The morning times., 1896-02-22

Senator Knute Nelson or Minnesota, has
a new financial scheme. He has embodied
ii In a bill which has been introduced in the
Senate.
One day This week he was before the FL
nance Committee and presented his plan as
briefly as he could. This measure is likely
TO meet the fate OF the tariff bin because
il has The same opposition that OF the silver
men.
The new Senator from Minnesota has
had a large experience in public life. Be
fore his election as governor OF his State
he was a Representative to Congress for a
number of years. Among other things he
gave the financial subject a great deal of
thought. This bill which he has introduced
is the result OF his research in the monetary
field. He has hopes OF its passage some
day.
The chief object OF his bill is 10 enlarge
the circulation OF national banks and give
a Larger volume of paper money. The eX-
perence OF the last three years, lie holds,
has shown to the more conservative people
OF the country the necessity of retiring the
greenback. Bat the large majority Of the
people want a paper currency and think
that the government should cease issuing
NJ oney.
AN ABUNDANCE WANTED.
Before retiring the greenback, though,
there should be an abundance of paper cur
rency, a currency which would be elastic
as the present greenback is not. The ma
tional bank note is safe. Mr.. Nelson does
not aim 10 create a new law he simply sug-
eests some changes. He does not believe in
banks OF issae should be under the super
vision of the general government. SO with
the changes he Suggests simply the field of
the national bank will be enlarged.
The measure aims To cover four points.
The first is 10 decrease The amount OF
capital required TO start a Rational bank.
The present Jaw grants TO 4 town OF less
than 5000 inhabitants the right 10 es-
tabliSh bank with Il capital OF $4,000.
Mr.. Nelson's bin would give tie privilege
of starting a bank in "a town of less than
10000 people with S25 ,0G0 capital: in
cities over 90 coo and under C0,CC0 with
$4,000, and in cities over 50,0G0 with
100000. The present law requires
capital of ScCO,000 in cities OF over co.
900 people
MUST REDEEM IN GOLD.
All these notes must be redeemable in
gold coin. Mr.. Nelson. however, says nc
is willing 10 say coin" The present law
permits the redemption OF any national
bank bill with any legal tender. IN this
way MIR. Nelson would make every bank
in the country bear its share of the gold
burden. He holds that when the govern
nlent SurTenderS a sovereign right TO a
national bank il should make that bank
bear part of the burden. This plan, he
thinks, would help the honest class need
ing gold and would stop the SPECTATORS.
He would also give the national bank
the privilege OF issuing bills TO the par
value of its bonds, and would also reduce
the bank tax on circulation from ] per
cent TO one-fourth OF one per cent These
last two points have been recommended
for a number OF years by numerous con-
trollers OF the Treasury.
Under the present law every nation al
bank must keep a redemption fund of
per cent OF its capital stock. This can be
done now in any money. Under the new
law il must be In gold. The reserve OF de-
positS demanded now by law. under the
new measure. must be kept in greenbacks
and gold.
MIR. Nelson will push his measure for all
there is in IL. II he is unable to secure
action this session he will take it up next
session. He is satisfied il would mater
iallv relieve the financial system