The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-03-24
CURRENCY AND THE CREDIT.
bill OF THE BANKING AND CUR
RENCY COMMITTEE.

Measure Reported by the sub-COm-
mittee Read by Sections and Dis
cussed by the Full COmmittee-Fhe
Bills known as the Monetary Com
mission. Gage. walker and FOVv-
Ter BILLS Used as "a Basis for the
Committee Measure.
Washington, March 23.-The House com
mittee on banking and currency to-day
brought up the proposed general currency
legislation for this session. The report of
the subcommittee appointed to draft the
general measure was made to the fun com
mittee by Representative McClear of Min
nesota 1t was read by sections and led
to much discussion.
The subcommittee used as their basis
the four bills introduced this session,
known as the monetary commission, Gage,
Walker and Fowler bills and considered
the features of those measures but cid
not confine themselves to them. The bin
is the result OF about six weeks close
conference of the subcommittee, who met
most of the time at the private residence
of a member.
The bill is entitled A,bill TO 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
backs is not by direct retirement. but by
the substitution of a legal tender note
which the banks are required to assume
and for the redemption of which they are
required to find the gold so long as they
are conducting a solvent business.
The principal provisions of the bill are
as follows:
l. A division of issue and redemption is
established in the treasury. for which the
Secretary of the Treasury is authorized
to set aside the general cash balances in
excess of 100000 This excess on March
II, 1898. was SIG, 1873, 5S2 United States
notes received by this division for redemp-
ton in gold are to be cancelled and retired
in proportion as certain substitute cur
rency Is issued No note redeemed in gold
is to be again paid out except under eX-
ceptional conditions.
2. National banks are required to assume
the current redemption of United states
ton based upon their commercial assets.
A new class of notes, called national ie-
serve notes. is to be issued in lieu Of le-
gal tender notes deposited by the banks
with the treasury, and these reserve notes
are to be redeemed upon demand by the
banks out of the redemption fund which
they are required TO maintain in gold.
8. The basis of national bank note CT
culation will eventually be the CONNER
cial 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 CONNER
clad assets to the amount of the reserve
notes issued to them in return for de-
posts of United States notes.
8. Treasury notes issued under the act
of July Il, 1890 are to be dealt with event
ually upon the same basis as United
States notes.
g. 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 50
per cent.
Z. The national currency notes, based
upon commercial assets, are to be secured
by a bank note guaranty fund, made up
by the contribution in gold coin of per
cent of the entire circulation of the banks
and provision is made for replenshment of
this fund within certain limits.
8. The national reserve notes viii con-
tinue 10 be legal tender until received into
the treasury from failed and liquidatinS
banks. when liability for them will be as
sunled by the government and they will
be redeemed and cancelled.
9. Standard silver dollars are to be re-
tdeemable 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.
10. Silver certificates are hereafter to be
issued only in denominations of 81, 81 and
So. Legal tender notes, reserve notes and
currency are not TO be issued in denomina-
tions below $40.