New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-07
FOR CURRENCY REFORM.
THE MONETARY COMMISSIONS BILL IN
TRODUCED IN THE HOUSE.
BANKING FEATURES ELABoRATE-THE GUAR
ANTEE FUND OBSERVATION-DISCLOSURES TO BE
GIVEN BY CHAIRMAN WALKERS
COMMITTEE.

|
| GIVEN BY CHAIRMAN WALKERS
| COMMITTEE
| Washington. Jan 6.-Reprcsentatlve Overs'ree''
! OF Indiana introduced in the House to-day a COM
prehensve bill for carrying out the plan OF 'he
| Monetary Commission for the reform OF the cur
rency. The bill was referred by Speaker Reed 10
! tho Committee on Banking and Currency. inc
| bill contains forty-seven sections. and embodieS
| IN legislative form every feature or the r'com-
mendations OF the Commission. The first portions
relating to the maintsnance OF the gold stahua'u'
the creation Of the Bureau OF Issue and Redemp-
ton and the gradual retirement OF the legal
tender notes are embodied In tho bill In almost
| the same language as In tho report. The banking
| features are more elaborate. and carefully dehne
| tho character OF tho guarantee fund FOR the pro-
lection OF tho issued on assets. ana inc
manner OF redeeming tho notes OF failed BANKS
| The section dealing with the guarantee fund IS as
| follows
| Section 20 That every National banking asso-
citation shall at all times keep and nave on Ee
for the purpose hereinafter specified sum IN goa
coin equal to per cen, Of ITS on depos shall
constitute fund to be knoWm rd as sna he be- oI bed
| for tho following purpose, and for no other
Whenever the Controller OF the Currency shall
and admission specified in Section 5,226. or by the
report provided for in Section SCI Of tho Revised
| Statutes Of the United States, that any assoca-
ton has refused to pay it's CIRCULATING notes on
demption of such notes from the barknote guaran-
tee fund aforesaid and such notes shall 'herenPon
banking association to redeem rs notes shall have
se ss Of the sd States 2 be- sd
provided by law and the proceeds or such safe
19 ho Gs PoH e Of the currency shall foFhwth
collect, for the benefit OF the fund from me as
according their liability. as declared by this
act. such sum az, with the banks balance IN inc
hanknote guarantee fund. shall equal the amount
OF its circulating notes outstanding And for this
purpose the United States shall, on behalf OF the
upon all the assets OF the association, and such
fund shall be mado good our OF sucn dssfts IN, IN
ever except tho necessary costs and expenses OF
administering the same.
The next session Of the bill provides that when
ever the Controller of the Currency shall ascertain
what deficiency, il any exists between the aggre-
gate collections for the benefit Of the banknote
guarantee fund in the case Of any failed bank ana
the amount OF It's outstanding notes redet med and
to be redeemed from the said fund he shall assess
such deficiency upon all the National banks in pro-
portion to their outstanding at the time OF
the failure of such bank. The provision for the
assessment OF the tax the circulation above the
authorized limit is follows:
Section 25 That every National banking associa-
ton shall psy on or before the last day Of every
month to the Division Of issue ana Redemption
duty imposed at the rate or per centnin per
ennum upon the average daily amount or us citcu-
iating notes outstanding IN excess of co per centum
OF It's capital stock and not In excess or ~ per
centtim OF such capital STOCK and duty imposed
at the rate of per centum per annum upon tho
average daily amount Of such notes outstanding IN
excess OF so per OF its capital stock Circu-
lating notes of any National banking association
shall be deemed and held TO be Outstanding "nen-
,roler Of the Currency to such association In blank
registered and countersigned according 10 law ana
shall not have been returned to the Controller TO-
cancellation or covered by an equal amount 1 Oh
lawful money deposited WITH the Asssah and Re
demption for the retirement OF such notes
The present restrictions tho amount OF circula-
ton which may be withdrawn monthly and also on
new issues of banknotes by banks having mace
Withdrawals within six months are repealed.
Section 81 OF the bill provides for redemption OF
notes IN rnultples OF $1,000 in lawful money on
presentation at tho Treasury or Sub-Treasuries
designated foE rsde4npt4en purposes, Out II - pro
yided that nothing in this act shall be construed
10 Impose upon the United States any liability TOT
the redemption OF the notes OF any National bank
ing nssoc ton yonA the proper application OF tae
redemption and guarantee funds deposited with the
Division OF Issue and Redemption and the enforce
ment OF the remedies by this act provided.
Section s. contains the provision that one-fourtn
OF the reserve shall be held in coin, with the spe-
cihc mandate that nothing in this section. except
as expressly provided. shall be construed to alter
or In any way affect the provisions Of existing law
governing the maintenance OF reserves
Section q authorizes the establishment OF banks
with capital of $25 o0 in towns not exceeding four
thousand inhabitants. and Section - declares mat
It shall be lawful for any National banking asso-
citation 10 establish branches under such rules AMI
regulations as may be prescribed by the Controller
of the Currency, with the approval OF Inc Secre'dy
Of the Treasury"
Section fl provides for at least two examinations
of National banks each year for the rotation OF
examiners and for fixed salaries for examiners.
The amount Of the salaries is TO be collected by
assessments upon the banks.
Provision IS made for the entry OF State banks
into the system, Section A. reading
Any bank or banking association. Incorporated by
special law Of any state or ORGANIZED uhder ths
general laws of any State and having IA paid-up
ard unimpared capital sufficient 10 enitle il 20 be-
come A National banking association under the
In writing Of the shareholders owning not less man
two-thirds of the capital stock OF such bank or
Controller Of the currency. become National
bank under this system under It's former name or
hy any name approved by the Controller or tho
Currency The directors thereof may continue 20
be the directors Of the association so organized
with the provisions Of the law. When the Con-
troller of the Currency has given 10 Such balk OF
banking association certificate that me pr1vslons
OF This act have been complied with such bank or
banking association and all its stockholders. of-
GERS and employees shall have the same powers ana
privileges and shall be subject 70 the same du,les
liabilities and regulations. In all respects, as shalI
have been prescribed for ASSOCIATIONS Originally
organized National banking asSoclatohs u'uet
the proposed act.
The Committee Banking and Currency made
ARRANGEMENTS to-day to hear representatives OF the
Monetary Commission on January Il relative TO the
bill Those TO appear will he ex-senator Edmunds,
representing the Commission and the North ana
ros,. Judge r. s. Taylor. OF Terre Haute. Ind.
renrcsentny the Middle West: J. ". Frees. or
SoIem Y c. representing the gold Democratic
sentimen, Of the South. and ex-Secretary tairch'd
OF New-York.
nro,n,ocrTv WITH RPTTTSH WEST INDIES