The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1898-03-24
Y
Republican Subcommittee Of the
House Banking and Currency
Committee
Reports a Bill for strengthening
Public Credit and Other
Purposes.
Banks Required to Assume the
Function Of Providing Gold
for Redemption.

WASHINGTON. March 24.-The report
of the Republican subcommittee Of the
house committee on banking and cur.
rency has been laid before the full Re.
publican membership Of the committee.
This subcommittee, which was APP
pointed a month ago to report a general
banking and currency measure, con-
sists Of McCleary of Minnesota, chair.
man; Prince of Illinois, anu Mitchell of
New York. The bill they have re-
ported 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 Ia VS. re.
lating to national banking associa-
tions.'
The method of dealing with the
greenbacks is not by direct retirement,
but by the substitution of a legal ten.
der 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 4
solvent business. The principal pro.
visions Of the bill are as follows:
l. A division of issue aud redemp.
ton is established in the treasury for
which the secretary Of the treasury is
authorized to set aside the general cash
balances in excess of $50, 600, 600. This
excess on March II, 1898, was $l16..
139, 532. United States otes received
by this division for redemption in gold
are to be cancelled and retired in pro-
portion as certain substitute currency is
issued. No note redeemed in gold is to
be again paid out, except under excep.
tional conditions.
Z. National banks are required to
assume the current redemption Of
United States demand notes in order to
obtain circulation based upon their
commercial assets. A new class of
notes, called national reserve notes is
TO be issued in lieu of legal
tender notes deposited by the
banks with the treasury and
upon demand by the banks out Of the
redemption fund they are required
to maintain in gold. These reserve
notes are not treated in any respect as
bank notes, because the banks are not
liable for their ultimate redemption.
3. The basis of national bank note
circulation will be the commercial as.
sets Of banks, but this will be reached
only after a series Of years.
4. National banks are to be permit.
ted to issue currency notes upon their
commercial assets to the amount of the
| reserve notes issued to them Ill return
for deposits of United States notes.
8. Treasury notes issued under the
act of July ii, 1890, are to be dealt with
eventually on the same basis as United
States notes.
6. a tax Of 2 per cent is levied upon
currency notes issued in excess of 50
per cent Of the capital of any national
bank, and Of 8 per cent when in excess
of 50 per cent.
7. The national currency notes based
upon commercial assets are, to be SO.
cured by a bank note guarantee fund,
made up by the contribution in gold
coin, Of ) per cent OF the entire circu.
lation of the bank, and provision is
made for re~plenishment Of this fund
within certain limits.
=. The national reserve notes will
continue to be legal tender until re.
celved into the treasury from failed
and hquldating banks, when liability
tor them will be assumed by the gov.
ernment, and they Will be redeemed
and cancelled.
9. Standard silver dollars are to be
r~edeemable Ill gold, but silver certif.
Gates are redeemable only l.. standard
s. yer dollars. The parity Of silver
with gold IS secured by u god redemp.
ton fund.
70. Silver certificates are hereafter
to be issued only in denominations OF
81, 81 and s.. Legal tender notes, re.
serve notes and currency are not to be
issued in denominations below $40.
IL. National banks are required to
pay a tax Of one-eighth OF one per cent
semi.annually on their capital, surplu:
and undivided profits.
II. National banks are permitted tt
establish branches under regulations to
be prescribed by the secretary of the
treasury.