Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1898-03-31
CURRENCY BILL.
Republican Subcommittee Reports
an Interesting Measure.
Twelve Principal Features Burden OF
GreenbROks Upon National BRnkS--
silver Dollar to BE Redeemed la
GOld-Note Giro slatlOn.

WASHINGTON, March "a. The report
of the republican subcommittee to the
house committee on banking and cur
rency was laid to-day before the full
republican membership of the COM
mittee. The bill they have reported
is entitled, "a bill to provide for
strengthening the public credit, for
the relief of the United States treas
nry and for the amendment of the
laws relating TO national banking as
sociations," The method of dealing
with the greenbacks is not by direct
retirement, but by the substitution Of
a legal tender cite, which the banks
are required to assume and for the re-
demption of which they are required
to find the geld so long rs they are
conducting solvent business. The
principal provisions of the bill are as
follows:
/. A division OF issue and redemption is es-
tnblished In tine treasury for which the secre-
tnry of the treasury is authorized to set aside
the general cash balances In excess OF $4,000, 900
This excess last Thursday was sl76 lS0, $50
United States notes received by this division
for redemption in gold are to be cancelled and
retired In proportion as certain substitute cur
rency is issued No note redeemed In gold ls
TO be again paid out except under exceptional
conditions
Q. 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 these reserve
notes are to be redeemed upon demand by the
banks out Of the redemption fund which they
nre 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.
g. The basis Of national bank note circulation
will be the commercial assets Of the banks, but
this will be reached only after series OF years
National banks are to be permitted to Issue
currency notes upon their commercial assets to
the amount OF the reserve notes issued TO them
in return for deposits Of United States notes
s. Treasury notes issued under the act Of July
IA, 1890, are to DO dealt with eventually upon
the same basis as United States notes,
Q. A tax Of two per cent. is levied upon bank
notes issued In excess Of % per cent Of the cap
ital Of any national bank, and tax Of six per
CBIL WnGH III cACeSS OIL oU per CeUL
T. The national currency notes, based upon
commercial assets Of banks, are to be secured
by bank note guaranty fund made up by the
contribution in gold coin of five per cent OF
the entire circulation Of the bank, and provi-
sion is made for replenishment OF this fund
within certain limits
The national reserve notes will continue
to be legal tender until received into the treas
ury from failed and lquldating banks, when
liability for them will be assumed by the gov
eminent and they will be redeemed and can
celed,
o. Standard silver dollars are to be redeem
able in gold, but silver certificates are redeem-
able only in standard silver dollars. The par
ity of silver with gold is secured by gold re-
demption fund
TO- Silver certificates are hereafter to be
issued in denominations Of Il, 81 and S5. Legal
tender notes, reserve notes and currency are
not to be issued in denominations below $40
II. National banks are required to pay tax
Of one-eighth Of one per cent semi-annually
on their capital, surplus and undivided profits.
10 National banks are permitted to establish
branches under regulations to be prescribed by
the secretary Of the treasury