Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-29
NATIONAL CURRENCY
A New Bill for Its Issue Prepared
by Mr.. Springer.
SYNOPSIS OF IT'S PROVISIONS.
Not Liable to Any Ten Per Cent
Tax Law.
THE BOND DEPOS SIT

Representative Springer. chairman Ct the
committee of banking and currency If the
House, has prepared a national currency
BILL a synopsis of which is as follows
First. For the creation of a national cur
rency commission, to be composed of the
Secretary of the Treasury, the treasurer
Of the United States and the controller Of
the currency, which shall be charged with
the execution of the provisions of the act.
Second. This commission shall cause to
be printed at the bureau of engraving and
printing national currency notes in sufi-
cient quantities to meet the requirements
Of the act, which notes shall be legal
tender in the payment of all debts public
and private, except where otherwise stip-
ulated, and shall be received for customs,
taxes and all public dues. They shall also
be redeemable on demand. in coin, at the
treasury of the United States, or any SUBJ
treasury, and when redeemed shall be
reissued. Such currency notes shall be is
sued in the first instance to any bank or
banking association, organized under the
laws of the United States, or Of any state
or territory, which Is solvent and has a
capital stock actually paid up in cash Of
commission of bonds, such as are required
by the other provisions of the act. Such
notes shall not be issued to any bank In
excess of Its capital stock actually paid up.
Bonds to he Deposited.
Third. The bonds which may be received
shall be either the bonds of the United
States. upon which notes may be issued to
the face value thereof. or the bonds Of any
state, county, parish or municipality hav-
ing population Of not less than 5OUO. and
which bonds have been for two years at
par in the market. and the interest on
which has never defaulted.
Fourth. The national currency notes Is
sued under the provisions OF the act are
not subject to the ~ per cent tax imposed
by law of Congress on the circulating notes
or state banks, nor to any other tax by
Congress. except as PROVIDED in the act,
nor are they subject TO taxation under the
laws OF the states, and the bonds deposited
for their security are exempt from taxation
by the United States by any state or
territory during the time they remain en-
deposit. Banks depositing other than ma
tional bonds may receive w per cent in
circulating notes on the par value of such
bonds. the United States assumes all re-
sponsibility for the redemption of the cir
culating notes, and the banks are not re-
Quired TO keep reserve on that account.
The banks depositing bonds must guar
antee their payment, and all the assets of
the bank liable therefor. Stringent
provisions are inserted for enforcing the
for determining the safety of the securities
deposited.
To Secure Elasticity.
Fifth Provision Is made for securing
elasticity Of the currency. On the notes is
sued to the amount Of one half Of the CAPT.
tai stock the banks must pay a tax Of one
per centum per annum. On an additional
amount equal to 25 per cent Of the stock
two per cent tax Is imposed, and on the re-
naming 25 per centum four per cent tax
will be required, the object being to force
81
dundant.
Sixth. Ample provision is made for retir-
ing redundant currency and it's cancellation.
Seventh. The faith and credit Of the Unit
ed States are pledged to the redemptions in
coin on demand of the national currency
notes, and reserve fund, in coin. is pro-
vided equal to twenty per cent of the out
standing notes. The provisions of the ma
tional banking law in reference to examina-
ton of banks. to the counterfeiting of their
notes and the criminal acts of offices or
agents Of banks in connection with this cur
rency are made applicable to the national
currency notes. and provision Is also made
for the reprinting of soiled mutilated
notes at the expense Of the United States.
The national commission Is required to
make annual reports to Congress.
Mr.. Springer's Object.
Mr.. Springer explained the provisions of
this bill and said:
The object which have had in view in
framing the provisions Of this bill is to Sc
cure to the people Of the United States a
safe and elastic currency, which shall be
equal at all times and under all circum-
stances to the wants of trade and COM
merce and which currency shall be uni
form in value throughout the United States
and at all times main tanned at par by be-
ing convertible into coin on demand.
The national currency which would be
furnished under this bill would have adj
vantages over a currency which would be
furnished through the instrumentality Of
state banks.
The notes be easily recognized and alb
solutely at par, and distributed generally
in every part Of the United States. They
debts and not subject to local or national
taxation, except as provided in the BILL
If there should be any redundancy in such
notes, they would be returned to the United
States and cancelled, and could not be issu-
ed in excess of the wants of trade by rea.
son Of the fact that they would at all times
be convertible into coin on demand.
The banks through which they would be
issued would not be required to maintain
any reserve fund whatever for their re-
demption, and would thus get the full bene-
fit Of the circulation which would be fur
njshed them on their depOSiting the bonds
required In the act.
1.-The danger Of wildcat and irresponsible
currency would be averted, and no appre-
hensiOn could ever exist in the public mind
as to the redemption in coin Of the notes
which would be issued for the burden Of re-
demption would be upon the government
and not on the banks.
I'm short, the system which have pro-
posed, embraces all the advantages which
could possibly bes ecured through state
banks, and is subject to none Of the objec-
tions which can be urged against state
banks being authorized to issue circulating
notes.
II have not introduced the bill in the
House, nor has the committee on banking
and currency given 1t, as yet, any consid-
OF NJ md
operation of all who may take an interest
in the subject for the purpose Of amend
ment and the perfecting Of a measure
which will meet the requirements Of the
country"
The Ricycle RacA.