The San Francisco call., 1898-04-13
A CURRENCY REFORM BILL.

I NEPORIS from Washington announce that the H[ House Committee Banks and Banking has framed currency reform bill which the ma ority Is prepared to submit to Congress as soon as way is made for it in the House. Some sanguine supporters of the quoted asserting that it will be adopted this session, and while this may be doubted, the urgency of the issue is such that effort will certainly be made to accomplish it.
 From summary which has been made public 1t appears that of the chief features of the proposed reform is that of throwing upon the national banks the entire burden of finding gold to sustain the paper money of the country It is claimed they have ample power to do this for is said in the preliminary port the bill: "They will have the power to regu- late rates, within the narrow limits marked out by economic law, in such to attract gold to the country by restricting circulation when necessity arises
 The general scheme of the bill announced to con- tain these provisions: A division of issue and demption is established in the national treasury for which the Secretary authorized aside the gen. eral cash balances in excess of $5ooooooo. No redeemed in gold is to be again paid except under exceptional conditions" 2. National banks are quired to assume the redemption of current United States demand notes in order to obtain circulation based upon their commercial assets. }. National banks will be required for year after the passage
 
 States bonds as security for circulation This bond deposit may be reduced one-fourth annually, begin ming one year after the goes into effect 4 class of notes called national notes is to be issued in place of legal tender notes deposited by the banks with the treasury and national banks to be permitted to issue notes upon their commer ca assets to the amount of reserve notes issued to them The purpose of this provision IS to compel the reversion of United States notes into reserve notes, as well to limit the issue of currency upon commercial assets 5. tax of 2 per cent is levied upon currency notes in of Go per cent of the capital of the bank issuing them, and tax of per cent Is levied upon circulation of the same character Tn excess of So per cent of the capital O. The na- tional currency notes to be secured by a guar anty fund made up of a contribution in gold coin of per cent of the entire circulation of each bank The notes also first lien upon all the assets of the bank 7. National reserve notes will continue to be legal tender until received at the treasury when they will be cancelled 8. The parity of silver coin with gold IS to be maintained by gold redemption fund in the treasury g. Silver certificates to be issued hereafter only in bills of $I, $2 and $5 Legal tender notes reserve notes and currency are not to be issued in denominations of less than $1o.
 From this outline it will be seen that the bill is along the lines recommended by the Indianapolis ference though has been pointed out by critic, 1t IS not courageous the bill advocated by that conference, since it does not provide for the speedy retirement of greenbacks and does not declare out right for the gold standard"
 It is possible the bill may be amended in some re- spects before being reported and it is very certain to undergo that treatment by Congress before 1t IS finally adopted In its present form 1t serves to show the di rection that currency reform is likely to take and probably will take at this session unless pre- vents the subject from being brought for consider ation.
 There are some reasons for fearing that the stonng of American Consulates may become a popular amusement among the Latin nations But 1t really