The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1884-11-29
CURRENCY BILLS.
AN IMPORTANT QUESTION To or
SETTLED. q
o f'iiis Relating to the National 1,,,,,,
currency and Their Provisions-
heavy Possible Decrease of
Bank Currency.

yF >5hicAGo' Nov. 29.--The Inter Orsan,,
aShi'igton City special saws: The con,r-
Sioiier OF Tie currency estimates tbo+ ,,,,Ial,.
cessation shall be shortly had which vii
enable the National banks To iec,o =.
rod,'aaa - lI"lt' circulation will hereafter be
.oN ao u, LAe rate Of at least $40, 900 900 ner
ot+o,,4i, nc question attracted considerable
go "t the last session of congress-
o several measures We're brought for.
ha lu 70 avert rapid contraction of
n.'iA circulation. The most prominent
'neSe measures were thosa miro
l00uceo by Senators Mcpherson. Of New
Jersey and Aidrich of Rhode Island an,
representative Potter, of New York Tho
Ncl herson bill provides that any nationaI
"dhhliis association shall he entitled 10 r,-
oi'o rom the comptroller Of tho cnrrencv
t,'0'lit'ils notes not exceeding in amount
'uo tII value Of tho bonds depos;ted
Gnu ''i'o the total amounts OF such
MUGS iSS0ed TO any association sh,y
i'oI exceed the amount Of its mia
III capital stock. The bill passed ;ha senate
ana was iavorably reported to the b,us, r,,,
use banking and currency COMMITTEES and +.
"'" upon The calendar of the house In
t,'S' IL SHOULD become law it would incsease
t y'io aggregate circulation of the national
1''''"9 oron the basis of tie present
| " y, OK intel States bonds with
| 'no treasurer IN trust TO the amount Of
| """u1 e"3o000l0, and would increase fine
| pfoit TO The banks on circulation from ~ IN
90 Oh per cent. per annum. No doubt tbe
increased proHs which by this bill woul1
more To the banks would induce tbnsa bol4
ing Is 10 continue to hold them. and tha
profits would probably be sufficient in in
dUco banks wa!1h hold IS to rer,Iare 1ben,
when ca!leu tvr redemption with per co,ts
Inc passage oil this liz sconls a sinnIa and
| feasible measure of relief 10 the hanks AMI
while II Is possible that some bill which nro
vided t"f ,uv tunJig, OF the high-rate bond,
INTO bonds Tearing a lower rate of Interest
| "oulu AFFORD more permanent relief tn.
OH Oh senator Mcpherson is regarded as AZ
eNeenoht measure by the comptroller, ana
would ho0 Interfere with any funding bill
"h1'h might hereafter become a law.
Inc biiI introduced by Senator Aldrich
provides for the exchange OF 1 Der cents fo,
" per cent bonds having the same time +,
run, Under its provisions the govern
ment pays a difference OF IS por cent
between the per cent, and the IS The bill
also provides for the issuance of circu
latlon equal in amount to fin
par value OF tine bonds deposited TN
additional profits a2cryia- uu,se.. this bill !
1t should become law would be from abop
= Of per cent to about ! per cent. per an
mum, according to the bunk rates for loan
ON the per cent. bonds which replace tn
Tours, and it is believed that this would be
permanent measure Of relief to the banks.
The bill introduced 10y Mr.. Potter in tn
house.provides for the refunding of the
L and "a per cent. bonds into = !, per cent
payable at same time, aud to he redeeme
IL the same manner as those for which the
are exchanged. THE bill also provides TO
the reduction Of the tax upon circulation
based upon the proposed % pe
cent bonds OF one-half OF pc
cent, per annum, while the tax upo
circulation based upon all other classe
Of United States bonds, ramnins at ] Ie
cent. p2r aunum. Under this bill the prt
visions for obtaining currency on the bond
deposited would be the same as under tt
present law, namely, 80 per cent Of the pa
value of the bonds deposited The bill 50 ia
as the funding Of the high rate bonds is COZ
cernel is similar to the Aldrich biz, Ii
latter providing for the refunIing of the 1
only.