The Helena independent., 1893-08-21
A COUNTER PROPOSITION,
To Be offered When Voorhees, Bank
Note Bill Reaches the
House.
It Will Increase the Circulation
Three Times What He
Proposes.
The Enlarged Issue VIII be Based on the
Silver Bullion Coined Into stand
ard Dollars.

WAsnINaToN Aug 20.--It IL the expscta-
tion of the free coinage men in ths house
that, whatever be the result OF the various
votes on repeal. conditional or uncondi-
tional, on the 2Sth. the senate will In q
short tins pass the Voorhees, bill TO in
crease the volume Of national bank notes
and send the measure TO the house for its
concurrence. People who expect the house
to adopt this proposition in toto and with
promptituds are likely TO be disappointed.
II will give riso 70 long debate and the si-
yer men are preparing to meet the Voor-
hees bill with an even moro liberal ptopo-
sition. They propose q measure which.
instead OF swelling national bank currency
$l3, GOO OOO. as contemplated by the Voor-
hees bill. would increase this circulation
$58.000OO0 and at the Same time satisfy
the demands of strong element
of the American people BY making
it impossible for national banks 10
increase or diminish at will the
volume of circulating currency. The meas
ure which is being discussed by siver men
az q counter proposition to she voorhees,
bill has been drawn by Representative Bal
10y. OF Texas. an ardent bimet etalltst, who 10
known In the camps of the free coinage men
to be the real author Of the free coinage bill
now pending in the house ss a proposition
to be offered by Bland as substitute for
the Wilson repealinq bill. Bailey's national
bank bill il entitled: "A bill to increase the
currency and to provide for the redemption
thereof, and for other purposes" IL pro-
vides:
Section 1-From and after the passage
of this act any bank organized under the
laws of the United States and having on
deposit with the treasurer of the United
States bonds bearing intei est at the rate Of
four per cent per annum may surrender
said bonds to the treasurer of the
United states. to be cancelled, and to
receive in lieu theeof an amount of ma
tional bank notes which, added TO the
amount of notes heretofore issued TO said
bank, shall be equal TO one hundred and
twenty cents for each dollar speciasd in
said bonds.
Section 2-Any bank which shall surYen-
der its bonds i'll nccordanoe with the hrst
section of this act shall thereafter be and
| remain exempt from the tax OF ono per
cent now required to bs paid upon Its cir
culstion.
seoslon 3-The treasurer Of the United
States shall return to any bank which will
surrender its bonds in accordance with the
may be in the treasury to the credit Of
such bank on account of its redemption
fund.
Section 4-Ths United States hereby
assumes all notes issued under the first
section of this act, and in order 10 provide
for the redemption of said notes tho secre-
tary OF the treasury Is hereby directed TO
have coined into standa d silver dollars all
tho silver bullion now In the treasury, ex-
cept so much thereof as may be sufficient to
redeem the coin notes issued under the act
of July IA, 1890, entitled IAN act directing
the purchase OF bullion and the issue Of
treasury notes thereon and for other pur-
poses" and all said silver dollars shall be
reserved as q special fund to redeem such Of
paid notes as may be presented for redemp-
sion.
Section 5-Additional notes issued to
any bank under the first section of this act
shall be uniform in all respects with notes
heretofore issued to the sRme bank, ami
may be counted as vart of the lawful re-
serve which the law requires national banks
TO hold. and said additional notes shall be
receivable the same as is provided BY law
for notes heretofore issued. and when re-
ceived by the treasury shall be re-issued
the same as ia now provided BY law for
United States notes.
Bailey said his proposition would in
G esse tho circulation over 80. O,OOO
directly and would indirectly add over
S., 200, coo more by releasing sums held in
the treasury for REDEEM ption purposes. maxi
ing the total inc, ease moro than $55. .OO0 900.
Besides this il would save tho tax payers OF
she count over $4,000. 900 in annual inter
est. The banks In every part OF the country
would find 1t profitable to surrender theiH
| bonds and take this additional circulation.
but it would be especially profitable to
banks In those sections where the rate OF
interest is highest. "Aly BILL" he contin-
ued will also utilize all the bullion now in
the treasury except what is necessary to re-
| deem the notes issued under the Sherman
not. surplus of something like 900. oOO 600.
which will constitute a coin reserve iund.
about the same proportion as now held for
the redemption of greenbacks."
| The bill to increase the national bank cir
culation ia tho regular order IN tho senate
after Tuesday. and while there was some
| expectation last week that II could be dis
posed of in a day or two at most, II appears
now il may provoke long debate.