The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-07
A PLAN FOR NEW BANK ISSUES
REDEEMED TREASURY NOTES TO BE
PAID OUT ONLY FOR GOLD.
The Bill Provides Careful Reserve
the indianapolis Plan.

reform Of the currency was introduced in
the House yesterday. 1t is especially de-
signed to protect the treasury of the United
States and to place the bank issues of cur
rency on a safe basis. The bin was pre-
pared by Messrs. James IT. McCleary, of
Minnesota, George w. Prince. of Illinois,
and John Murray Mitchell. of New York,
and was intended as a substitute for the
several measures Of currency reform being
considered by the full committee.
The text of the bill is as follows:
Section /. BE 1t enacted by the Senate and
House OF Representatives of the United
States of America in Congress assembled,
That there is hereby created a division in
the Treasury Department to be known as
the division of issue and redemption under
the charge of an assistant treasurer of the
United States, who shall be appointed by
the president, by and with the advice and
consent of the Senate.
Sec ?. That to the division of issue and
redemption shall be committed all functions
OF the Treasury Department pertaining 10
the issue and redemption of notes and GER
ttihcates and to the exchange of coins; and
the said division of issue and redemption
shall have the custody of the bank-note
guaranty fund and OF the redemption fund
or the national banking associations. and
shall conduct the operations Of redeeming
the circulating notes of national banking
associations, as prescribed by law; and to
this division shall be transferred all gold
coin held against outstanding gold certih-
Gates, all silver dollars held against out
standing silver certificates, all United States
certificates, and all silver dollars and silver
bullion held against outstanding treasury
notes issued under the act OF July II, 1890,
and such amount of subsidiary and minor
coins as the Secretary of the Treasury shall
consider necessary for the issue and ex-
change of such coins, and the funds de-
posted with the treasurer for the redemp-
ton or retirement of the circulating notes
or national banking associations. All ac-
counts relating to the business of this di-
vision shall be kept entirely apart and dis
tinct from those of the other divisions of
the Treasury Department.; and the accounts
relating TO the national banking asSocia-
lions shall be kept separate and apart from
all other accounts in said division of issue
and redemption.
Section g. That a reserve shall be estab-
nsned in the division of issue and redemp-
ton aforesaid by the transfer to it by the
treasury of the United States from the gen.
efal FUNDS OF the treasury OF an amount of
gold, IN coin and bullion, equal to % per
centum of the amount, both of United States
notes and treasury notes issued under the
act OF July IA, 1890, outstanding, and fur
tner sum liz gold equal 10 per centum of
the aggregate amount of the coinage of sill
yer dollars This reserve shall be held as a
common fund, and used solely for the re-
oemplon or said notes and in exchange for
said notes and for silver dollars and sub
sldlary and minor coins, as hereinafter pro-
Vided.
DUTY OF THE SECRETARY.
Sec 4. That it shall be the duty of the
secretary of the treasury to maintain the
gold reserve in the division of issue and re-
demption aforesaid at such sum as shall Sc
cure the certain and immediate redemption
OF all notes and exchange of all silver dol
kirs presented, as hereinafter provided for
and the preservation of public confidence;
ana Tor this purpose he may, from time to
time, transfer to the division of issue and
fle, to-.
otherwise appropriated in excess of a cash
balance or 800, 00,000, said cash balance to be
determined in the same manner in which
II Is now determined; and in addition there
~ ne Is hereby authorized to issue and sell
whenever 1t is in his judgment necessary to
Ine ends aforesaid, bonds of the United
states bearing interest at rate not exceed
ing per centum per annum, payable in
soid coin at the end of twenty years, but
Tsdeemabie In gold coin at the option Of the
onlleo states after one year; and the pro-
Seeus OF all such sales shall be paid into the
DIVISION OF issue and redemption for the
purpose aforesaid.
sec. 3. That the secretary of the treasury
may, ana ne is hereby authorized TO- ex-
cnange gold coin held in the general cash
OF tne treasury for notes held in the division
OF issue and redemption: and he is hereby
further authorized to exchange notes of orr,
denomination for a like amount in notes of
snother reorganization, or notes of one of
IVY GRASSES Iof IKE amount in notes of the.
other class, and may replace notes worn or
unit Tor circulation by new notes of the
same class; but none of these exchanges
shall at any time alter the amount of mon
ey to be held in the said division.
Sec. .. That the division of issue and re-
ooiInptlon snsHll. at Washington and at such
suotreasur1es of the United States, as the
secretary of the treasury NAV from time tn
time designate, on demand:
Gates e0iO NS' 'iA-
Secondary out United States notes for
currency certificates.
Third-Pay out gold coin in redemption of
united States notes and treasury notes of
1890. -'0e' VI
sogrth-Pay out silver dollars for silver
certlncates of any denomination.
tlfth--Issue silver certificates of denomi-
nations of 81, 81 and So in exchange for sill
Yer collars and for silver certificates of de-
Sixth.Pay out gold coin in exchange for
silver dollars
Seventh-Pay out silver dollars held in
Ihe alNlslon OF issue and redemption afore-
salq, and not covered by outstanding silver
yerJncates, in exchange for gold coin
Oilteu states notes, or treasury notes.
Eighth-Pay out United States notes or
treasury notes, not subject to immediate
caHHSeetatlon. In exchange for gold coin.
Nmth-Pay out gold coin in exchange for
subsidiary and minor coins presented in
sums or S2O or multiples thereof and nav
OUT subsidiary and minor coins in sums of
s,V " IsauIitlpIes thereof, in exchange for
Tenth-Pay out in redemption of national
able for that purpose.
Sec Z. That gold certificates and cur
rency certificates shall, whenever presented
and paid or received in the treasury. be re-
tired and Cancelled All provisions of law
authorizing the issue or reissue of gold GER
tineates or currency certificates arc hereby
repealed.
Sec. s. That when the division of Issue
and redemption shall nave paid out gold
coin In exchange for United States notes
and treasury notes presented for payment.
Il shall from time to time cancel such
suiohntS or notes so paid as shall not exceed
the amount of national currency notes is
act. S'Ae0' u thiS
Sec. ?. That the Secretary of the treas
ufy may, in his discretion from any funds
- ~, tne seheIal treasury not set apart under
,aesatoa OF THIS act or otherwise appro-
priated; transfer TO the division of issue
ana redemption any United States notes or
treasury notes which on such fransfer
c9ulC tnen lawfully be Cancelled under The
provisions OF this act IL they had been Pc
s Ss OIL presentation; and when so trans
secretary or the treasury, whenever there
may pc United states notes or frea s1Irv
iioteS ~ the general treasury which are moi
ssailaole as surplus revenue, and which up
~ WISER 20 the DIVISION OF issue and re-
ueupuon could then lawfully be Cancelled
Under the provisions OF this act. NAV fx-
change such notes with the division of 'iss,1a
a1Q redemption for gold coin, and such
notes snail thereupon be Cancelled.
90. ~. Inat United States notes or
PFC our again except for gold coin unless
lnefe sna!i be an accumulation OF such
notea IN the division OF issue and redemp-