Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-03-24
CURRENCY REFORM,
RESULT OF THE LABons OF rmz
HOUSE sUB-coMuIrrEE
THE PROPOSED GENERAL MEASURE.
Features OF Bill BASED ON Monetary
Commission. Gage. Walker, and
Fowler Prepositions-A New Note
for the Greenback.

| WASHINGTON, March 27.-Thc Honse
'Committee on Banking and Currency to-
| day brought up the proposed general cur
rency legislation for this session. The re-
port Of the subcommittee appointed ia
| draft general measure was made 20 Tho
fun committee by Representative Me-
Cieary, of Minnesota. II was read by sec.
.tions, and led to much discussion. Tho
subcommittee took as their basis tho
four bills introduced at this session,
known as tine Monetary Commission.
Gage, Walker and Fowler bills, and con.
sidered the features OF these measured
but did not conine themselves to them.
The bill is the result Of about six weeks
close conference Of the subcommittee.
who met, mcst OF the time. at the private
residence of a member. The bill is en-
titled:
"A bill 70 provide for strengthening the
public credit, for the relief OF the United
States Treasury, and for the amendment
of the laws relating to national banking
associations"
The method of dealing with the green
the substitution Of legal-tender note.
which the banks are required 10 assume
and for the redemption OF which they are
required to find the gold. so long as they
are conducting solvent business. Ths
principal provisions os the bill are as fol-
lows:
BREAK OF ENDLESS CHAIN.
l. A division Of issue and redemption
is established I'm the Treasury Depart-
ment, for which the Secretary OF tho
Treasury is authorized to set aside the
general cash balances I'm excess OF $4,000
co., This excess on March II, 1898. was
SIG, 159.532. United States notes received
by this division for redemption In gold are
to be cancelled and reduced In proportion
as certain substitute currency IL issued.
No note redeemed I'm gold Is to be, again
paid out, except under exceptional jcondi-
tions
2 National banks are required 10 as
sumo the current redemption OF United
States demand notes, I'm order to obtain
circulation based upon their commercial
assets. new class OF notes, called ma
tional reserve notes, is to be issued in
lieu Of legal-tender notes deposited by the
banks with the Treasury. and ghese re-
serve notes are to be redeemed upon de-
mand by the banks out of the redemption
fund which they are required TO maintain
I'm gold.
3. The basis OF national bank note cir
cuIation will eventually be the CONNER.
cial assets of the banks. but this will ba
reached only after q series OF years
4. National banks are to be permitted
TO issue currency notes upon their assets
TO the amount OF reserve notes issued 10
them I'm return for deposits OF United
States notes.
s. Treasury notes issued under the act
Of July T. 1880. are to be dealt with even
tually upon the same basis as United
States notes.
6. A tax Of per cent. is levied upon
currency notes issued in excess OF 60 per
cent. of the capital OF any national bank.
and of per cent. when In excess OF 80
per cent.
BANK-NOTE GUARANTY.
I. The national currency notes based
upon commercial assets are to be secured
by a bank-note guaranty fund. made up
by the contribution I'm gold coin Of per
cent Of the entire circulation OF the bank,
and provision is made for replenishment
of this fund within certain limits.
g. The national reserve notes will con-
tinue TO be legal tender until received
into the Treasury from failed and liqui-
dating banks, when liability Tor them VIII
be assumed by the government and they
will be redeemed and cancelled.
g. Standard silver dollars are to be re-
deemable in gold, but silver certificates
are redeemable only in standard silver
dollars. The parity of silver with gold
is secured by "A gold redemption fund.
TO- Silver certificates are hereafuer "a
be issued only In denominations OF 81, s.,
and s.. Legal-tender notes, reserve notes.
and currency are not TO be Issued in de-
nominations below $40.