The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-07
THE SUBCOMMITTEE'S CURRENCY
RTTT.

The full text of the currency bill agreed
upon by the subcommittee of the committee
en- banking and currency is given in this
issue. 1t has been prepared as substitute
for all the bills before that committee, and
contains many of the features of the bill
presented by the commission of the Indian
apolis monetary conference.
Its first sections create a division of the
Treasury Department to be known as the
division of issue and redemption, which shall
have charge of the issue and redemption
of all issues Of paper money. The functions
of this new division are clearly set forth in
Section G. Some of them are very impor-
tant, such, for instance, as the payment of
gold coin in exchange for silver dollars, and
also the paying out Of silver dollars not
covered by certificates in circulation for
gold coin and United States notes. The pur-
pose of these provisions is to hold the sill
yer dollars as now issued the equal of the
gold dollar. 1t will also do away with the
demagogic charge that silver is made the
poor mans money because silver dollars
cannot be exchanged for gold.
Sections and contain provisions for the
retirement of greenbacks and other treasury
notes. The former section provides that
United States notes to the amount of ma
tional currency notes issued to banks may
be destroyed when redeemed with gold, the
purpose of the trainers of the bill being to
avoid contracting the currency. AS impor-
tant as any feature of the bill is the one
providing for the issue of national bank
notes. For that the whole system is
changed, or can be changed. Such banks
can issue notes to the par value of their
bonds. Two kinds of notes are provided
for the national banks-national reserve
rotes and national currency notes. National
reserve notes are those given to banks by
the treasury in exchange for greenbacks,
for the immediate redemption of which the
banks receiving them shall be held immedi-
ately liable. National currency notes are
the same as are now issued TO banks upon
deposit of bonds.
Another of the more important provisions
of the bill is that which provides an entire
change in the security for national bank
circulation. Should the bill become law,
a new national bank is not required to de-
post bonds, but must purchase national re-
serve notes with greenbacks to an amount
equal to Is per cent. of it's capital, upon
which, without further security, except the
redemption fund and the first liability of
all its assets, the bank can issue an addi-
tional 25 per cent. of the national currency
notes, the former being legal tender except
fer customs. If the bank shall purchase
with greenbacks So per cent. of its capital
stock in national reserve notes it can have
currency notes to the value of its paid-up
and impaired capital.
Still another important feature of the bill
is that hereafter no United States or treas
ury note or bank note shall be of a less de-
nomination than SO. On the other hand,
silver certificates cannot be issued for a
larger amount than s.. Thus it is the pur-
pose of the authors of the bill to utilize
the silver notes and coins to the largest ex-
tent by making them the money in current
circulation and by making both as good as
gold by the redemption of silver dollars
with gold
It seems TO be the design of the authors
OF the bill to remove all possible ground OF
complaint Of those who demand the issue