The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-03-24
National Banks Charged With En-
tire Work Of Redemption.
4 New National Currency to he Sub
Are interchangeable for Gold 1t
Any National Bank, but Only Re.
when Part Of the Assets of an
InsOlvent Bank-All other Forms
of National Notes Will BE Gradu-
ally Retired-Banks to Issue Notes

WASHINGTON March 23-The report
OF the Republican subcommittee to the
house committee on banking and currency
was laid before the full Republican men,
bership OF the committee today. The COM
mittee. which was appointed month
ago 10 report general banking and
currency measure. consists OF McCieary
of Minnesota. chairman; Prince Of Illinois
and Mitchell of New York. The bill they
have reported is entitled "A bin 10 pro-
for the relief of the United States treas
ury and for the amendment OF the laws
relating TO national banking assoca-
tions.
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
The principal provisions of the bill are
as follows: -
First-A division Of issue and redemp-
ton is established in the treasury. for
which the secretary Of the treasury Is au-
fhorized TO set aside the general cash
balances in excess OF $50 60 00o. This ex-
cess on March II. 1895, was $l76.l a32.
United States notes received by this div
tion for redemption in gold are to be cam
ceIed and retired In proportion as certain
subsequent currency Is issued. 40 note
redeemed in gold is again TO be PAID out.
except under exceptional conditions.
SpgOnH-NHfi0nat n
assume the current redemption of United
States demand notes, in order to obtain
circulation based upon their commercial
assets. A new class of notes, called ma
tionai reserve notes. are to be issued in
lieu of the legal tender notes deposited
by the banks with the treasury, and these
reserve notes are to be redeemed upon
demand by the banks. out of the redemp-
ton fund which they are required TO
maintain in gold These reserve notes
are not treated in any respect as bank
notes. because the banks are not liable
for their ultimate redemption.
The basis of national note circulation
Will be the commercial assets of the
banks But this will be reached only
after series of years.
Fourth--Nationa: banks are TO be per-
mitted 10 issue currency notes on their
commercial reserve to the amount or the
reserve rotes issued TO them in deposit
for United States notes.
Fifth-Treasury notes issued Under the
act of July IA, 1890, are to be dealt with
eventually on the same basis as United
States notes.
Ssxth-A tax Of per cent is levied upon
currency notes issued in excess OF 6o per
cent. of the capital OF any national bank.
and of per cent when in excess OF 80
per cent.
Seventh-The national currency notes.
based unon commercial assets, are 10 be
secured by bank note guaranty fund.
made up by the contribution in gold COIN
of 5 per cent. OF the entire circulation OF
the bank and provision is made for re-
nlenishment OF this fund within certain
limits
Eighth-The national reserve notes viii
continue TO be legal tender until received
into the treasury from failed and hdui-
dating banks. when liability for them viii
he assumed by the government and they
Will be redeemed and Cancelled.
Ninth-Stantiar rd silver dollars are 10 he
redeemable In gold. but silver certificates
will be redeemabie only in standard silver
dollars rhe parity OF silver with gold
is secured by gold redemption fund.
Tenth-Siver certificates are hereafter
to be issued only In denominations OF IL
81 and 81. Legal tender notes. reserve
notes and legal currency are not 10 be
issued in denomina tions below tlo.
Egeven;h~National banks are required 20
nav a tax of oue-eiehth of per cen.
ser,i-annually on she-r capi'ai, surplus
and undivided profits.
Twalfth-National banks are permitted
IN establish branches under regulations
,o ne prescribed by the secretary o, the
treasury.
The committee SAYS IN explanation o.
the provision regarding the assumption
% legal tender notes by the banks that
they have endeavorei 10 adopt system
which would be subject 70 none of the
criticisms made against the issue % in
teres.-hearing bonds or the taxation OF
tha people for the payment q
this demand debt. They declare
tina, the system adopted is such
as 10 continue 10 give ali profits 81 the
, lean without any G, The disadvantages
Of us character as a demand obligation.
TIE rroposei bill imposes upon the ban6s
the whole burden Of carrying and sustain
ing tbs debt.
There is no proat o. return 20 the
banks thus carrying the nations debt.
and they are rsQaired b. the bill 20 as
surn@ the entire Obligation as compensation
for the franchise and privileges granted
10 national banking corporations
The heavy burden assumed by the
rasks snuss ne gwen its due weight. in
measuring airy additional privileges which
are givea them by this oiii. The banks
a1e 1saaxxA 10 redeem This debt ol -ths