Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-12-06
NATIONAL NOTES.
A Bill for Equalizing Reserves of National
Observation-Disclosures
FINANCIAL.
OPENING THE TREASURY VAULTS.


WASHINGTON, Dec. 5.-The House committee
on banking and currency to-day authorized its
chairman, Judge Buckner, to report to the
House for passage at the first opportunity the
following important bill:
A bill requiring reserves of national bank
ing associations to be kept in standard gold and
silver coin of the United States, in lieu of law
full money. ~.
Be it Enacted, etc., That section 5,19l, re-
vised statutes of the United States, is hereby
amended so as to read as follows: Section 5, 19l
Every national banking association in
either Of the following cities: Albany, Balti-
more, Boston. Cincinnati, Chicago, Cleveland,
Detroit, Louisville, Milwaukee, New Orleans,
New York, Philadelphia. Pittsburgh, st. Louis,
San Francisco, Richmond, Charleston and
Washington shall at all times have on hand in
lawful money of the United States, one-half of
which shall be in standard gold or silver coins
of the United States, an amount equal to at
least Is per cent. of the aggregate of the
amounts of its notes in circulation and its de-
posits, and every other association shall at all
times have on hand in lawful money of the
United States, one-half of which shall
be in standard gold OF silver coins
of the United States, an amount
amount of its notes in circulation and of its
deposits.
Whenever the lawful money of an association
in any of the cities named shall be below the
amount of as per cent. of its circulation and
deposits, and whenever the lawful money of any
other association shall be below Is per cent. of
it's circulation and deposits, such association
new loans or discounts, otherwise than by dis
counting or purchasing bills of exchange pay
able on sight, nor make any dividend of its
profits until the required proportion between
the aggregate amount of its outstanding
notes of circulation and deposits,
the proportion required as to coin, has been
restored, and the comptroller of the currency
may notify any association whose lawful
money reserve shall be below the amount and
proportion of coin, as above required to be
kept on hand, to make good such reserve, and
if such association shall fail, for thirty days
thereafter, to make good its reserve of lawful
money in the proportion aforesaid, the comp
troller may, with the concurrence of the secre-
tary of the treasury, appoint q receiver to wind
up the business of the association as provided
in section 1924, provided that neither clear
ing house certificates nor the balances provid-
ed for in section 5,l92 shall be counted or
deemed any portion of the coin reserves re-
quired by this act.
Judge Buckner states that the effect of the
enactment of this bill, aside from the purpose
indicated by its title, would be to abolish the
present distinction between the proportion of
coin required to be kept as a reserve by ma
tional banks in the cities named, and the pro-
portion required to be maintained by all other
national banks. The main object of the bill
is, however, to effect the distribution through
out the country of a considerable portion of
coin that has accumulated in the United States
treasury. and incidentally to release a CORES
ponding amount of legal tender notes now kept
by banks "a part of their reserves.
The banking and currency committee also to-
day took up the resolutions introduced in the
house few days ago by representatives. Price
laid them aside for consideration at meeting
called for next Wednesday. A prominent
Democratic member of the committee expresses
opinion, based upon the tenor of the prelim-
mary discussion this morning, that the CON-
mittee will probably take no action at present
upon these resolutions or in regard to thePresi-
dents and Secretary Sherman's recommends
tions thereto referred to.