The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-03-24

WASHINGTON. March 23.-The re-
port Of the Republican subcommittee
of the house committee on banking and
currency was laid today before the full
Republican membership of the commit
tee. This subcommittee, which was
appointed a month ago to report q
general banking and currency measure,
consists of McCleary, Of Minnesota,
chairman; Mr. Prince, of Illinois, and
Mr.. Mitchell, of New York
The bill they have reported is en-
titled "a bill to provide for strengthen
ing the public credit, for the relief of
the United States treasury and for the
amendment of the dawsrrelating to ma
tional banking associations"
The method of dealing with the
greenbacks is not by direct retiremenr
but by the substitution Of legal ten
der note, which the banks are required
to assume, and forl the redemption of
which they are required to find the
gold, so long as they are conducting a
solvent business. The principal pro-
visions Of the bill are as follows:
First-A division of issue and redemption
is established in the treasury for which
the secretary Of the treasury is authorized
to set aside the general cash balances In
excess of $4,000. This excess on March
IT, 1898, was s176 1882. United States
notes received by this division for redemp-
ton in gold are to be Cancelled and re-
tired in proportion as certain substitute
currency is issued. No note redeemed in
gold is to be again paid out, except under
exceptional conditions.
Second-Nationa1 banks are required to as
sumo the current redemption of United
States demand notes in order to obtain
circulation based upon their commercial
assets. new class Of notes, called ma
tional reserve notes. Is to be issued in
lieu Of legal tender notes deposited 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 re-
demption.
Third-The basis of national bank note cir
culation will be the commercial assets of
banks, but this will be reached only after
series of years.
Fourth-National banks are to be permitted
to issue currency notes upon their COM
serve notes issued to them in return for
deposits of United States notes.
Fifth-Treasury notes issued under the act
Of July IA, 1890. are to be dealt with
eventually on the same basis as United
States notes.
sixth-A tax of 2. per cent is levied upon
currency notes issued in excess Of 80
bank and Of per Il intIewhen in excess
of 80 per cent. ks J..
seventh-The national currency notes based
upon commercial assets are to be secured
by the contribution in gold coin of 8 per
cent Of the entire circulation Of the bank.
and provision is made for replenishment
of this fund within certain limits.
Eighth-The national reserve notes will
continue to be legal tender until received
into the treasury from failed and llQuidat-
ing banks. when liability for them will be
assumed by the government, and they will
be redeemed and Cancelled.
Ninth-Standard silver dollars are to be re-
deemable only in standard silver dollars.
The parity of silver with gold Is secured
by gold redemption fund.
Tenth-Silver certificates are hereafter to be
issued only in denominations of 81, 81
and S.. Legal tender notes, reserve notes
and currency are not to be issued in de-
nominations below SO. .
Decentralization banks are required to
pay a tax of "a Of per scent, and semi
annually on their capital, surplus and I'M
divided profits.
Twelfth-National banks are permitted to
establish branches under regulations to he
prescribed by the secretary of the treas
Ury.