The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-03-24
NEH CURRENCY BILL
House Subcommittee Reports
to the Full Committee
NO DIRECT RETIREMENT
Of Greenbacks, a Substitute
Being Provided.
NO DIRECT RETIREMENT

Washington, March 23.-The report OF
the Republican subcommittee of the
house committee on banking and currency
was laid before the full Republican mem
bership Of the committee. This sub-com-
mittee which was appointed a month ago
70 report a general banking and currency
measure, consists Of McCleary OF Mime
sofa. chairman; Prince of Illinois and
Mitchell Of New York. The bill they have
reported is entitled, "A bill to provide
for strengthening the public credit, for the
relief Of the United States treasury, and
for the amendment of the laws relating
TO national banking associations"
The method OF dealing with the green
backs is not by direct retirement. but by
the substitution Of legal tender note
which the banks are required to assume
and for the redemption of which they are
required to find the gold 50 long as they
are conducting a solvent business. The
principal provisions OF the bill are as fol-
lows:
IA division Of issue and REDEMPTION
is established in the treasury, for which
the secretary of the treasury is author
lied 10 set aside the general cash bal
ance in excess of $4,000 900. This excess
on March Il, 1898, was SIG $50. United
States notes received by this division for
redemption in gold are to be cancelled and
retired in proportion as certain substitute
* NJ
gold is to be again paid out except under
exceptional conditions.
2.-National banks are required TO as
sumo the current redemption of United
States demand notes in order to obtain
circulation based upon their commercial
assets. A new class of notes, called ma
tIonal reserve notes is 10 be issued in lieu
Of legal tender notes deposited by the
banks with the treasury and these re-
serve notes are to be redeemed upon de-
mand by the banks out Of the redemption
fund which they are required to main
tain in gold. These reserve notes are not
treated in any respect as bank notes, be-
cause the banks are not liable for their
ultimate redemption.
3.-The basis Of national bank note cir
the banks but this will be reached only
after series of years.
4-National banks are TO be permitted
TO issue currency notes upon their com
mercial assets TO the amount Of the re-
serve notes issued 10 them in return for
deposits Of United States notes.
5-Treasury notes issued under the act
Of July a. 1890. aer 10 be dealt with
eventually on the same basis as United
States
6-A tax Of per cent is levied upon
currency notes issued in excess Of 60 per
cent OF the capital OF any national bank
and of s per cent when in excess Of so
per cent.
The national currency notes based
upon commercial assets are 10 be secured
by a bank note guaranty fund made up
by the contribution Of gold coin of per
cent of the entire circulation Of the bank
and provision is made 70 rreplenishment
Of this fund within certain limits.
8-The national reserve notes will con-
tinue to be legal tender until received
into the treasury from failed and liquidat-
ing banks. when liability for them Will be
assumed by the government and they will
be redeemed and cancelled.
9.-Standard silver dollars are TO be re-
deemable in gold. but silver certificates
are redeemable only in standard silver
dollars. The parity of silver with gold
IS secured by a gold redemption fund.
1o.-Silver certificates are hereafter 10
be issued only in denomina lions of 81. 81
and s.. Legal tender notes. reserve notes
Il ha ia, I
nominations below SO.
u.-Natonal banks are required to pay
a tax Of Is of per cent semi-annually on
their capital surplus and undivided prof
it's
B.-Nationsl banks are permitted 70 es-
tablish branches under regulations to he
prescribed by the secretary Of the treas
ury.
The committee say. in explanation Of
the provision regarding the assumption Of
legal tender notes by the banks. that they
have endeavored 20 adopt a system which
would be subject 70 none of the criticism
made against the issue Of inrerest-bear-
ing bonds or the taxation Of the people
for the payment Of this demand debt.
They declare:
ne system duoptcd = SHSu a. 90 con-
tinue to govern all porits of the loan
without any Of the disadvantages Of its
character as a demand obligation. The
proposed bill imposes upon the banks the
whole burden Of carrying and sustaining
this debt
There is not profit or return 10 the
banks thus carrying the nations debt and
they are required by the bill 10 assume the
entire obligation as compensation for the
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