The Advocate and news., 1898-03-30
The AdmInIstratlOn currency BIII.


The Administration Currency Bill.
Last Wednesday an administration
bank bill was reported by sub-cOm-
mlttee to whom the subject matter had
been referred. 1t is carefully drawn,
covering all the points brought out in
the Presidents message and In the re-
port Of the Secretary of the Treasury as
well as what more was advanced In that
officers testimony before the House COM
mittee and In the Presidents speech at
the manufacturers banquet January 9th
last.
The Secretary, in his statement to the
committee, very clearly announced the
object of his plan, and 1t was as bold as
1t was clear--"to more thoroughly com
NIT the country to the gold standard. y
That covers the whole ground, but Its
simplicity looks more like business than
law. It is so simple that there is no
room for doubt about its meaning. It's
brevity and force fasten themselves on
the mind and stay there without worry
ing or fretting anybody concerning de-
tails. The Secretary Is business man.
His bank in ChiCagOis big enough to
swallow all the banks In Kansas with
out Winking.
But here comes committee OF lawyers
whose business 1t is to put this commit
ment in sections and sub-sectiOns so as
to get all parts of the delicate machinery
well fitted in place and In working order
So elaborate is this new bill that q whole
column of an ordinary newspaper Is re-
Quired to give its outlines. The bill is
entitled "a bill to provide for strength
enlng the public credit, for the relief OF
the United States treasury for the
amendment Of the laws relating to ma
tlonal banking associations"
Here are few of the leading points:
/. A division Of issue and redemption
is established in the treasury for which
the Secretary Of the Treasury Is author
lied to set aside the general cash bal
ances In excess OF $50,00O,000.
2. National banks are required to as
sumo the current redemption OF the
United States demand notes in order to
obtain circulation based upon their COM
merCial assets.
3. A new class of notes, called national
reserve notes is to be issued In lieu of the
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 are required to maintain in
gold.
A. The basis Of national bank note cir
culation will be the commercial assets Of
the banks, but this will be reached after
q series Of years.
s. National banks are to be permitted
to issue currency notes upon their COM
meTcial assets to the amount OF the re-
serve notes issued to them In return for
deposits of United States notes.
6. The parity Of silver with gold Is Sc
cured by a gold redemption fund.
Z. Standard silver dollars are TO be
redeemable in gold, but silver certificates
are Fedeemable only In standard silver
dollars.
8. Treasury notes issued under the act
of July IA, 1890, are to be dealt with
eventually on the same basis as United
States notes.
9. The national reserve notes will con-
tinue to be legal tender until received
into the treasury from failed and hqui-
dating banks, when liability for them
will he assumed by the government and
they will be redeemed and cancelled.
10. National banks are permitted to
establish branches under regulations to
be prescribed by the Secretary OF the
Treasury.