Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1898-05-25
5FOr Currency Reform.

removing is dn outline OF Un0 Oil
for currency reform reported by the
committee on banking to the house
of representatives:
The bill provides for the strength
ening of the public credit and the
maintenance of the parity of all our
forms of money by relieving the treas
ury from the current redemption of
the greenbacks and imposing this
obligation upon the national banks.
The bill does not provide for any
issue of long term bonds for the
retirement of greenbacks, nor impose
any charge upon the treasury which
is not paid out of the taxes collected
from national banks.
The bill does not reduce the vol
ume of the currency in the hands of
the people.
The banks are required to exchange
existing greenbacks at the treasury
for a new form of note, called national
reserve notes, to the amount of not
less than 25 per cent. Of their CAPT
tai.
The banks are required to secure the
current redemption of their national
reserve notes by maintaining a fund
of gold coin equal to per cent. of
the reserve notes. National reserve
notes are to be legal tender, and cir
culate as money under the same con-
ditions as the greenbacks.
The inducements to the banks to
exchange greenbacks for reserve notes
are the privilege Of issuing limited
amount Of bank-notes upon their
commercial assets and a partial
remission of the new tax proposed
upon their franchise.
The privilege of issuing currency up
on commercial assets isslntended to
afford a test, in a conservative and
limited manner, of the success of this
system in atfording sufficient supply
of currency at all seasons, of the year,
extending credit accommodations,
and reducing the rate OF interest to
borrowers.
Bank-notes based upon commercial
assets can not be issued in excess Of
either the amount Of the bank-notes
secured by United States bonds nor
the amount invested in reserve notes.
The issue of asset currency in excess
Of 40 per cent. of the paid-up capital
OF the banks is subject to a tax Of 6
per cent. per year.
Existing national banks are not
disturbed in regard to bank-note cir
culation, if they desire to continue to
limit their circulation to notes based
upon United States bonds. They
are permitted to increase their cir
culation to the par value of the
bonds.
Bank-notes based upon commercial
assets must be protected by first
lien upon the assets Of the bank, the
duplicate liability of shareholders,
and a gold guaranT y fund of 8 per cent.
Of this form of circulation.
The remission of tax granted for
taking out reserve notes is equal to
one-half of one per cent. of the
amount of reserve notes for which
the bank assumes liability. This re-
mission is deducted from the tax
upon capital, surplus and undivided
profits, which is levied at the rate of
one-quarter of one per cent. per year.
Branch banks may be esta blished
under regulations of the secretary of
the treasury.
The operations Of the treasury are
divided by thecreation of a division of
issue and redemption for the re-
DENTON of paper money and ex-
changes OF paper and coin. This re"
serve can not be intrenched upon for
the current expenses If the treasury
All paper money except silver Ger
tifcates shall be in denominations of
$40 or more. Silver certificates
shall be in denominations Of 81,
50 and s. only.