The Providence news. (Providence [R.I.]) 1891-1906, 1898-03-23
BANKING DCURRENCY



Provision Is made that thew shall cease to
be required - q basis Of circulation when
the secretary of the treasury 10 satisfied
that there is no longer q sufficient amount
available to meet the demands for new
banks and ipcreased circulation.
9-<BcNndard silver dollars are to be re-
deemabie In gold. bus silver eertincates
dollars. The parity OF silver with gold
Is secured by gold redemption fund.- de-
posted In the division Of issue and re-
demption equal to five percent Of the
amount of silver which has been coined.
10-Said silver certificates are hereafter
to be issued only In denominations OF VI,
~ and %. Legal tender notes, reserve
notes and currency are not to be Issued In
denomiuations below $l0
11-Nafional banks are required to Day
tax OF Is OF ] percent semi-nnnuaiiy
upon their capital, surplus and undivided
profits.
i9-Nationa banks are permitted to es-
tablish branches under regulations to be
prescribed BY the secretary of the treasury
The committee say In explanation Of
the provision regarding the assumption OF
the legal tender notes by the banks That
they have endeavored to adopt system
which would Do subject TO none of the
criticism made against the interest'bear-
ing bonds of the taxation 0f the people
l0T J00 VdyI0tnt "a tufb dCiiona WV.
" The system adopted Is such as to con-
tinus to the government all the benefits
of the loan without any Of the disadvan-
tages of its character as demand cbli-
CATION. The proposed bill imposes upon
the banks the whole burden OF carrying
and sustaining this debt.
The form OF the proposition submit
ted by your committees makes that por-
tion of the demand debt which Is not now
covered by gold I'm the treasury loan by
the banks to the governmnt. This loan In
made without interest and without any
compensation to the banks except what Is
afforded them by the power to issue q
banking currency which Is granted In
other sections of the bill There IL no
proft or return to the banks thus carry
ing the nations debt, and they are re-
quired by the bill to assume the entire
obligation as compensation for the fran
chise and provisions granted the national
banktng corporations.
"The heavy burden assumed by the
banks must he given Its due weight In
measuring any additional privileges
which are given them by this bill lhe
banks are required to redeem this debt OF
the government now assumed by them
upon precisely the same terms rs the re-
demptiou of their own notes while they
are conducting a solvent banking busi-
ness. 1t Is only when by the refusal TO
poy suCu uObts tuty btCoiht tuSbiNtuu ouop
the government recognizes again Its de-
mand debt and assumes it for the COM
plste protection OF the holder of the note
and for the benefit Of the creditors OF the
bank by leaving the remaining assets un-
impaired for the settlement Of their just
claims.
"The form OF note thus assumed by tn
hank with the final redemption guarane
tced By the government combines the
strongest Of oil resources for its ultimate
payment.
1.-THE note which IL 10 proposed to issue
under this bill In lieu Of the government
notes Is called tie national reserve notes.
1T IL legal tender mute whose parity
with gold Is assured SO long as the bank
maintain the parity of their own notes
and for whose parity tha government also
is responsible. The country Is chus pro-
vided with an ample legal tender our
reDcy, consisting or oil the notss substi-
tuted for the present legal tender notes.
and of all the gold aud silver coin la cir
cuIation, to the maintenance OF whose
parity this faith OF the government Is
sacrediy plsdGed.
s'.rhe purpose and effect of the proposed
bill, /" says the reLeort, lis to th'ow upon
the national banks the entire burden of
finding gold fer the notes Of tho country.
There Is no doubt Of their ability to do
this is-.~~ is required by Law. The system
proposed BY your committee provides an
easy and adequate method of obtaining
gold for export from the banks without
exposing the country or the Unitsd States
treasury 90 the alarm and d::convulsions
which have attended gold exported urinR
the last uve yaars.