Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-12-05
National Bank Reserves.
A BILL TO KEEP THEM IN GOLD AND SILvEl



The House committee on banking and cur
rency to-day authorized its chairman, Judge
Buckner to report to the House for passage at
the first opportunity, the following important
bill:
ga bill requiring the reserves of national bank
ing associations to be kept in the standard
gold and silver coins of the United States in
lieu of lawful money.
Be it enacted, de-, That section 5,1s1, of the
Revised Statutes OF the United States. is hereby
Every national banking association, in either
of the following cities, Albany, Baltimore, Bos-
ton. Cincinnati, Chicago, Cleveland, Detroit;
Philadelphia, Pittsburg, St Louis, San Fran
cisco, Richmond, Charleston and Washington,
shall at all times have on hand in lawful money
shall be in standard gold or in silver coins of
the United States, an amount equal to at least
twenty-five per centum OF the aggregate amount
Of its.notes in circulation and ofits deposits and
every other association SHALL at all times, have
on hand, I'm lawful money Of the United States,
one-half of which shall be in standard gold or
equal to at least 25 per centum Of the aggregate
amount of its notes in circulation and Of its
deposits. Whenever the lawful money of any
association in any Of the cities named shall be
below the amount OF 25 per centum of its circu-
lation and deposits, and whenever the lawful
money Of any other association shall be below
such association shall not increase it liabilities
by making any new loans or investments,
otherwise than by diScounting or purchasing
bills OF T. exchange, payable at sight. i, nor make
required proportion between the aggregate
amount of its outstanding notes OF circulation
and deposits and its lawful money OF the United
States in the proportion required as to coin has
been restored. And the comptroller Of the cur
rency may notify any association whose lawful
money reserve shall be below the amount and
proportion OF coin as above required, to be kept
in hand to make good such reserve, and If such
association shall fail for thirty days thereafter
so to make good its reserve of lawful money
and in the proportion aforesaid, the comptroller
may, with the concurrence OF the Secretary of
the Treasury, appoint receiver to wind up the
business Of the association, as provided in Sec
tiOn 1924. Provided, That neither clearing house
certificates nor the balances provided for in sec
ton 5,192, shall be counted or deemed any por-
tion OF the coin reserves required by this act"
Judge Buckner states that one effect Of the
enactment Of this bill, aside from the purpose
indicated by its esewOuld be to abolish the
present distinction between the proportion OF
coin required to be kept as a reserve by national
banks In the cities named and the proportion
required to be maintained by all other national
banks. The main object of the bill is, however,
to effect distribution throughout the country
OF considerable portion OF the coin that has
accumulated in the U. S. Treasury, and Incl
dentally to release corresponding amount OF
the legal tender notes now kept by the banks as
part OF their reserves. The banking and currency
committee also to-day took up the resolutions
introduced in the House few days ago by Rep
resentatiyes Price and Fort but after briefly dis
cussing them, laid them aside for consideration
at a meeting called for next Wednesday. A
prominent democratic member OF the committee
expresses the opinion based upon the tenor Of
the preliminary discussion this morning, that
the committee will probably take no action at
present upon these resolutions, or in regard to
the Presidents and Secretary Sherman's recon-
mendatiOnS therein referred to.