The times., 1898-01-21
SITTING MONETARY BILLS.
The Currency Committee Sessions
Nav Continue Indefinitely.


May COntinue Indefinitely.
An all gay session considering tie various
phases Of the new currency bills that are
now before the House Committee on Bank
ing and Currency, was held by that com
mttee yesteday. At the morning ses-
sion, former Secretary of the Treasury
Fairchild was on the witness stand, aud
was questioned principally by Mr.. BrOsius.
who went into the question OF
the soundness OF these bills In
respect TO retiring the greenbacss
OF the Government ana allow ing ma
tionaI banks TO issue currency notes in
their place.
He said that it had seemed to be the
opinion of the twenty-five or more finan-
ciers who had been before the commit tee
within the last six weeks that at least
$500 900 900 of these greenbacks could
be retired with advantage TO the Govern
ment and to the general welfare OF the
country. provided the na tional banks were
allowed to issue their own notes, Mr.
Brosius questioned the wisdom OF this
policy, stating that when the Government
had paid out the gold to redeem these
greenbacks, it would be out that amount
OF gold, and lie wanted 10 know why it
would not he better to sell S200,0OO.O00
in silver, which would resuIt in bringjn into
the Treasury S100,0O0,0 900 III gold and
which. a ; far as the result was concerned.
would be the same.
Mr.. Brosius then took up the question
Of the advisability Of allowing the banks
to hold their own gold reserve. as provided
by the new bills, instead OF buying Govern
ment bonds. as now.
He thought that by scattering the gold
reserve over tie country in this manner
it would tend t. weaken Confidence in tie
stability OF tae finances OF the country more
than keeping it as now. in the Treasury.
Mr. Fairchild differed with his ques-
toner on this point
The cost of bank currency was then
taken up.
Mr. Brosius What does a currency cost
that is issued by a bank?
Mr.. Fairchild-It costs the bank it's cap
ital. and all the things that go 10 secure it
all the expenses that are involved in max
ing and printing it, and all Of the means
that are taken to provide for its certain
redemption. The profit which the bank
makes is the difference bet ween this cost
and the hire which it gets for its use
There is no such thing as a C,stIcsS
currency. This system. however, would pay
the bank better than to first invest it's Sc
curities in Government bonds, and then OBJ
tain currency on then-''
AT the afternoon session of the COM
mittee- Secretary Gage had the stand
and an investigation into the bill prepared
~ Il-nr = tIa,r 60.
was especially taken up.
The Secretary was rather inclined to
criticise Mr. Walkers bill as being too
complicated to he readily understood. He
said: "A banker wants to Know what his
own responsibilities are first. and then he
wants to be sure that everybody else under
stands what theirs are. When you inn
pose upon him ambiguous questions. and
throw him into liabilities that he cannot
appreciate, If he is the kind Of banker /
have the most acqua intanee with. he WI
not walk into the scheme. This situation
is difficult one said he referring to q
certain portion Of a1r. Walkers lii. .'and
looking at it from a bankers point of
view it is hard for ne to comprehend its
details"
II seems to be the disposition of the COM
mittee to sift all of these various bills out
andit is likely that these hearings viii con
tinue indefinitely.