The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-03-24
BANKING And CURRENCY.
Some Radical Changes in Present
Laws Are Suggested.
METHOD TO RETIRE GREENBACks.
Legal Notes 10 ne substitntcd-silvcr
Dollars Rcdecmnble In Gold, Sill
yer Certificates In silver.

Washington, March 23.--Tbe report of th
republican sub committee of the hous
committee on banking and currency wa
laid today before the full republican mem
bership of the committee. The sub-com
mittee was appointed month ago to re
port general banking and currency meas
ure. The bill they reported is entitled
"a bill to provide for strengthening thu
public credit, for the relief of the United
States treasury and for amending laws re-
ferrlng to National banking associations.
Method OF dealing with greenbacks is not
by direct retirement, but by the substitu-
ton OF legal notes, which the banks are
required to assume and for the redemp-
ton Of which they are required to find gold
| so long as they are conducting bust
| ness.
The principal provisions of the bill fol-
! low:
division of Issue and redemption is
established In the treasury for which the
secretary of the treasury is authorized to
set aside general cash balances in excess
OF $oo, 100000. The United States notes re-
celVen by this division for the redemption
IN gold are to be Cancelled and retired
In proportion as certain substitute cur
rency is issued. No note redeemed in gold
VIII be again paid out except under ex-
ceptional conditions. National banks are
required to assume current redemption
United States demand. notes in order to
obtain circulation based upon their com
mercial assets
A new class of notes, called National re.
serve notes. is to be issued in lieu OF legal
lender notes deposited by the banks with
the treasury and these reserve notes are
10 be redeemed upon demand By the banks
out of the redemption fund, which they
are required to maintain in gold. These
reserve notes are not treated in any re-
spect as bank notes because the banks
are not liable for their ultimate rcdemp-
ton.
The basis of National hank note circula-
tlon Will be the commercial assets of the
banks, but this will be reached only after
a series of years National banks are to
pe permitted to issue currency notes upon
their commercial assets to the amount of
reserve notes Issued to them in return for
deposits of United States notes.
me treasury notes issued under the act
oil July IA, 1890 are to be dealt with event
ually on the same basis as United States
notes. National currency notes based upon
collateral assets are to be secured by the
bank note guaranty fund made up by con-
tributions in gold coin of per cent of the
entire circulation of the bank, and pro-
vision is made for replenlshment of this
fund within certain limits.
National reserve notes Will continue to
be legal tender until received into the
treasury from failed and lquidating banks.
when the liability for them will be assumed
by the government and they will be re-
deemed and cancelled.
Standard silver dollars are to be re-
deemable in gold, but silver certificates ara
Itdeemable only in standard silver dollars,
The parity Of silver with gold is secured
by the gold redemption fund.
SILVER certificates hereafter are to he
issued only in denominations Of 1, and 5
Legal tender notes reserve notes and
currency are not to be issued in depomina-
tions below $40
National banks are required to nav
tax of one-eighth of per cent somi-an- |
hualiy on their capital, surplus and undi |
vided profits
National banks are permitted 10 egtab- |
ish branches under rules TO b. prescrihod |
by the secretary of the treasury,
Inc committee says, In exclamation tint |
lhe provision regarding the assumption of |
egal lender notes by the banks, that thew
nave ehdeavored to adopt system which
Wound be subject TO none OF the CRITICISM,
maze against the issue OF interest bearing
'onas or the taxation OF the people for the
payment of this demand debt. The mr.
,cse and effect of the proposed bill" saws
ne report. lis TO throw upon the National
banks the entire burden of finding gold
or notes OF the country. There is no doubt
u lhelr ability to do this IL il il required
y law. Ihey have the power to regulate
interest rates, within the narrow Limits
marked out by economic law. In such man
er as 10 attract gold TO the country NV
eslricting their circulation when the ne
esslty arises, The system proposed Inv
our committee provides an easy and AIDE.
uate method of obtaining gold for export
rom .he banks without exposing the coun.
ny or the United States treasury IN tho
iarm and CONFUSION which have attended
ola exports during the last five years"