The sun., 1898-06-16
Il GOLD AND SILVER CURRENCY.
Bill Reported to the House which Proposes to
DO Away with Government Notes.


Bill Reported to the House which Proposes to
DO Away with Government Notes.
WASHINGTON. June 15.-At tho meeting of
tho Committee on Banking and Currency to-
day the report OF Messrs. McCleary. Hill, and
Fowler on the bill to strengthen tho public
credit, the relief OF the Treasury. and to amend
the national bank laws, which they were Or
dered some weeks ago to prepare. was present
ed and accepted. and Mr.. McCleary later pre-
sented it to the House. 1t is largely devoted to
a review of the provisions Of the measures and
forecast of their operations. 1t says:
Tho bill reported by your committee looks
ultimately to tho elimination OF Government
paper money from circulation. Whether tho
process will be slow or rapid may depend upon
the disposition of the banks and the turn Of
financial events. The.reserve notos for which
the banks are liable will be gradually reduced
when tho Government assumes the liability for
such notes issued by failed and liquidating
banks. With tho withdrawal of bonded secur.
ity also the ultimate currency Of the country
will consist Of gold and silver coin Of full legal
tender power. and of notes issued by the banks
under the provisions of the proposed bill.
The growth In the wealth Of the country and
in its ability to retain at homo n large portion
States viii tend to swell the rold resourees nasea Of
tho country until gold coin 10 likely to become
a common factor In daily exchanges among the
people. This condition OF affairs will operate
at once to simplify and strengthen tho currency
system and to increase the security afforded by
the proposed law to the holders of bank notes.
The banks will be required, when reserve notes
and legal tender notes have alike disappeared.
ful money by keeping gold and silver coin. and
the present quantity of silver is likely to be SO
completely absorbed for retail exchanges that
the bank reserves will consist almost entirely
OF gold. This being the case. 1t is obvious that
the issue OF banking currency based purely
upon assets, without either bonds or reserve
notes, will involve no risk of undue imitation or
of loss to the note holder.
The bill reported by your committee pro.
poses no change in existing laws regarding re-
serves against deposits The cash reserves re-
quired in reserve cities at the date OF the re-
on Dec. IS. 1897. were $25l ia. $50. and
the cash reserves required in country banks
TI744s The cash reserve, held at 81 tpo Same same
date were $4lo,56s.4 These amounts arc
now held largely, in legal tender notes. but the
which could be filled only by gold. II the
circulation, of the national banks. therefore.
time, should rise to tho amount of their capital
on Dec. l5. 1897, which WAS $629. .655, 1885, the
reserves held against deposits. with tho re-
redemption and for the guaranty of the ulti-
mate redemption of the notes, amounting to o
in themselves exceed S463 600. 900 in gold, or
nearly rs per cent. Of the outstanding notes.
rsncy like this, with additional metallic cur. cur
rency in circulation among the people, that
your committee propose to plant finally. by
the grad al evolution of events, the monetary
system of the United States. We believe that
the arrangements proposed in the bill will ac-
any shock to any vested interest, but that il
will be accomplished 80 certainly that the
measure promising such results win find their
credit greatly enhanced abroad and placed upon
unassailable foundations at home.
dox of Georgia.