The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-05-24
THE NEW CURRENCY LAW.

and banking bill reported by the hous
committee. It provides for radlca
changes in the money system OF TIT
Aountry, some of which will be slow II
coming in full effect. but others would
be immediate This bill is entitled "Ar
act for strengthening the public credit
for the relief of the United States
treasury and for the amendment Of
laws relating to national banking as
sociations' 1t is framed to accomplish
these results, without the issue Of in
terest-bearing bonds and without cost
to the treasury Of the United States
The protection Of the treasury from the
demands for gold and from the neces-
sity of issuing bonds is accomplished
by imposing upon the national banks
the current redemption Of the govern
ment notes. The amendment of the
national banking laws is intended to
afford a test, in a conservative and
limited manner, Of the system of bas-
ing note issues upon the commercial
business of the country. with the ulti-
mate purpose of affording a sufficient
supply Of currency in every part Of the
country at all seasons of the year, ex-
tending credit accommodations, and
thereby reducing the rate Of interest to
borrowers.
The bill divides the operations Of the
treasury. The fiscal operations of COL
lecting revenues and disbursing them
for government expenditures are left as
at present, but a new division is Gre
ated, to be known as the division of is
sue and redemption. This division is
10 be under the charge of three COM
ptroIlers Of the currency, who take the
place Of the present comptroller. All
matters relating to the issue, redemp-
ton and exchange of currency, whether
coin, government notes, or bank notes,
are entrusted to the division of issue
and redemption. The secretary of the
treasury is authorized to transfer to it
all funds in excess of a cash balance Of
CSC, 900, 900 and all gold and silver coin
and bullion now held in the treasury
for the purpose of redeeming United
States notes, treasury notes and certi-
ficates. The secretary Of the treasury
is also authorized to transfer to this
division from time to time such sur
plus revenues as the treasury may COR
tain, and TO issue short-term treasury
certificates, if necessary, for the sole
purpose of replenishing the reserve.
The division of issue and redemption
is required to redeem United States
notes and treasury notes in gold, to ex-
change gold coin for silver dollars and
silver dollars for gold coin or other
lawful currency; to redeem silver Ger
tificates in silver dollars, and to make
other ordinary exchanges of currency.
United States notes redeemed in gold
are from time to time to be Cancelled.
The division must contain a gold re-
serve of 25 per cent. Of the outstanding
United States notes and treasury notes
and per cent of the silver dollars
which have been coined.
The present outstanding issues of
United States notes known as green
backs" will cease to be a burden upon
the treasury for redemption in gold. so
far as they are exchanged by national
banks for national reserve notes.
National reserve notes are a new
form of currency provided by the bill
In the place Of existing greenbacks. |
They are legal tender and are intend
ed for circulation as currency or for
use in the reserves of the banks in ex-
actly the same manner as the existing
greenbacks. National reserve notes are
to be issued TO any national bank to |
any amount not exceeding its paid-up |
capital. upon fits surrender to the trea-
sury of an equal amount Of green |
backs.
The United States notes thus receiv-
ed are Cancelled and destroyed. The
banks taking reserve notes are requir- |
ed to contribute to the current re-
1emption fund held in the treasury 5 |
per cent of the amount IF their reserve
notes in gold coin and to replcnish this
reserve whenever it is reduced by the
Of the reserve notes.
The money in circulation is not re-
iuced by any Of the preceding Irovis-
ons. National reserve notes take the
place of the greenbacl1s, for which they
ire exchanged. and gold coin takes the
place of greenbacks which are directly
'edeemed.
Existing national banks are required
o take reserve notes. TO the amount Of
8 per cent Of their capital, but two
privileges are offered the banks in
for their assumption of
he current redemption OF the notes.
)ne of these is the privilege Of issuing
notes upon general assets,
which is set forth fully under the next
General head. The second privilege is
,artial remission Of the tax Of one
ourth of one per cent per year levied
" the bill upon the capital. surplus
md undivided profits of each bank.
The remission thus allowed is at the
ate OF one-half of one per cent per
ear of the amount Of reserve notes is
ued to the bank.
National reserve notes may be re
allied from the banks to which they
lave been issued by The secretary
# the treasury in equitable proper
ions and distributed TO new national