The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-17
BANK FEATURE IMPORTANT
RADICAL CHANGES IN THE present
SYSTEM RECOMMENDED.
Another Bill to he Submitted Later
gestiOn as to Short-Term Loans.

WASHINGTON, Dec. 16.-Lyman ]. Gage,
secretary of the treasury, to-day submitted
to the House committee OH banking and cur
rency a general financial bill for reform of
the currency and national banking system
After making a few immaterial changes,
Chairman Walker, of the committee, re-
| ported the measure tc the House. Following
| is the text of the bill:
A BILL to provide for the refunding of the
national debt for establishing a redemp-
ton fund and division of issue and re-
demptiOn in the treasury of the United
States and to modify existing laws re-
specting national banks; and for other
purposes
Be it enacted. ETC., that there be estab-
lished in the Treasury Department as a
part of the office of the treasurer of the
United States a division to be designated
and known as the division of issue and re-
demption to which shall be assigned, un-
der such regulations as the secretary of the
treasury may approve, all records and ac-
counts relating to the issue, redemption and
exchange, as hereinafter provided, of the
several classes of United States paper mon
ey There shall be transferred from the gen.
erai fund in the treasury of the United
States and taken up on the books of said
division, as a redemption fund. the sum of
$125 900 in United States gold coin and
bullion and such further sums of standard
silver dollars and silver bullion purchased
under the act of Congress, approved July
A. 1890, as shall equal the silver certificates
outside the treasury and treasury notes of
1890 outstanding on the date when this act
shall take effect; and thereafter the gold
and silver coins and bullion hereby trans
ferred from the general fund in the treas
ury. as herein provided shall be increased
or diminished, as the case may be, in ac-
cordance with the provisions of this act and
in 10 other way.
treasury notes of 1890 and silver certificates
presented for redemption shall be redeemed
from the redemption fund herein provided,
n
law: but the notes and certificates so re-
deemed shall be held in and constitute a
part of said fund.- and shall not be with
drawn from said fund nor disbursed, except
in exchange for an equivalent amount of the
coin in which said notes or certificates We're
redeemed: but to enable the secretary OF
the treasury more thoroughly to carry out
the provisions contained in this act he is
hereby authorized to exchange any of the
funds in the division of issue and redemp-
ton for any other funds which may be in
the general fund of the Treasury Depart
ment; provided, that nothing in this act
shall be construed as repeating that pro-
vision of the act approved July IA, 1890,
which provides that there shall be outstand-
ing at any time no more and no less OF the
treasury notes authorized by the said act
than the silver bullion and standard silver
dollars 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 re-
ceiVe at the treasury any of the outStand-
ing bonds known as the 5-per-cent. bonds of
1904 and the 4-per-cent. conSolS of 1917,
issued. respectively, under the act approved
Jan. H. 1875, and the acts approved July a.
1870 and Jan. 20, 1871, and to issue in ex-
change therefor coupon or registered bonds
of the United States in such form as he
may prescribe, in denominations of $50 or
some multiple of that sum, bearing interest
at the rate of 22 per centum per annum,
payable semi-annually and redeemable at
the pleasure of the United States after ten
years after their issue; and the bonds here
by authorized shall be payable, principal
and interest in United States gold coin of
ha standard shall
exempt from all taxation by or under state,
municipal or local authority provided, that
none of the outstanding bonds shall be re-
ceived at a valuation greater than their
present worth to yield an income of 2l2 per
centum per annum, ana that the ponds
hereby authorized shall be issued at not less
NATIONAL BANKS.
Sec. A. 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
circulating notes of national banking asso-
Citations; and any national banking associa-
tion which may deposit the bonds herein
authorized to be deposited as security for
it's circulating notes shall be entitled to re-
ceive from the controller of the currency
and to issue such notes to an amount equa,
to the face value of such bonds; provided
that the aggregate amount of bonds de-
under any law shall net exceed the amount
of its capital: and provided, further, that
nothing herein contained shall be construed
to modify or repeal the provisions of Section
5167 and Section 5171 of the Revised Statutes,
authorizing the controller of the currency
to require additional deposits 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.
national banking
citation whose deposit OF bonds is less than
the amount of its capital may deposit with
the treasurer of the United States, under
such regulation as the secretary of the
treasury may approve. United States notes
treasury notes of 1850 and silver certificates,
and shall be entitled to receive from the
controller 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 sill
yer certificates deposited by any national
banking association shall not exceed the
amount of its capital; provided that the
ury notes of 1890 and silver certificates de-
posted with the treasurer of the United
States under authority or TINS section shall
not exceed the sum of 100000, 600.
Sec 6. That the secretary of the treasury
shall issue from time to time in his dis
acter as those described in the third sec
ton of this act and shall substitute the
same with the treasurer of the United
States for equal amounts of United
States notes treasury notes of 1890 and sill
yer certificates deposited by national bank
ing associations and the bonds so issued
and substituted shall be charged to the
respective national banking associations
and be accounted for by them at such
prices. rot less than par, as shall repre-
sent the market value of such bonds; and
the United States notes treasury notes of
1890 and silver certificates released. as here
in provided shall become part OF the
general redemption fund and the secre-
tary of the treasury is hereby authorized
TO exchange any of said treasury notes of
1890 and said silver certificates for a like
amount of United States notes; provided.
that the amount Of bonds issued under the