The Yale expositor., 1897-12-24
CAGES CURRENCY REVISION.

banking and currency and presented a
bill embodyiug his views on the revis-
ion of the currency. lie introduced it
with an explanation of the objects for
which it was prepared, viz: To commit
the country more thoroughly to the
gold standard, and thus strengthen the
credit of the United States at home and
abroad; to strengthen the treasury in
relation To its demand liabilities;
to do this in such way as not to con-
tract the volume of circulation in the
hands of the people; TO take an initial
step toward a system of bank note is
sues without the conditional deposit of
public bonds as security therefor; to
place the revenue of the government
in advance of its expenditures and
gradually reduce and finally extipguish
the public debt. The bill in full is as
| follows:
A bill to provide for the refundlng of
| the national debt, for establishing a re-
! demption fund. and a division Of issue
| and redemption in the treasury OF the
| United States and to modify existing
laws respecting national banks; and for
| other purposes.
Be II enacted, etc, that there be estab-
| lished I'm the treasury department, as a
! part of the Office Of the treasurer Of the
United States, a division to be designat-
| ed and known as the division of issue
| and redemption, TO which shall be as
signed, under such regulations as the Sec
rotary of the treasury may approve, all
| records and accounts relating to the is
sue, redemption and exchange, as here
| matter provided of the several classes
| OF United States paper money. There
| shall be transferred from the general
| fund i'm the treasury of the United States
Il IL. lA hoo FE % IL
vision as a redemption fund the sum Of
SIPS, goo 900 in United States gold coin and
| bullion, and such further sums OF stand
ard silver dollars and silver bullion pur-
| chased under the act of congress APP
proved July II. $780, as shall equal the
silver certificates outside the treasury
| and treasury notes of 1890 outstanding on
the date when this act shall take Ell
feet. And thereafter the gold and sill
yer coins and bullion hereby transferred
from the general fund I'm the treasury,
| as herein provided, shall be Increased
| or diminished, as the case may be, In
accordance with the provisions of this
act, and in no other way.
Sec g That all United States notes,
treasury notes of 1890 and silver certih-
Gates presented for redemption shall be
redeemed from the redemption fund here
| In provided in accordance with the terms
of existing laws, but the notes and GER
| tificates so redeemed shall be held in and
| constitute a part of said fund, and shau
not be withdrawn from said fund nor
| disbursed except I'm exchange for an equiv
alent amount of the coin I'm which said
notes or certificates were redeemed; but
! to enable the secretary of the treasury
more thoroughly to carry out the pro-
| visions contained in this act, he Is hereby
authorized TO exchange any of the funds
in the division of issue and redemption
| for any other funds which may be I'm the
general fund OF the treasury department.;
provided, that nothing i'm this act shall
be construed as repeating that provision
of the act approved July IA, $780, which
provides that there shall be outstanding
at any time no more and no less of the
treasury notes authorized by said act
| than the silver bullion and standard dol
lars coined therefrom then held in the
treasury purchased with said notes.
Sec 3. That the secretary Of the treas
ury be and he is hereby authorized to
receive ct the treasury any Of the out
standing bonds known as the per
centum bonds Of 1904 and the 4 per centum
consols Of 1907, Issued respectively under
the act approved Jan. H. 1875. and the
acts approved July II, 1870 and Jan. 70.
1871. and to issue in exchange therefor
coupon or registered bonds Of the United
States in such form he may prescribe,
in denominations of fifty dollars, or some
multiple Of that sum, bearing interest at
the rate of PA per centum per annum,
payable semi-annually. and redeemable
at the pleasure of the United States az
ter ten years from the date of their Is
sue; and the bonds hereby authorized
shall be payable, principle and interest,
in United States gold coin of the present
standard value, and shall be exempt from
all taxation by or under state, municipal
or local authority; provided. that none
| oil l,o
ed at a valuation greater than their pres
ent worth to yield an income of 21s per
centum. and that the bonds hereby au-
thorized shall be issued at not less than
par.
Sec T. That the bonds authorized by
this act, and any other bonds of the
United States may be deposited with the
treasurer of the United States as security
for the circulation notes of national bank
ing associations; and any national bank
ing association which may deposit the
bonds herein authorized to be deposited
as security for its circulating notes shall
be entitled to receive from the comp
troller OF the currency and to issue such
notes to an amount equal TO the face value
Of such bonds. Provided. that the aggre-
gate amount of bonds deposited by any
national banking association under any
law shall not exceed the amount of its
capital; and provided further, that moth
to modify or repeal the provisions Of
section 5167, and section 5l71 OF the Re-
vised Statutes, authorizing the comptrol-
Ter of the currency to require additional
deposit of bonds, or of lawful money, in
case the market value of the bonds held
TO secure the circulating notes shall fall
below the par value of the circulating
notes outstanding for which such bonds
may be deposited as security.
Sec. s. That any national banking as
ISOLATION, whose deposit of bonds is less
than the amount of it's capital, may de-
post with the treasurer of the United
States, under such regulations as the sec
rotary of the treasury may approve,
United States notes, treasury notes OF
1890. and silver certificates and shall be
entitled to receive from the comptroller
of the currency and to issue an equal
amount Of its circulating notes; but the
aggregate amount of bonds, United States
notes, treasury notes of 1890 and silver
certificates deposited by any national
banking association shall not exceed the
amount of its capital; provided, that the
total amount of United States notes.
treasury notes of 1890 and silver certifi-
Gates. deposited with the treasurer of the
United States. under authority of this
section, shall not exceed the sum of $500,
600, O00
Sec G. That the secretarv NJ tho ,raos