Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1890-09-20
NATIONS CAPITAL.
Bill 10 Reduce Amount Of Bonds
Deposited by Banks.
Much Troghls il Securing a Quorum in
lhe House.
Secretary OF the Treasury Replies TO
Senator P,umbs Resolution.

WAsHISGros. sept. l9.-In the Senate
the following bills, among other, were
passed Hoase bill 10 discontinue tie co H.
age Of 81 zad 81 gold pieces AID cent
ickel pieces House bill 10 ameal section
500 Of the Revised Statutes AID provide
for the design Of authorized devices fer
| nit States c0insge, House bin II re-
duce the amount OF Uniged Sistts bonds
sqaiFed OF NATIONAL banks, AMI restore 10
the ohAnrei' of trade excessive secumula
.ion-, she is~fli money in Tie treasury
asi g been reached
sherman srok. Of Tie importlnce of the
hiil a 4 .ai he TAD zee iyti many lalters
ard 'el. stans from busiress mer from all
parts u he United aes. urging its ra.-
sage lie hs! baen egiiioized by the IL vs.
papers for not pressing il Gu the attention
of the SENATE He had not been able 10
DO 20 or account Of the tariff bill and the
order Of business WAS agreed upoB lie
said the b Il tad not been smothered. il
hal been u port, q back favorAtly over tso
msaths age and since then has been on the
calenlaf lie believed its passage woul
terd yely muca TO quiet even the present
agitation IN the niouey market Tie sec.
onl section would allow An incr ase in
rational hsnk notes of / | or II millions b .
au,hotiz NJ circulation TO iuil face value,
instead Of 50 per cent. Of the bonds ds
pnsted TO secure circulation lie could
not tell what the effect Of the first SECTION
wculd be, which reduces the compulsory
quiremeut Of bond deposits TO sl,0GO,
because If tie bonds u be ~thdravn were
old il would tend to reduce the circulation.
A. the banks now had right to retire cir
cultt on ant sell their bonis it seemed 70
hm that process hai been going On, Snl
the passage Of this bill would tend 10
check il sad induce the national banks u
issIe circulation to the fell amount OF
thc,r 10 DDS Deposited As Il mater OF
couise national banks would have 10 81
cut OF existence when four per cent. bJnls
se:e pad ualess some ether meth ID
VAS sIsed. Undoubtedly the e1cc. of
the bill would be not only TO prolong but to
encourage i5e national Jnnk system. Il
was not bill which could be considered
Vi der the five minute rule.
Plumb said the bill had merit 10 a Ger.
tam txteni, bat h feared That il would |
finally resl!t in he coatractio1 of curren-
cy. While he agreed that the rational |
eanktrg system, az n system of disCoul II !
and deposit was wise and ought to be con- |
tiuued. it YVES plain 10 be seen that it IA not /
ng 10 he the system having relation 20
currency. The banks thems elves. wanted |
20 get out OF that business and the public al
some rights in The mat or.t tongress coul mot /
afford 10 let national bark currency disap- /
pear without supplying currency in
pl ace He believed that the business Of |
the cOnuiry was in greater peril taan II had |
been for years from the lack OF sufficient .
Cjrenlatiag medium. Disaster might be |
avoided but the courtry was dangerously !
near it nov ard would cortnnc so until It |
had larg4r volume of currency. Plumb |
gave as a reason for thinking tina. the re-
sui. of tie bin voulI he to contract cur
ren.y, that ,he bill would give bsnks tae
authority t, reduce iheir deposit Of bonds |
(ia order 30 re:4ia their charter from tna |
amount nov required running ffom SIP. |
800 ID SJuCuo1 TO $1,000
Wou:dn't banks which baye bonds |
On deposit. to secure circulation, rather in. |
crease their ISSUE to til. full amount OF
bonds.
Punb some would and some would !
uot. The trouble is ~. question of the |
volume OF currency is dec.dei now in the /
interest OF The har ks aud not in the inter, $.
OF ticiullic. feel perfectly certain tha; |
oeerly all tho backs in ;hc West would re-
dyre ,heir bords ~ fast As they could.
Power moved TO strIke out the list Gee
ton ne 'ur!ng to $1,000 the de3osit b.nls
t. retain chsrtcrs).
Sherman said he hsd II, objection to hav- |
ing III fist section .truck ont ani uas-i4e I
tas hin with the scsonl sec On slon-.
which would adj 10 per cent. to back CIR
cuiation.
Piati yave Il as hi. opjni1n that the banks /
of Nav E,p!snd woull avail themselves I
Of she adddonal circulation the s.c,1d /
sert.ou of the hi would g,,r them. II