The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-03-24
THE PRINCIPAL FEATURES
INCORPORATES IDEAS OF GAGE
WALKER AND FOWLER BILLS
ANEW CLASS or NOTES TO Be ISSUED
TO be Redeemed on Demand in Gold from
Reserve Fund Of Banks. Standard
Silver Dollars to be Re-
deemed in Gold.
deemed in Gold.

Washington, d. c.. March 23.-Thc
House committee on Banking and Cur
rency to-day brought up the proposed
general currency legislation for this ses-
sion. The report of the subcommittee
appointed to draft the general measure
was made to the full committee by
Representative McCleary, of Minnesota.
1t was read by sections and led to much
discussion.
The subcommittee took as their basis
the four bills introduced at this session.
known as the Monetary Commission.
Gage, Walker and Fowler bills, and
considered the features of those meas
urcS but did not confne themselves to
them. The bill is the result of about
six weeks close conference Of the sub
cOmm5ttee who met most of the time
Mt the private residence of a member
Of the committee.
The bill is entitled "a bill to provide
for strengthening the public credit, for
the relief of the United States Treas
ury and for the amendment Of the laws
relating to national banking associa-
TONS"
The method of dealing with the green
lacks IS not by direct retirement, hut
by the substitution of a legal tender
note which the banks are required to as
sumo and for the redemption of which
they are required 10 find the gold so
long as they are conducting n solvent
business. The principal provisions OF
the bin are as follows:
j. division Of issue and redemption
rs established in the Treasury. for
which the Secretary of the Treasury is
authorized to set aside the general cash.
balances in excess of S50.0O0gO This
excess on March II, 1898, was S1TB.-
139,a32. United States notes received
by this division for redemption in gold
are TO be cancelled and retired i'm pro-
portion as certain substitute currency
as IS issued. No note redeemed in gold
is to he again paid ont except under ex.
ceptonal conditions.
:. National banks are required to as
sume the current redemption of United
States demand notes in order to obtain
circulation based upon their commercial
assets. 4 new class of notes, called
national reserve notes. is to be issued
in ieu of legal tender notes deposited
by the banks with the Treasury. and
those reserve notes are to be redeemed
upon demand by the banks out of the
redemption fund which thy are required
to maintain in gold.
j. The basis Of national bank note
circulation will eventually he the COM
mercial assets of the banks but this will
be reached, only after a series of years.
4. National banks are to be permitted
to issue currency notes upon their COM
mercial assets to the amount of the re-
serve notes issued to them in return for
deposits of United States notes.
D. Treasury notes issued under the act
of July II, 1890 are to be dealt with
eventually upon the same basis as
United States notes.
6. A tax of two per cent is levied upon
currency notes issued in excess of 60
per cent. of the capital of any national
bank, of 6 per cent. when in excess of
80 per cent.
Z. The National currency notes based
upon commercial assets are to be secured
by bank note guaranty fund. made
up by the contribution in gold coin of <
per cent. of the entire circulation of
the bank and provision is made for re-
plenishment of this fund within certain
limits.
8. The national reserve notes will CON
tinue to be legal tender until received
into the Treasury from failed and liqui-
dating banks, when liability for them
will be assumed by the government, and
they will be redeemed and cancelled.
9. Standard silver dollars are to he
redeemed in gold, hut silver certificates
are redeemable only in standard silver
dollars. The rarity of silver with gold
is secured by gold redemption fund.
10. Silver certificates are hereafter to
be issued only in denominations of 81,
81 and 50. Legal tender notes. reserve
notes, and currency are not to be issued
in denominations below SO.