New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-03-24

only in standard silver dollars. The parity OF sill
GeT @in sE IN h s pvso Of Issue and Redemption
equal to per cent of the amount OF silver winch
certasass are he.eaf ns to 30 a.
tender notes reserve notes and currency are not 10
be issued in denomlnatiorN below $40.
ax ~ nnn-oiehb Of per- cent semi-annuaily upon
their capital, surplus and undivided prohts -.
,h brancbes mnSer regulations to be prescribed
by the Secretary OF the Treasury.
THE COMMITTEES REPORT.
Tho committee say. in explanation OF the pro-
vision regarding the assumption OF tho legaltender
notes by the banks that they have endeavored to
ADOPT a system which would be subject 10 none
Of the criticism made against the issue OF interest
bearing bonds or taxation of the people for the
payment OF this demand debt. They declare:
The system adopted Is such as to continue 10 the
Government all the benefits OF tho loan without any
OF the Disadvantages OF Its character as demand
obligation. The proposed bill imposes upon the
banks the whole burden Of carving aG
by your committee makes that portion OF the de-
Treasu a loan by tho banks to the Government.
This loan is made without interest and without any
them by the power to issue a banking currency
which Is granted in other sections of the bill There
70 nesme the entire ohligetion as compen2ation Tor
tho franchise and provisions granted the National
banking corporations.
The heavy burden assumed by the bank. must
he given it, due weight IN measuring any additional
privileges which given them by this bill The
eminent now assumed by them upon precisely the
terms the redemption Of their notes
ness 1t IS only when by the refusal to pay such
notes they become nsolvent that the Government
the complete protection Of the holder Of the
and for tho benefit OF the creditors OF the bank by
leaving the remaining assets unimpaired for the
settlement OF their just claims The form OF note
ton guaranteed by the Government. combines the
strongest OF all resources for Its ultimate payment
s Sao" h G Of he SSn
an nat9I% Gss for The dr.
this great wealth and these great resources are
conduct Of proper banking business and the issue
OF circulating notes redeemaoic In coin on demand
converted into cash without loss This security the
Government note lacks and the banknote possesses.
bill in lieu OF the Government notes is called the
| National note. a designation which may be
only the banking resources OF the issuing bank but
the reserve strength Of the National Government.
reserve Of all kinds. /, IS moreover. legal -tender
the banks maintain fr VII" the parity Of ther own nStes
ana for whose parity the Government also is respon
maintain specie payments while the banks. were
unable to do The country is thus provided with
notes substituted FOR the present egatender notes
ana Of all the gold ana silver coin 70 clrcnaon 70
Government is sacrcily pledged"
results which may Follow the suthorty given 10
| the banks 10 assume the Government debt and
Issue reserve notes. IL Is conceivable and prob
able that a large proportion of the present legal
tender notes VIII be converted into reserve notes.
and will cease absolutely be redeemabc at the
Treasury except In the restricted cases OF The fall
ure or li7nlda,ion OF the bank through which they
notes are 6 Hn' sesorscap The OF fa nf
! that they are cancelled when redeemed In gold by
the Treasury will give them a value which will al
once remove all question OF their prompt redemp-
| ton. and win give them substantially the char
! acter OF gold certificates The fact that is
to be cancelled on redemption and not reissued will
tend very greatly TO prevent It's presentation for
! redemption. 49,
The purpose and effect Of the proposed bill
| savs the report. is to throw upon the Na,iona
| banks the entire burden Of finding gold for thu
notes OF the country. There Is no doubt OF their