The Providence news. (Providence [R.I.]) 1891-1906, 1898-03-23
BANKING AND
CURRENCY.
Report OF Republican Sub
Committee.
AN IMPORTANT DOCUMENT
The Proper Method of Dealing With
The Greenbacks.
NATIONAL BANK REQUIREMENTS

Washington, March 23.--The report of
the Republican sub-commi mittee of the
House committee on banking and cur
rs6sy was laid today before tha full Re-
publican membership OF the committee.
This subcommittee, which was appoint
ed q month ago to report q general bank
ing and currency measure, consists of
AcClsarey Of Minnasota, chairman, MIR.
Trance of Illinois Ind Mitchell of New
Y ork, The bill they have reported is en-
titledF'n bill to Drovide for the relief of
the United States treasury and for the
amendment or the laws relating to ma
tional ban king Associations. The
method Of dealing with the greenbacks Is
not By direct retirehent but by tho sub
stitution Of legal tender note, which
the banks are required to assume, and
for the redemptioniof which they are re-
quirsd TO find the gold 80 long ns they
are conducting solvent business. The
principal provisiona of the bill are as fol-
lows:
IA divisionsof issue and redemption is
established In the treasury, for which the
secretary OF the treasury Is authorized to
set aside the general cash balance in ex
cess of $50, GOO, 600. This excess ON March
II. 1898. was $l76. 15a, 633. United States
notes received BY this division for re-
demption In gold are to be cancelled and
returned in proportion as certain substi-
tute currency Is issued. No note re-
deemed IN gold Is TO be again paid out
except under exceptional conditions
2-Natioral hanks are required 10 as
sume 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 Dotes, is 10 be issued in
lieu of lsaal tender notes deposited by the
banks with the treasury, and these re-
serrs notes are TO be redeemed upon de :.
maud by tt @ hanks out of tho redemption
fund, which they are required TO main
tain In gold. Tbess ressrve notes arc not
treated In any respect as hank notos, be-
cause tie banks are not liable for their
ultimats re .emption.
8--Il Q basis Ct national bank note cir
culatlon will eventually be- the CONNER
cial nss,ts Of the bank. This result will
be reached, however, only after series
OF years National banks will continue
to bs required during one year after the
passage Of this act to maintain the mini
mum smount Of United States bonds as
security for circulation which Is requir vi
by existing law, but they will be permit
ted to issue notes to the face value of
these bonds. This bond deposit may be
reduced oue-fourth annually, beginning
one rear after toe passage Of tho sot.
4-National banks are to be permitted
to issue current notes upon their CONNER
cal assets to the amount of the reserve
notee Issued 20 them in return for ospos-
its Of United States notes. The purpose
Of this provision 10 TO compel tho conver-
sion OF United States notes into reserve
notes. as we'll as to limit the issue of cur
rsncy upon CONNER cinl assets.
5-Said treusurppnotes issued under the
act Of July 4, $780, are to te dealt with
eventually upon the Same basis as United
States.
s--A tax Of Q rer cent Is levied upon
currency notss issued In excess Of 90 per
cent of the capital CT any national bank.
tion Of the 3 tme character In excess Of 80
per cent Of tho capital.
7-Tbe national currency notes based
upon commercial assets are TO be secured
by q bank note guaranty fund made up
by tho contribution In gold coin OF 8 per
cent CT the entire circulation OF tho
bank. This fund NAV b. replenished by
calls moon the bank. IL rs1ucod bT the re-
demption Of tue notes of the failed bnnks,
bat no tank shall be required to pay
more than one per osnt In addition TO it's
original deposits or per cent In any one
year. 1ha notes ara also secured ny n
first lien upon the bonds Of deposit as ~
curity and upon all the other asssts OF
the bank.
s-Tbe rationsi reserve notes will con-
tinus 20 be legal tender until received
into the treasury from failsd and lqui.
dating banks, wnen the liability for them
will be assumed by the government and
they will be redeemed and cancelled.