Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-12-06
NATIONAL NOTES.
A Bill for Equalizing Reserves of National
Banks-MiscellaneOus. ..-7
FINANCIAL.
OPENING THE TREASURY VAULTS.

OfENIN0 1dE IbEA6UHY VAULTS
WASHINGTON, Dec. 5.-The House committee
on banking and currency to-day authorized it's
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 1t Enacted, ETC., That section 5,19l, re-
vlsed statutes of the United States, is hereby
amended 80 as to read as follows: Section ,19l
Livery national banking association in
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 it's 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 or silver coins
OF odn,, the o. I'm, United ~ States an: 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 bo5 below the
amount of rs per cent, of it's circulation and
deposits, and whenever the lawful money of any
other association shall be below Is per cent. of
its circulation and deposits such association
shall not increase its liabilities by making any
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
a mt nf r&,So
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 currency
may notify any association whose lawful
money reserve shall be below the amount and
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 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 5,192 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
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 considerable portion of
coin that has accumulated in the United States
treasury, and incidentally to release CORES
ponding amount of legal tender notes now kept
by banks az 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
and Fort, but after briefly discussing them
laid them aside for consideration at a meeting
called for next Wednesday. prominent
Democratic member of the committee expresses
opinion, based upon the tenor of the prelim-
mary discussion this morning, that the COM
mittee will probably take no action at present
upon these resolutions or in regard to thePresi-
dents and Secretary Sherman's recommends
lions thereto referred to.