New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-09
CURRENCY REFORM PLANS
A BILL TO BE SUBMITTED BY SECRE-
TARY GAGE.
lively SESSION OF THE BANKING AND CUR
HENCY CoMMITTEE-MANY PLANS PRO
PosED-A BILL PREPARED AND Elk
n


rrY TELEGRAPH TO I'VE TRIpuNnl
Washington Dec. S.-The first meeting Of the
House Committee on Banking and Currency for
This session was held to-day and that 1t was a
lively one goes without saying. Several or the
members were inclined to take the bit between
their teeth and insist upon the immediate and
favorable report of a bill providing that Ma
tional banks shall be allowed to Issue circulating
notes to the par value Of the bonds deposited pv
them 70 said notes, that the tax on clrcu-
lation should be reduced to one-Quarter OF per
cent and that National banks with capi'a'
as small as sos 900 each might be estaoIished.
These provisions are found in bill INTRODUCED
by Mr Brosus, of Pennsylvania at the specia'
session. and are Identical with those reoo"'-
mended by Secretary Gage in his annual report
and approved by President Mckinney III his
MESSAGE Similar provisions have been en-
bodied In numerous other bills. ooth IN this ana
previous Congresses. but have never round
ctrarqth enough 10 become laws. although they
have had the support of strong and jealous al
vocates.
Mr. rItl;. OF Connecticut made tho motion for
Immediate action. and thereby precipitated a
sharp debate Each Of the financial coctors
who compose the committee has one or more
prescriptions for the currency Ills which afhict
the country and each of them Is therefore op-
posed to having the prescription OF either OF '''e
others hastily administered. Mr. Johnson Oh
Indiona. and Mr. Mitchell. Of New-York both
smoke in opposition to Mr.. HIS motion at the
morning sitting of the committee.
MR. CAGES BILL TO BE READY SUN
BEFORE Il was sprung, a resolution had peen
adopted requesting the Secretary or the i'e"S
ury to embody his recommendations lo' ~"
rency and financial reform In drai' Oh d o'i,,
and II was understood that this request "ouiu
bo complied with, so that the committee cou'o
have it next week
Chairman Walker ventured the opinion. after
tho first sitting of the committee. that II "ouiu
r.nort "o,e or more banking and currency bills
by the middle Of February. and intimated that
al least one Of them would provide for the issue
of banknotes secured by bank assets ana d
safety fund to be created by a small tax on
circulation, instead Of by deposits of bonds
Among the bills pending before the committee
is one offered by Mr. Mitchell. Of New-York, TO
establish a currency reserve fund" In BRIEF IL
provides
FrsFor the establishment Of aa q l0 be 70 se Pe
as r tSs M eher ns or
Treasury and TO be accounted for distinctly iio''
the as d IN ths Of the
Immediately deposit in said fund. out OF ne gen.
including the gold reserve fund Of 10000 Gne
same to be converted into coin) and shaii lu' ny,
eoin or Bullion ho United States TeasnTg
notes f S an sfee sss Of
fund shall amount to s2oo"oooo and until hdnd sa ~
the United States, not actually due and payable
shall be purchased or redeemed - s,a,ss notes or
Treasury notes of 1890 are presented for redenp Pr
ton in gold coin they shall be redeemeo AMOUNT 0u O
O. such notes shall be deposited in the fund: 50
Of sad fund shan sha be-
reiss 14oep in exchange for IKE amount a.d Pima o.
d to r esay ma IN rs
fer gold coin ned in The d4 S Sasn IN hed de
and may also exchange notes Of one nies OF
for those o. an3.se s. 5en ike amount Of notes
Of the other class, and may replace notes worn
pos Gs' Of gold coin gold bullion shall be Issued
MR. MITCHELL EXPLAINS HIS MEASURE
In relation to the general subject of currency
legislation as we'll TO the remedy he proposes.
Az N,,tcheu to-day said to q Tribune CORE
spondent:
The dangerous element Of the existing situation
Is admitted TO be the greenback In Its present
Contributed to bring upon US the distress Of the
last no one Tho mas aes stud s The the
found distrust manifested abroad and at home had
iorm n0 Of ars note Issues The
:or redemption In god after 1882 b was GagSHI m
Gould not OF. would not continue to redeem III, the
ss IN s0s Thi Ga 70
other words more than the entire note cirSuat l
IN fact, less than 100000 did it, by being pre-
scented again and again. . - -..-.. ..
ISSUE TG rsn;s 90 eSP 81 bonds VICE.
s e5fss'' xScs be Bsq ssS@ %
oolco Of gold which we were compelled TO buy
800 10000 remaining we have now sl5S oc9eoo the
he kolf NJ 0Ql
Had the Treasury been fortified with large sur
sSss t !9s cs but instead Of esono@zns
have 9re Of I
the deficit in the revenues continues
quite Quite manifest that we are far having
h vsa Who az favor the retirement been able to
he.e to ss f0r hs
wise course to be pursued Is 10 remove the element
f dans s saf as
changes or the outbreak OF var, which would most
be avoided
LITTLE CHANGE IN EXISTING LAW
Tho proposition embodied in my bill is q simple
one requiring little legislation or change In ad-
minstration II alters existing laws only In ono
an expansion Of the currency volumes; in short It
"a a measure which, while rendering the greenback
to the Currency in statu quo The purpose Of the
measure is to revoke the co%PusSry s reissue OF
when gold snail be rendered for them. In tho
rst draft Of the b prepared early last sg , h
purpose at 100000. The Treasury has. however
suffered loss Of net cash 50 that Il is now pro, pro
Ing thereto such sums as the Treasury may be
able TO spare in excess Of working cash balance
Of S150o0.OD until, with the return or more pros
porous days, the fund OF 900 believed TO be
ample for all possible requirements. shall have been
accumulated. Thus. TO strengthen the currency
branch OF the Treasury without interfering with
its ordinary functions would at once give TO the
pose 20 keep every dollar as good as every other
dollar; II would enable to proceed with the aus
cussion OF the proposed radical reforms without
having the fear Of gold raids hanging over US
The retention OF the greenbacks. instead OF Their