The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-11-16

President, Secretary of the Treasury. Con-
troler and other financial officers of the
administration with the view of proposing
legislation which will meet the necessities
or the government and provide for a larger
and more convertible circulating medium
without involving any Of the financial and
political embarrassments that grew out of
a revival of the fiat money days.
Mr.. Springer has just LETT the city after
the administration, Mr.. Voorhees, and the
financial officers of the Treasury Depart
ment, and, it is expected, will, in connec-
ton with his committee, submit to the
House important legislation on this sub
ject Immediately after the reconvening or
Congress. Warner, Sperry and the leading
Republican members of the House COM
mittee on banking and currency are under
stood to be Mr.. Springer's active colabor--
ers, and 1t is quite generally conceded
law can only be the result of harmonious
action between the two political parties,
and will not be credited as the marked
copy of the measure understood to be UNI
der consideration by himself and colleagues
Mr.. Springer stated hat it would not be
given out in detail until after it had met
the full approval of the various other MEM
bers of the committee over which he pre-
sided.
Eve have been engaged for several
months,' said Chairman Springer, lin the
preparation of a measure which at the
proper time L will Introduce in the House
and have referred to the committee on bank
ing and currency, Of which l am chairman.
Our object is TO respond, as far as possible,
to the reasonable demands of the country
for a better system Of currency, and to pro-
vide some plan by which our currency may
be placed upon q better basis. Any effort,
in my judgment, to return to the system of
State banks which prevailed before the war
would be futile, and even If the ten-per-cent.
tax on State bank circulation should be
removed it would furnish little or no relief
to the country. The reason of this is OBJ
viouS. A great many states IN the Union
have adopted constitutional provisions pro-
hibiting the charter of banks in those States
for the purpose of issuing or with authority
10 issue circulating notes, Such notes,
therefore, could only be of local value, and,
while some States would provide a safe syS-
tenn, the experience Of the past shows that
irredeemable issues of paper money would
flood the country; that counterfeiting would
be universal, and the currency system of
the country would be thrown into confusion.
What is required and demanded by the
country is a national currency which shall
at all times be convertible into coin on de-
SUFFICIENT in volume, and so distributed
throughout the country as to respond to the
wants of trade and prevent congestion in
the great money centers.
L don't think the present national bank
Ing system mas proved itself adequate 10
the demands of the country" continued
100000 of national bank notes now in cir
culatlon,- and there is no prospect of an
bic legislation to the banks is secured.
The government having practically re-
lieYed the banks of the responsibility Of re-
deeming their own notes, and the expert
ence OF the past demonstrating that the
people do not look to the BANKS for re-
demption, L do not see why this needless
operation should be carried on In theory.
The near approach to the time when ma
tional bonds will be due and payable, the
limited volume of such bonds of this kind,
and their high prices in the market, prove
conclusively that other security for cir
culation must be resorted to. With proper
regulation under governmental provisions.
the bonds of the States, OF counties and of
certain municipalities can be utilized for
the purpose OF securing a national circula-
ton, and all banks. State as we'll as ma
tional, depositing such securities ought to
be permitted to a k out currency to at
least 30 per cent. of the par value of such
bonds: OF course. the ~strictest scrutiny
should be exercised in regard to such
bonds. and they should not be accepted IN
less they had been at par value in the mar
ket for at least two years previous to their
deposit and unless there had never, been
any default in the payment of interest
upon them. Efficient provisions should be
enacted for requiring additional security
in case of the slightest depreciation OF these
al responsibility for the redemption in
coin on demand Of such notes, and provi-
SONS should be made thereof by a. coin re-
se-ve equal TO at least 20 per centum of
tse outstanding circulation The govern
ment having assumed all responsibility for
redemption and retirement of its currency,
there would be no necessity for bank re-
serves or for withholding any portion of
the currency that might be issued from cir
culation among the people. These gener-
ally are my indivual views. and L hope that
with the aid of the committee on banking
and currency and the members of Congress
be able to formulate such legislation upon
the general lines l have indicated as will
onmend itself to the favorable action of
both houses Of Congress and the Presi-
DENT