Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-08
ITS PLAN OF ACTION
Meeting Of the Banking and Currency
Committee.
ATTEMPT TO REPORT 4 MEASURE
F ayorabIe Report on a Bill Against
Pe|agic Sealing.
COMMITTEES IN CONFERENCE

The House committee on banking and
currency, which will have the shaping of a
considerable portion of the financial legis-
iati"n before the House, held its first meet
ing this morning ands outlined it's general
plan OF action. In view Of Secretary Cages
recommendation of comprehensive re-
vision OF currency and banking affairs,
resolution was adopted inviting the Secre-
tary to embody his views in a bill. The
committee was informed that the Secretary
was now at work on a measure and that it
would be available for the committee in
about a week.
MIR. Hill of Connecticut then precipitated
a sharp debate by moving that the COM
mittee act at once by reporting to the
House bill embodyins three of the fnan-
cial features which had the Presidents ap-
proVal. These were embodied in a bill
heretofore offered by Mr.. Brosius of Penn
sylvania, and Mr.. Hill now proposed that
the first three sections be placed before the
House Immediately.
The three sections provided: Bank circu-
Iation up to the par value of bonds de-
posted, reduction of the tax on circulation
to one-fourth of per cent, the establish
me mt OF small banks in rural communities.
Mr.. Hill said the committee would do
well not to go through the tedious pro-
SessSS VI COHSlueTlUS anu ulNlQlnS on tQeSo
II rec propositions. which appeared to meet
with general acceptance, and had received
executive approval.
Mr.. Johnson of Indiana earnestly opposed
such hasty action. He said there should be
time to hear from the gentlemen forming
the monetary commission and to weigh all
propositions Precipitate action on such
vital subject would. he said. seriously pref
udice 1t before the House and the county.
Mr.. Mitchell of New York also opposed
such speedy action.
The debate was proceeding with anima-
ton when at Il o'clock the meeting went
over, n vote on the Hill motion not having
been reached.
Chairman Walker announced four sub
committees and assigned to each a number
of the banking ard currency bills already
introduced.
The Suffolk Bank System.
The subcommittee will begin work at
once OH the bills before them each subcom-
mittee having charge of the bills introduced
by its members. The Walker subcommit-
tee will have charge of The Walker bill,
which has attracted considerable attention
in banking circles. 1t proposes to introduce
the New England Suffolk bank system to
the whole currency, adiing a government
guaranty for all notes issued by bsnks.
and imposing a small tax on bank notes as
a safety fund.
The bill of Mr.. Hill also goes before this
con mittce. Mr.. Hill says he has endeavor-
ed to draw 1t on conservative lines. meet
ing the financial ills which most need re-
form. without going to a radical extent.
He provides for an increase of bank cir
culation to the par value Of bonds de-
positcd; reduces the taxation on circula-
uOn to one-fourth Of l per cent; provides
for the establishment Of small banks In
rural communities. and does away with
the restrictions on the free issue and
withdrawal Of national bank notes. Except
in tbs last particular, the author Of the
bill feels that he is in line with President
Mckiniey's recent currency recommenda-
tiers.
This committee will also deal with the
ILLS of Representative Cox, the ranking
democrat of the committee. The main one
is generally known as the Carlisle bil,"
which was originally urged by John G..
Carlisle when he was Secretary of the
Ire easury. Mr.. Cox is also pressing the bill
for the repeal Of the tax on state banks.
Secretary Cages Plan.
The Brosius subcommittee will probably
deal with Secretary Cages plan of cur
rency and banking reform.
bill ON the same lines has been intro
duced by Mr.. Mitchell of New York, a
member Of the subcommittee. Its essen
tial feature is to separate the funds of the
government into two branches, one relating
ing to the broader monetary affairs Of the
country, the details being much the same
as those outlined by Mr.. Gage.
Mr.. Brosius, the chairman of this SUBJ
committee, also has a comprehensive meas
ure Of currency reform. 1t covers the fea-
lures which MIR. Hill sought to have report
ed today, and also Il separate redemption
fund calculated to reinforce the treas
ury reserve. The Brosius bill also gives
the Secretary of the Treasury the discre-
ton of redecming notes in silver or gold,
at the option Of the holder.
The johnson subcommittee will deal with
Mr.. Johnson's bill. which more particularly
seeks to allow national banks to issue cir
culation up to the par value of their bonds
deposited.
The Van Voorhis subcommittee will ham
die the Fowler bill, which provides for the
iefunding of bonds for new United States
gold bonds bearing 2 per cent interest.
There are many other measures which
are before the several subcommittee, but
the foregoing comprise those which have
attracted the most general attention and
are likely to furnish the basis of discussion.