The evening world., 1893-11-15
Conferees Devising New Leg
islation at Washington.
State Bank Issues Would Not Afford
Needed Relief.
Mr.. Springer's idea OF New Secure
ties for National Banks.
CRY Associated Press

WASHINGTON. Nov. 15.-One OF the
drst' subjects to engage the attention OF
Congress when 1t convenes in regular
session at the bes inning of December
will be a new barking and currency
system.
For the past two weeks Congressman
Springer, of Illinois, Chairman of the
House Committee on Banks and Cur
rency; Senator Voorhees,, of Indiana,
Chairman of the Senate Committee OH
Finance, Congressman De Witt Warner,
of New York. n others ave been en-
gagged in frequent consultations with tho
President, Secretary Of the Treasury,
the Comptroller of the Currency and
other financial officers Of the Admins
tration, with a view 10 Legislation which
will provide n larger and more convert
BILE circulating medium without involv-
ing any financial or political embarrass;
ments that would grow out OF a revival
of the fiat money days.
When asked for n copy OF the measure
understood to be under consideration
by himself and his colleagues. Mr.Spring-
err stated hat 1t could not be given out
in datail until 1t had met the full APP
prevail Of the various other, members
sided.
tAAth e"se ShtS ''e' 'a
the preparation of u measure which at
the proper time 1 will introduce In the
! House and have referred to the Commit
I tee on Banking and Currency. of which
] am Chairman.
Our object is to respond. as far as
possible, to the reasonable demands of
the country for a better system of cur
rency n to provide some plan by which
U currency may be placed upon a bet
ter basis.
ANY effort, in my Judgment, to re-
frfNn tn tho CNGfatn nf Stntn hank which
prevailed before the war would be futile,
and cven II the 10 per cent. tax on State
banks circulation should be removed 1t
would furnish little or nc relief to the
country.
''The reason of this is obvious. A
great. many States in the Union have
tting the charter of banks in those
States, with authority to issue circulat-
Ing notes. Such notes, therefore. could
only be of local value, and while some
States would provide "a safe system, the
Z experience of he past shows that ir-
Iedeemable issues Of paper money would
Hood the country. that counterfeitins
would be universal and the currency
system of the country would be thrown
into confusion.
what is required and demanded by
shall at all times be convertible into coin
on demand. which shall be elastic In
character. sufficient in volume. and Sc
distributed throughout the country as to
1tlfohh W NtN wanna Va ttuhN ullNA PIC
vent congestion.
81 don't tnink the present National
banking system has proved itself adc.
quate to the demands of the country,
There are less han 500. 900. 900 of Nation.
al bank notes now In circulation. and
there. Is no prospect of an increased cir
Z yufation unless Nnore favorable legisla'
lion to the bankA is assured.
THO near approach to the time wher
! National hon II w be- due AID payable,
the limited volume of such bonds of this
kind and their high prices in the marke,
prove conclusively that other security
Tor circulation must be resorted to.
with proper regulation under Govern.
ment supervision the bonds of States, of
counties and of certain municipaIitie
can be utilized for the purpose OF Sc,
curing a National circulation, and al
State banks as well as National deposit.
Ing such securities ought to be per.
mitted to take out currency to at Least
20 per cent. of the par value OF suct
bonds.
"Eficient provIsionshould be madefor tn,
requiring of additional security in cas-,
OF the slightest depreciation of these Sc.
curitics. The Government should assume
all responsibility for the REDEMPTION In
coin on demand of such notes, and provi.
eionS she lid be made therefor by a coir
reserve equal to at least 70 per cent. OF
the outstanding circulation.
The Government having thus assumed
all responsibility for redemption and re,
tirement of Its currency, there will be nc
necessity for bank reserves or for with.
holding n portion of the currency tina
the peopla.n