The daily morning journal and courier., 1898-04-06
THE HOUSE CURRENCY BILL
MEASURE FOR REFORM INTRO
 DUCED YESTERDAY.

Synopsis of Its Provisions-The Division of Issue and Redemption Established Substantially as in the Plan of the Mone- tary Commission-Reserv Notes.
 Washington, April 1.-The bill pre- pared for the reform of the currency and the protection of the treasury by the subcommittee of the house com- mittee on banking and currency was introduced in the house to-day. The bill was prepared by Messrs. McCleary of Minnesota, chairman of the sub- committee; Prince of Illinois and Mitchell of New York.
 A general statement of the purposes of the committee was printed some days ago, but some changes have since been made in the details of the bill, and careful summary has been pre- pared of its leading provision and It's effect upon existing national banks. This summary is as follows:
 The proposed bill creates division of issue and redemption in the treas- ury, substantially in accordance with the provisions of the. plan of the mon etary commission The amount which the secretary of the treasury is au- thorized to set aside for the purpose of this division is all the money in the treasury in excess of a cash balance of $50, 100000. This would have permit ted a reserve on March 31, 1898, of $176,- 157.327.
 DUTIES OF DIVISION.
 The division of issue and redemption is authorized to redeem legal notes in notes, redeem standard silver dollars in gold, but not to redeem silver cert1- ficates in gold, and to make other ex- changes of currency and coin. Notes redeemed in gold shall be cancelled to the amount of new bank notes ls-. sued.
 Provision is made for the conversion of existing legal tender notes into re- serve notes, of which the banks assume the current redemption, but which con- stitute a liability of the government upon the failure or liquidation of a na- tional bank All features regarding reserve notes are permissive to exist ing national banks whose charters have not expired.
 Banks may pay into the treasury United States notes to any amount not exceeding 35 per cent. of their unlrn- paired capital, and receive in exchange a new form of note, known as national reserve notes. The United States notes surrendered are required to be cancel led and destroyed as received. When United States notes cannot be obtained for the purpose of banking under the act, treasury notes of 1850 may be used, and when these cannot be obtained the secretary of the treas- ury may waive the requirement. and permit the issue of notes upon com- mercia1 assets to the same amount as if the reserve notes previously provid- ed for had been issued,
 REDEMPTION OF NOTES.
 Reserve notes are to be redeemed on demand by the bank to which they are issued, in lawful money over it's own counters, or from the five per cent. redemption fund established by existing law. This fund is hereafter required to be equal to 5 per cent. of the amount of reserve notes, as well as currency notes, outstanding, issued by the bank, and to be kept in gold coin. Upon the failure or liquidation of a national bank it's reserve notes shall be redeemed in gold coin and cancelled and destroyed.
 National banks desiring to issue cur- rency notes based upon their commer- cial assets may receive and issue notes to the amount of the national reserve notes taken by them, not exceeding 35 per cent. of their unimpaired capi- tai.
 Currency notes shall be protected by a first lien upon all assets of the bank and by guarantee fund of per cent. of their circulation of this character. Assessments to make good the guaran- tee fund cannot exceed 1 per cent. per year. The guarantee fund is to be paid by the banks in gold. Current redemp- tion of currency notes shall be in law ful money over the counter of the bank or in gold from the redemption fund in the custody of the United States treas- urer.
 Circulation in excess of 69 per cent. of the capital of the national bank, not secured by United States bonds, shall be subject to a tax of 2 per cent. up to 80 per cent. of the capital, and to a tax of per cent. above 80 per cent. of the capital. Circulation cannot'in any case exceed the uninlpaired capital of the bank.
 No change is made ill the status of national banks desiring to continue business by the deposit of bonds as se- curity for circulating notes, except that they are authorized to increase their circulation to the face value of the bonds.
 National banks may reduce each year their deposits of United States bonds to secure circulation after the expira- ton of one year by one-fourth of the amount of bonds, and after five years no such bond deposit shall be required. The withdrawal of bonds shall not di- nninish the circulation permitted to re- main outstanding against commercial assets. The minimum amount of bonds required upon the passage of the act is the same as under existing law--25 per cent. of the capital, but not exceed ing $5O,00o.
 All existing national banks are re- Guired to accept the provisions of the new law within one year, but it is pro- yided that such acceptance shall not
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