New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-04-06
CURRENCY REFORM BILL,
THE NEW MEASURE INTRODUCED IN
THE HOUSE.


MARY OF THE PRINCIPAL PROVISIONS.
Washington. April THE bill prepared for the
reform OF the currency and the protection OF the
Treasury by the subcommittee OF the House Com
mittee on Banking and Currency was introduced
IN The House to-day The bill prepared by
Messrs. McCleary. OF Minnesota chairman OF the
subcommittee Prince OF Illinois and Mitchell. OF
New-York
general statement OF the purposes OF the COM
mittee was printed days ago. but some
changes have since been made in the details OF the
OH and careful summary has been prepared 0.
us leading provision and its effect existing Ma
"ona' banks This summary is as follows:
DIVISION OF ISSUE AND REDEMPTION.
me ne proposed bill creates a division OF issue and
ssmpon in he Treasury substantially in ac-
mG,nr.ary commission The amount which the Sec
or Se ot me dressgry is authorized to set aside
rer ~. wilma in Excess OF Gafh balance 9f
March FL 1873 Of GiS aaxf permitted reserve 0"
DUTIES OF DIVISION
The Division OF Issue aud Redemption Is author
iz'l 10 redeem legal notes in notes redeem stand
certificates in gold and to make other exchanges
81 currency ana coin Notes redeemed In gold shall
issued 1'''''"' % Nv" "'''" "''''
RESERVE NOTES
Conversion Of legal-tcndcr notes Provision is
"" s into se2 n6os OF 9s 6c 5a@f
assume the current REDEMPTION. but which consil-
or daroa Of 'He Naona 6anE upon All f ars
regarding reserve notes permissive in relation to
expired.
METHOD OF ISSUE
Bank, Banks may pay into the Treasury United States
their ulimpaired capital and receive In exchange
oi ne" t rrm or note known as National reserve
required to be cancelled and destroyed received
me pnrpos" % banking under the act. Treasury
hot"s 81 $50 may be used. and when these cannot
49, W." ,"' rednlrfmci.t ana permit the issue of
! tn reserve notes previously provided FOR had
been .ssued
REDEMPTION OF RESERVE NOTES
Reserve notes to be redeemed on demand by
me bank 70 which they are issued. in lawful money
dempton fund established by existing law This
fnnd Is hereafter required 20 he equal to per cent
notes outstanding issued by the bank and % be
kcp' n gold cola Upon the failure or liquidation
o; National bark. its reserve notes shall be
deemed IN gold coin and cancelled and destroyed.
CURRENCY NOTES or COMMERCIAL ASSETS
Method o. issue-Natlonai banks desiring 10
Issue currency notes based upon their CONNER
amount % the National reserve notes taken by
then nor exceeding b per cont o. their unim-
THE BANK NOTE GUARANTY FUND
currency notes shall he protected by a first lien
upon az the assets OF the bank. and by guaranty
fund %: per cent OF their circulation OF this
furd cannot exceed per cent per year. The guar
amy fund Is to be paid by he banks in gold Current
noncy over The counter o, the bank or in gold from
States Treasurer.
TAXES ON CIRCULATION
circulation In excess 81 g. per cent OF tho "a pital 81
National bank no, secured By United States bonds,
sha1! be- subject to tax OF PEI cent u? 10 80
per cent ~ the capital. and 70 tax Of cent.
above 50 per cent OF the capital. circulation can:
not IN case exceed the unmpairod capital
~ the bank.
CALCULATION BASED OK UNITED STATES
BONDS
ISSUES TO PAR or THE RONDs-No change is
made In ,he status OF National banks desiring 10
continue business hy the deposi, OF bonds as Sc
curiiv for circulating notes. except that they are
authorized 20 increase their circulation 10 the face
KEDI'CTION or BOND DEPOSITS National
United states bonds 10 secure circulation after the
expiration ~ one year by e-fourh OF the amount
Of bonds and after hvo years such bond deposits
shall be- required. The withdrawal Of bonds shall
| not diminish the circulation permitted TO remain
mum amornt ~ bonds required upon the passage
per cent OF tho capital. but not exceeding S0.0
OPERATION OF THE NEW LAW.
STATUS or EXISTING BANKSAll existing
National banks are required 20 accept the proy-
y.ded that such acceptance snail not he con-
struei changing the term Of tho existing charter
Existing National banks which do no, avail them
selves ~ tho option o, issuing notes upon CONNER
rial assets not required TO contribute 10 the
bank note guarantee fund. not subjected to any
tax upon their circulation. and not liable IN
any manner for the notes OF other banks
REQUIREMENTS OF NEW RANKS
New National banks required to invest %
per cent ~ their capital In notes issued In
ex chHuGe FOR legal tender notes. X such notes are
available. and banks whose charters expire after
the oNpi. alton Of three from the passage Of
~" act ur" required 20 comply with tho same pro-
vision.
NEW FORM OF NOTES
All banks ar" required TO accept form OF
notes witch does rot specifically state that the
notes ar~ secured by United States bonds
TAX Upon CAPITAL. AND SURPLUS
National banks required 10 pay tax Of
l-l0 OF per semi -annually upon their capital
surplus and undivided profits.
BRANCH BANKS PERMITTED.