The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1898-03-24
TO REFORM CURRENCY.
House Banking and Currency Submit a
Bill.

the Republican subcommittee Oh one
House committee ON banking and cur
roncy was laid today before the full Re-
publican membership of the committee.
This subcommittee which was ap-
pointed a month ago to report general
banking and currency measure, consists
of MIR. McClary of Minnesota, chairman;
Mr.. Pierce of Illinois, and Mr.. Mitchell
of New York.
The bill they have reported is enGltieu
IA bill to provide for strengthening ons
public credit, for the relief OF bhe on!1eo.
States treasury and for the amenaneno VI
the laws relating to national banking as
sociations.
The method of dealing with the green.
backs is not by direct retirement, puC ny
the substitution of a legal tender hote,
which the banks are required TO assume
and for the redemption of which they are
required to find the gold, SO long as 'iiey
are condcting solvent business. ,.,,
The principal provisions of the Dill are
as follows: ,a,.;o
IA division of issue and redemption
is established in the treasury, lor Wnlc1
he secretary of the treasury Is auGhofizeu
to set aside the general casn pHiailce ~
excess of $50, 600, 600. Ihis excess on
March II, 1898, was SIG, l39, ooZ. ChIeeo
States notes received by thls ulsis i1nd ior
re6emption in gold are to be cance!Ieo.
National banks are required to as
sn,na the current redemption OF United
Skates demand notes in order to obtain
circulafion based upon their commercial
assets, A new class of notes, called
national reserve notes, is to be issued IN
lien of legal tender notes deposited by
the banks with the treasurer and these re-
serve notes are to be redeemed by the
hanks out of the redemption fund. which
they are required to maintain in gola.
The reserve notes are not treated in any
respect as bank notes.
3.-The basis of National bank note cir
culation will eventually be the CONNER
cial assets of the bank. The result Will
be reached. however. only after a series OF
years. National banks will continue to
be required during one year after the pas
sage of this act to maintain the minimum
amount of United States bonds as securi-
ty for circulation which Is req u1red by
existing law, but they will be permitted
to issue notes to the face value of these
bonds. This bond deposit may be reduced
by one fourth annually, beginning one
year after the passage OF the ACT.
National banks are to be permitted
to issue current notes upon their CONNER
oiaI assets to the amount OF the reserve
notes issued TO them in return for deposits
of United States notes.
5.-Treasury notes issued under the act
of July IA, 1890, are to be dealt with
eventually upon the same basis as United
States notes. 7.0i
"a tax of 2 per cent is levied upon
currency notes issued in'excess of sixty
per cent of the capital of any national
bank. A tax of per cent is levied upon
circulation OF the same character IN eA-
cess of so per cent Of the capital.
7.-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 nye
per cent of the entire circulation Oh tne
bank.
s. The national reserve notes will con-
Time to he legal tender until received in
to the treasury from failed and l1qulda-
tion banks, when liability for them will
be ass umed by the government and they
will be redeemed and cancelled.
9.-Standard silver dollars are to be re-
deemabIe in gold, but silver certificates
are redeemable only in standard silver
dollars. The parity of silver with gold Is
secured by gold redemption fund de-
posted in the division of issue and re-
demption, equal to five per cent OF the
amount of silver which has Eeen colnsd.
1O.-Silyer certificates are hereafter to
he issued only in denominations of 81, 50,
and So. Legal tender notes, reserve notes
and currency are not to be issued In de-
nomi nations below $40.
Irrational banks are required to pay
a tax of / 8 of per cent semi annually
upon their capital, surplus and UNDIVIDED
profits. 49,,
establish branches under regulations to
be prescribed by the secretary OF the
treasury.
The committee say in explanation OF
the provision regarding the assumption
of the legal tender notes by the banks
that they have endeavored to adopt a sys-
TEN, which would be subject to none OF
the criticism made against the issue OF
interest bearing bonds or the taxation of
the people for the payment OF this demand
debt. ,agg
The note which it is proposed to issue
under this bill in lieu of the government
notes is called the national reserve notes.
1t is a legal tender note whose parity
with gold is assured SO long as the banks
maintain the parity of their own NOTES
and for whose parity the government also
is responsible.
The country is thus provided with an
ample legal tender currency, CONSISTING
of all the notes substituted for the present
| legal tender notes, and OF all the golo
and silver coin in circulation to the main
tenance of whose parity the faith OF the
government is saoredly pledged.
The purpose and effect of the proposed
bill, says the report, is to throw upon the
| national banks the entire burden OF lind
ing gold for the notes of the country.
There is no doubt of their ability to DO
this il required by law. a.,
The system proposed by the committee
provides an easy and adequate matnod OF
obtaining gold for export from the banks
without exposing the country. or the
United States treasury to the alarm and
CONFUSION which have ATTENDED gold ex