The herald., 1894-06-14
A BANKING SCHEME.
THE OUTLINES OF A PROPOSED
NEW BILL.
Representative Walker of the House
Committee Banking Makes
Public u Plan for Comprs-
hensivs System.

WASHINGTON. June 13.-Representa-
an mem ber of the commi tee on banking
and the senior representative mem Der
of the com mittee, says that in his
opinion the question of banking and
currency about to be matured, in COM
r>-ei Il iva > :. -, hr' q aaiA"s a1n no ~
tee OF i've members, under q recent vote
OF the banking committee, is the most
important scheme before congress, not
second to the tarsf. Sealed ballots are
now being filed for the purpose of Sc
lecting 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 five members
having the largest number of votes will
constitute the select committee.
Mr. Walker has agreed that no votes
be given to himself or to Messrs.
Springer, Warner or Sperry, as each of
them h hAs banking bill to which they
naturally will be inclined. The entire
purpose OF the forming Of the select
com mittee is 90 break away from the
present bills and to get up broad bank
ing system with such good features of
all bills as may recommend themselves.
The committee of five will sit contin-
uously, said Mr.. Walker, with view of
reporting their work to the house on
the 9th inst, to insure positive results.
Recent discussion IN the house and in
committee has made the substantial
features OF the system reasonably GER
tain. 1t is in the direction of nationa
currency and national banking, and
away from state banking and based on
gold and silver instead of bonds. The
general desire ia to create system of
national banks which shall proceed
along lines parallel to the present ma
tional bank bill. The latter will be
merged gradually into and absor bed 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 pro-
ceed in parallel lines without any disar-
rangement OF either system.
MIR. Walker was asked what the new
system OF banks would have to do with
the issuance of money.
The bill will undoubtedly provide for
doing away with the various forms of
currency now issued, and the substitu-
tion therefor OF q uniform paper mones
issued by the government through
banks. At present the government cir
culates the treasury notes, green nbacks,
silver certificates and various kinds OF
currency, and the government under
takes to make good this money; but the
purpose will be to make the national
bank the sole source of issuing money
under government supervision and dl-
reetion. The government thus will be
relieved of issuing, circulating and cur
lu do tr,u xyor fpr ,,f
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 it's proper redempt ptiun.
In short, the federal government will
be relieved of direct attention to the
issuance OF money and all responsibility
for keeping it.
TT will be good money, and yet will
insure the public thai every dollar is-
sued by the national banks is good and
redeemable the country over"
Gan such measure bs passed at the
present session? Mr.. Walker was asked.
Possibly not," said he, bat it will
serve valuable purpose to business.
The mere fact that such comprehen-
sive measure for n national currency
can be reported back on the calendar
will have salutary effect in business
and banking crcles. 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 benef-
cial from an educational point OF view
we have had in 20 years. Il has cleared
the way for safe, sound and conserva.
tive system OF nationalizsd banks and
currency"