The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-06-14
A House Committee Soon TO
Formulate a Scheme.
TO CONTINUE NATIONAL BANKS.
But TO Remedy Defects That Exist In
the Present Law.
Republican Senators Protest Against
Destruction OF the American Wool
Industry Congressman Liaton .
Member of the A r. A.

washington CITY. June i3-Represen-
tative Walker. of Massachusetts,. the vet
eran member of the committee on banking
and the senior Republican member Of
the committee. says that in his opinion
the question of banking and currency
about TO be matured in a comprehensive
system BY select committee OF five men,
bers under a recent vote BY the banking
committee, is the most important subject
before congress, not second to the tariff
Sealed ballots are now being filed for the
purpose of selecting the committee of five.
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 I've members hsv-
ing the largest number of votes will con-
stitute the select committee. Walker has
agreed that no votes shall be given to him
self or TO Messrs. Springer, Warner or
Sperry, as each of them has banking
oil 10 which he would naturally be in
clined. The entire purpose of forming the
select committee is TO break away from
the present bills and 10 get up a broad
banking system. with such good features
of all the bills as may recommend them
selves.
tinuously. said Mr.. Walker. with a view
of reporting their work to the house by
the 9TH inst, to insure positive results.
Recent discussion in the house and in
committee has made the substantial fea-
lures of the system reasonably certain.
Ii is in the direction of national cur
rency and national banking, and away
from state banking. and based on gold and
silver instead of bonds. The general de-
sire is to create system of national banks
which shall proceed along lines parallel TO
the present national banks. The latter
will be merged gradually into and abb
sorbed by the new system. As the char
ters 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 and the substitution therefor of a
uniform paper money issued by the gov
ernment through the banks. At present
the government circuiates the treasury
notes, greenbacks. silver certificates and
various kinds of currency and the govern
ment undertakes 10 make good this money,
but the purpose will be to make the ma
tional bank the sole source of issuing cur,
rency under government supervision and
direction. The government thus will be
relieved of the burden of issuing, circulat-
ing and currently redeeming these various
forms of currency. and the entire RESPONSE
bilIty will be placed on the banks. This
national bank currency would be sur
rounded by ali the safeguards of the pres
ent laws and such other safeguards as
would insure its proper redemption. In
short, the Federal government will be re-
lieved of direct attention 10 the issuance of
money and all responsibility for keeping
it. 1t will be good money, and yet will in-
sure the public that every dollar issued by
the national banks is good and redeemable
the country over.
"Can such a measure be passed at the
present session ?" Mr.. Walker was asked.
Possibly not" said he, "but il will
serve valuable purpose to business. The
mere fact that such comprehensive meas
ure for national currency can be reported
and put on the calendar will have salu-
tary 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 poin {
of view we have had in twenty years. 1t
has cleared the way for safe. sound and
conservative system Of nationalized banks
a