The record-union., 1894-06-14
BANKING AND CURRENCY.
A SELECT COMMITTEE TO FORM
ULATE A NEW MEASURE.
The Bill to Provide for the Substitu-
tion of Paper Money Issued by
the Government.

Special to the RECoRD-UNIoN.
WASHINGTON, June 13.-Representa-
tive Walker of Massachusetts,, a veteran
member of the Committee on Banking
and senior representative member of the
committee, says that in his opinion the
question of banking and currency about
to be matured in comprehensive system
by select committee of five members,
under recent vote of the Banking Com
mittee, is the most important subject be-
fore Congress second to the tariff. Sealed
ballots are now being filed for the purpose
of selecting the committee OF i've. Each
member of the Banking Committee has
vote and names five of his associates on
the committee. The seals will be broken
Friday, and the five members having the
largest number of votes VIII constitute
the select committee.
Walker has agreed that no votes be
given To himself or to Springer, Warner
or Sperry, as each of them has banking
measure to present.
The entire purpose of forming the Sc
lect committee is to break away from the
present bills and to get up broad bank
ing system with such good features OF all
bills as may present themselves. me
committee of five will sit continuously,
said Walker, With view OF reporting
their work To the House by the 9th inst.
TO insure positive results.
Recent discussion in the House and
committee has made the substantial feat
ures of the system reasonably certain. 1t
is in the direction of national currency
and national banking and away from
State banking, and based on gold and
silver instead of bonds. The general de-
sire is TO create a system of national
banks which shall proceed along lines
parallel to the present national bank bill.
The latter will be merged gradually into
and absorbed by the new system. AS the
charters of the old banks expire, they
will be given charters under the new
banking system. Thus the old and new
systems can proceed in parallel lines
without any disarrangement of either
system.
Mr.. Walker was asked what the new
system OF banks would have to do with
the issuance of money.
The BILL" he said. undoubtedly will
provide for doing away with the various
forms of currency now issued, aud the
substitution therefor of uniform paper
money issued by the Government through
banks. At present the Government cir
culates the treasury notes, green backs,
silver certificates and various kinds OF
currency, and the Government under
takes to make good this money, bat the
purpose Will Do 20 MAKE the natlOnai
bank the sole source of issuing cur
rency under Government supervision
and direction. The Government
thus will be relieved of the bur-
den OF issuing, circulating and
currently redeeming these various forms
OF currency, and the entire responsibility
will be placed on the banks. This ma
tional bank currency would be sur
rounded by all the safeguards of the
present laws and such other safeguards
as would insure its proper redemption.
In short, the Federal Government will
be relieved of direct attention to the issu-
ance OF money and all responsibility for
keeping it. 1t will be good money and
yet will insure the public that every dol
lar issued by the national banks is good
and redeemable the country over"
Can such measure be passed at the
present session?'' MI. Walker was aske ed.
Possibly not" said he. But it will
serve as valuable purpose to business.
The mere fact that such a comprehensive
measure for a national currency can be
reported and put back on the calendar
will have a salutary effect in business
and banking circles. 1t will be in shape
also to be taken up at the next session OF
Congress. The recent debate on State
banks has been one of the most beneficial
from an educational point of view we
have had in twenty years. 1t has cleared
the way for safe, sound and conserv-
ative system of nationaliZed banks and
currency"