Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1898-03-24
ANOTHER CURRENCY SCHEME
A Measure Placing the Burden Of Coin
Redemption on the Banks.
Provision for Legal Tenders-Ul
mately the Basis Of National
Bank Note Circulation Will Be
the Commercial Assets of Banks.
A Safety Fund to Be Established.
Effects of the Changes.


report of the Republican subcommittee
of the House Committee on Banking and
Currency was laid before the full Re
publican membership of the Committee.
This subcommittee, which was appointed
month ago to report a general banking
and cerrency measure consists of Me
Cleary, of Minnesota, chairman: Mr..
Prince of Illinois, and Mr. Mitchell of
New York The bill they have reported
is entitled, "A bill to provide for strength
enng the public credit, for the relief of
the United States treasury and for the
amendment of the laws relating to nation
al banking associations
The method of dealing with the green
backs is not by direct retirement. but by
the substitution Of a legal tender note,
which the banks are required to assume
and for the redemption Of which they are
required to find the gold SO long as they
are conducting a solvent business.
National banks are required to assume
the current redemption of United States
demand notes in order to obtain crcula-
ton based upon their commercial assets.
A new class of notes. called national re-
legal tender notes deposited by the banks
with the treasury. and these reserve notes
are to be redeemed upon demand by the
hanks out of the redemption fund, which
they required to maintain in gold.
THESE RESERVE NOTES
are not treated in any respect as bank
notes, because the banks are liable for
their ultimate redemption.
The basis of national bank note crcula-
ton will be the commercial assets of the
banks. but this will be reached only after
series of years.
National banks are to be permitted to
issue currency notes upon their CONNER
cial assets TO the amount of the reserve
| notes issued to them in return for de-
posts of United States notes.
Treasury notes issued under the act of
July 4. 1890. are to be dealt with event
ually upon the same basis as United
States notes.
A tax of per cert is levied upon cur
rency notes issued in excess of so per
cent of the capital Of any bank and 6 per
cent when in excess of SO per cent
The national currency notes based upon
commercial assets are to be secured by a.
bank note guaranty fund. made up by
the contribution in gold coin of five per
cent of the entire circulation of the bank
and provision is made for replenishment
of this fund within certain limits.
The national reserve notes will continue
to be legal tender until received into
the trea sury from failed and liqudated
banks. when liability for them will be
assumed by the government and they will
be redeemed and cancelled.
Standard silver dollars are to be re-
decimal BILE in gold, but silver certificates
are redeemable only in standard silver
dollars. The parity Of silver with gold is
| secured by gold redemption fund.
SILVER CERTIFICATES
are hereafter to be issued only in denomi-
nations of 81. 81 and IS. Legal tender
notes, reserve notes and currency are
not to be issued in denominations below
$40
National banks are required to pay a
tax OF X of per cent semi-annually upon
their capital. surplus and undivided
profits.
National banks are permitted to estab-
lish branches under regulations to be
prescribed by the Secretary of the Treas
ury.
The purpose and effect of the proposed
bill" says the report. lis to throw upon
the national banks the entire burden of
finding gold for the notes Of the country.
There is no doubt Of their ability to do
this if it is required by law. They have
the power 10 regulate interest rates. with
in the narrow limits marked out by
economic law, in such a manner as to
attract gold to the currency by restrict
ing their circulation when necessity
arises. The system proposed by your
committee provides an easy and adequate
method of obtaining gold from export
| from the banks without exposing the
| country or the United States treasury to
| the alarm and convulsion which have
attended gold exports during the last five
years