The Owosso times. (Owosso, Mich.) 1897-1926, 1898-06-10
New Currency Reform Bill.
Grand Rapids Herald:

From the Grand Rapids Herald:
There was proposed la the house recently
a currency reform bill, which has received
the Endorsement OF the executive committee
Of the Indianapolis monetary convention.
Briefly stated. this bid proposes the
Strengthening of thr public credit. for the
relief of the United States treasury. and for
ti0nal banking associations" The bill Is
framed to accomplish these results, without
the issue OF interest bearihg bonds and
without cost to the treasury of the United
States. This should recommend 1t. The
protection Of the treasury from demands
for gold and from the necessity for issuing
bonds Is accomplished by imposing upon
the national banks the current redemption
of the government notes The amendment
of the national banking laws is intended. SO
1t is stated. to afford a test. In a c0nserva-
tive and limited manner. Of the system of
basing note issues upon the commercial
purpose of sffording sufficient supply of
currency In every part of the country at all
seasons of the year. extending credit accom-
modations, and thereby reducing the rate of
bill divides the operations Of the treasury
The fiscal operations of collecting revenues
and disbursiDg them for government expen-
ditures are left as at present. A new div-
oir IL Tod 20 .. I'm Aivtoi
of issue and redemption. This division is
to be under the charge OF three comptr0l-
lers, who take the place OF the present
comptroller. To this division is transferred
all sums in excess of cash balance of $50.
600, 900 and all gold and silver coin and bull.
lion now held in the treasury for the pur-
pose of redeeming United States notes,
treasury notes and certificates. The divi-
sion of issue and redemption, as its name
implies, is bureau of redemption, but 1t
must maintain a gold reserve equal to 25
per cent of the outstanding United
States notes and treasury notes, and per
cent of the silver dollars which have been
coined. The proposed national reserve
notes are new form of currency provided
by the bill to replace the existing green
backs. The are legal tender and are in
tended for circulation as currency or for use
In the reserves of banks i'm exactly the same
manner as are the existing greeDbacks.
The money in circulation is not to be reduc-
ed. National banks are required to take re-
serve notes to the amount of 25 per cent of
their capital. Those having charters under
the old law may continue to issue currency
as at present, based upon United States
bonds, and such banks may issue notes up
on all their bond deposits to the par value
of the bonds instead of 80 per cent as at
present. The privilege of issuing currency
based upon commercial assets, without the
deposit of United States bonds, Is granted
to national banks to the amount of 10 per
cent of their paid up capital, out only upon
condition that notes secured by bonds and
national reserve notes are taken in equal
amounts. Branch banks may be establish
ed In the discretion of the secretary of the
treasury. Banks are required to pay tax
of one-quarter of one per cent per year upon
their capital and surplus, and undivided
profit, instead of one per cent as at present
The bill certainly presents some remarkably
strong features.