Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1898-03-31
CURRENCY BILL REPORTED.
A Financial MEASURE Laid Before the House
Com mittse on Banking and Cureency
By Republican Sub Committse.

WASHINGTON, March A.-The report
of the republican subcommittee to the
house committee on banking and cur
rency was laid to-day before the fun
republican membership Of the COM
mittee. The bill they have reported
is entitled, "A bill to provide for
strengthening the public credit, Dor
the relief of the United States treas
ury and for the amendment. of the
laws relating to national banking as
sociations." The method OF dealing
with the greenbacks is not BY direct
retirement. but by the substitution OF
legal tender note, which the banks
are required to assume and for the re-
demption Of which they are required
to find the gold so long as they are
conducting solvent business. The
principal provisions Of the bill are as
follows:
|. A division of issue and redemption Is es-
tablished in the treasury for which the secre-
tary of the treasury is authorized to set ASIDE
the general cash balances in excess OF 5OO0O,VG'
This excess last Thursday was slI6 lSs, OH
United States notes received by this division
for redemption in gold are TO be Cancelled ana
retired in proportion as certain substitute cur
rency is issued No note redeemed in gold Is
to be again paid out except under exceptional
conditions
Nat bar iyc rnuuirn6 IN negumn the
current redemption of United States demand
notes in order to obtain circulation based upon
their commercial assets A new class OF notes.
called national reserve notes, is to be issued in
lieu Of 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. These reserve
notes are not treated In any respect as bank
notes, because the banks are not liable for their
ultimate redemption,
g. The basis OF national bank note circulation
will be the commercial assets OF the banks, but
this will be reached only after serNs OF years.
A. National banks are to be permitted TO issue
currency notes upon their commercial assets to
the amount Of the reserve notes issued to them
III return lOT utpoSltS vi Uulucu SVuooo hoVo'
s Treasury notes issued under the act Of July
IA, 1880 are to be dealt with eventually upon
the same basis as United States notes.
g. A tax of two per cent is levied upon bank
notes issued in excess Of 90 per cent" Of the cap
ital Of any national bank and tax OF six per
cent when in excess OF 10 per cent.
L The national currency notes. based upon
commercial assets of banks, are to be secured
by bank note guaranty fund made up by the
contribution in gold coin of five per cent OF
the entire circulation OF the bank, and provi-
sion is made for replenishment Of this fund
within certain limits
s. The national reserve notes will continue
to be legal tender until received into the treas
ary from failed and lqudating banks, when
liability for them will be assumed by the gov
eminent and they will be redeemed and can
celed.
O. Standard silver dollars are to be redeem
able In gold. but silver certificates are redeem
able only in standard silver dollars. The par
ity of silver with gold is secured by q gold re-
demption fund
TO- Silver certificates are hereafter to be
issued in denominations of II, w and VI. Legal
tender notes, reserve notes and currency are
not TO be issued in denominations below SlO
II. National banks are required to pay tax
Of one-eighth OF one per cent semi-annually
on their capital surplus and undivided profits.
70 National banks are permitted to establish
branches under reguationsto be prescribed by
the secretary of the treasury,