notes TO the same amount, either to
purchase bonds redeem the public debt at par
in coin, to meet the current payment for public
service; the said bonds and interest to be exempt
from the payment of all taxes or duties of the
United States as well as from taxation in 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 10 authorize the in
crease of the public debt of the United States.
Mr. Ferry gave notice that the report
d not represent the views of the minor
ity of the committee, and remarked that
he believed the minority of the commit
tee represented majority of the Senate