The Portland daily press., 1893-12-30
SPRINGER HAS A BILL.
Another Plan to Put State Banks
Under National Control
WITH A COMMISSION TO OVERSEE
THE INSTITUTIONS.

Mr.. Springer Would Have National Cur
rency Notes, Redeemable by the Gen.
eral Government-These Notes Would
Be Issued to Banks, State and National,
Upon Bond Deposits. the Bonds to In
clude Those of municipalities and To
Be Redeemable in Coin.
Washington, December 29.-Represen-
tative Springer, chairman of the COM
mittee on banking and currency, of the
House, has prepared national currency
bill, which provides:
| First-For the creation of national cur
rency commission to be composed of the
Secretary of the Treasury, the Treasurer
of the United States, and the Comptroller
of the Currency, which will 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
| sufficient quantities to meet the require
ments OF the act, which notes shall be
|
| public and private, and, except where
| otherwise stipulated, shall be received
! for customs, taxes and all public dues.
| They shall also be redeemable on de-
mand in coin at the treasury of the
United States or any sub-treasury and,
| Such notes shall be isaued in
the first instance, to any bank or bank
| ing association organized under the laws
| of the United States or of any state or
territory, which is solvent and has
capital stock actually paid up in cash of
at least sa5, 600, upon the deposit with
| the commission OF bonds such as is re-
! quired by the other provisions of the
act. Such notes shall not be issued to
any bank in excess of it's capital stock
actually paid up.
| Third-Bonds which may be received
shall be either bonds of the United
States upon which the notes may be
issued to the face value thereof, or bonds
of any state, county, parish or munich
| pal1ty having population OF not less
than 5000, which bonds have been for
| two years at par in the market and the
interest on which has never been de-
| faulted.
| Fourth-The national currency notes
| issued under the provisions of the act
| shall not be subject to the ten per cent
| tax imposed by Congress on the circu-
| lating notes of state banks nor to any
| other tax by Congress, except as pro-
vided in the act; nor be subject to
taxation under the laws of the states;
and the bonds deposited for their securi-
| ty shall be exempted from taxation by
| the United States or any state or terri
tory during the time they remain on
| deposit. Banks depositing other than
national bonds may receive 80 per cent in
circulating notes on the par value of
such bonds. The United States assumes
| all responsibility for the redemption of
the circulating notes and banks are not
required to keep reserve on that ac-
| count. Banks depositing bonds must
guarantee their payment and all assets
Stringent provisions are inserted for en-
forcing the liability of the banks to the
| United States and for determining the
safety of the securities deposited.
| Fifth-Provision is made for securing
| elasticity of the currency on the notes
issued. To the amount of half of their
capital stock, banks must pay a tax OF
one per cent per annum; on an addition
| al amount equal to 25 per cent of the
capital stock, two per cent tax will
be imposed, and on the remaining 25
per cent, four per cent tax will be re-
quired, the object being to force the re-
tirement of notes which may be re-
| dundant
Sixth-Ample provision is made for
retiring redundant currency and it's
| cancellation.
Seventh The faith and credit of The
United States is pledged to.the redemp-
tion in coin on demand of national cur
rency notes and reserve fund in coin
will be provided equal to 20 per cent of
the outstanding notes.
Mr.. Springer in explaining, the pro
visions of this bill said: "The object
which had in view in framing the pro-
visions of this bill is to secure to the
people of the United States safe and
elastic currency, which shall be equal
at all times and under all circumstan
to the wants of trade and commerce, and
which currency shall be uniform in
value throughout the United States and
at all times maintained at par by being
covertlble into coin on demand. The
national currency which would be fur
nished under this bill would have an ad-
vantage over that which would be fur
nished through the instrumentality of
state banks. The notes would be easily
recognized and circulated at par, and
distributed generally in every part of
the United States. They would be legal
tender in the payment of 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 will be returned to the United
States and cancelled, and could not be
issued in excess of the wants of trade by
reason of thesfact that they would, at all
times, be convertible into coin on de-
mand. The banks through which
they would be issued would not be re-
quired to maintain any reserve fund
whatever for their redemption and would
thus get the full benefit of circulation,
which would be furnished them ON their
depositing the bonds required in the act
The danger of wild cat and irresponsible
currency would be averted andssno appre-
hension could ever exist in the public
mind as to redemption in coin of the
notes which would be issued, for the bur-