St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-11-16
OUR new BANKING SYSTEM
RADICAL LEGISLATION BY CONGRESS-
0T MONETARY MATTERS.
CHAIRMAN sPRINGER's TALKS.
Setter System of Currency Pro-
posed No Ante War State
Banks-Other Security for Cir
culation Than Government
Bonds Must lie Adopted-Re-
lief From Present Conditions.

bankS-Other security Tor CIR
culation Than Government
Bonds Must lie Adopted-Re-
lief From Present Conditions.
WASHINGTON. Nov. 15.-One of the
first subjects to engage the attention of
congress when it cOnveneS i'll regular
session at the beginning of December
viii be new banking and currency sys-
tenn. For many years this matter has
been under consideration, and at times
has figured quite as prominently In
congressional discussions as free coin
age and other phases of the financial
question, but not until now, when the
monetary necessities have reached such
an acute condltiCu has radical leglSla-
lion on this subject. become all immedl-
ale probability. Following closely upon
the repeal of the Sherman silver pur-
chase law, has come the study OF the
banking and currency system of the
country, and for the past two years
Congressman Springer, of Illinois, chair
man of the house committee Oh bank
ing; Senator Voorhees,, of Indiana,
chairman of the senate committee or
finance; Congressman Dewitt Warner,
Of New York, and others who Will be
Prominent in any legislation on this
subject this winter, have been engaged
in frequent consultations with the
president, secretary of the treasury.
comptroller of the currency and other
financial officers of the ADMINISTRATION,
with the view of proposing legislation
which Will meet the necessities of the
government and provide large and
more convertible circulating medium.
Chairman Springer, of The house COM
mittee on banking. has just left the
city after number of conferences with
members of the administration.
CHAIRMAN VOORHEES,,
of the senate finance committee, and
the financial officers of the treasury de-
partment, 1t is expected, will, in con-
nection with his committee, submit TO
the house important legislation on this
subject Immediately after the recon-
vening of congress. congressman
Warner. SperrY and the leading Re-
publican members of the house commit
tee on banking and currency are said
to be Mr.. Springer'S active colabor-
ers. and it is quite generally conceded
that any legislation which might be-
come law can only be the result of
harmonious action between the two
political parties, and will not be cred
tied as the marked achievements of
either. When asked for copy OF the
measure said to he under consideration
by himself and colleagues, Mr.. Springer
laid that it could not be given out in
detail until it had met the full approval
of the various other members OF the
committee over which he presided.
I'VE have been engaged for several
months" said Mr.. Springer. "in the
preparation of a measure which. at the
proper time, [ will introduce in the
house and have referred to the commit
tee on banking aud currency, of which
! am chairman. Our object is TO re-
Spond, as far as possible. to the reason
able demands of the country for bet
ter system of currency and to provide
some plan by which our currency may
be placed upon better basis. Any eff
fort, in my Judgment, to return TO the
system OF state banks, which prevailed
before the war. would be futile, and
even if the 10 per cent tax Oh state bank
circulation should be removed, it would
furnish little or no
RELIEF TO THE COUNTRY.
The reason of this is obvious, great
many states in the union have adopted
constitutional provisions prohibiting the
charter of banks in those states for the
purpose of issuing or with authority, to
ISSUE circulating notes. Such notes,
therefore, could only be of local value,
and while some states would provide
safe system, the experience of the past
shows that irredeemable issues of paper
money would flood the country; that
counterfeitihg would be universal, and
that the currency system of the country
would be thrown into confusion. What
required and demanded by the country
IS national currency which at all times
shall be convertible into coin on de-
ter, sufficient in volume, and so diStrib-
uted throughout the country as to re-
spond to the wants of trade and prevent
congestion in the great money centers.
81 do not think the present national
banking system has proved itself equal
to the demands of the country" con-
tinued Mr.. Springer. There is less
than 5000, 600 of national bank notes
how i'll circulation, and there is no
prospect of an Increased circulation un-
.ess more favorable legislation to the
banks is secured. The government
having practically relieved the banks of
the responsibility Of redeeming their
Cwn notes, and the experience of the
past demonstrating that the people do
not look to the banks for redemption, |
90 not see why this needless operation
,huuld be carried Oh in theory. The
aear approach to the time when ma
Iioual bonds will be due and payable,
a yynt Nf nnh dc of
this kind. and their high prices in the
market, prove conclusively that other
security for circulation must be resorted
to. With proper regulation under gov
ernmental provisions the bonds OF the
states, of counties and of certain mu-
inequalities can be utilized for the pur-
pose of securing
NATIONAL CIRCULATION,
and all banks. state as we'll as national,
GepOSiting such securities ought to be
permitted to take out currency to at
least 80 per cent of the par value of such
bonds. OF course, the strictest scrutiny
should be exercised i'll regard to such
bonds, and they should not be accepted
unless they had been at par in the mar
ket at least for two years previous to
their deposit, and unless there never
had been default in the payment of in
lClCot UpOII pIOflSlOllS
should be enacted requiring additional
security in case of the slightest depre-
citation of securities. The government
should assume all responsibility for the
redemption in coin on demand of such
notes, and provisions should be made
therefor by coin reserve equal to at
least 20 per centum OF the outstanding
circulation. The government. having
thus assumed all responsibility for
redemption and requirement of
its currency, there would be No
necessity for bank reserves or for with.
holding any portion of the currency
that might be issued from circulation
among the people. These generally
are my individual views. and l hope
that with the aid of the committee or
banking and currency and the mem.
bers of congress generally, without re-
gard TO party. will be able to formulate
su n legislation upon the general lines
nave indicated as will commend itself
to the favorable action of both house:
of congress and the president. Although
the committee is not in session, the
conferences among the members still