The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1898-03-24
Republican Subcommittee Of the
House Banking anu Currency
Committee
Reports a Bill for Strengthening
Public Credit and Other
Purposes.
Banks Required to Assume the
Function Of Providing Gold
for Redemption.

WASHINGTON. March 2A-The report
OF the Republican subcommittee OF the
house committee on banking and cur
rency has been laid before the full Re-
publican membership Of the committee.
This subcommittee, which sas ap-
pointed month ago to report a general
banking and currency measure, con-
sists of McCleary Of Minnesota, chair
man; Prince Of Illinois, and Mitchell Of
New York. The bill they have re-
ported is entitled "a bill to provide for
strengthening the public credit, tor the
relief Of the United States treasury.
and for the amendment of the laws re-
lating to national banking associa.
tions"
The method of dealing with the
greenbacks is not by direct retirement,
but by the substitution Of legal ten
der note. which the banks are required
to assume, and for the redemption Of
which they are required to find the
gold, so long as they are conducting
solvent business. The principal pro-
visions of the bill are as follows:
l. A division of issue and redemp-
ton is esta blished in the treasury for
which the secretary of the treasury is
authorized to set aside the general cash
balances in exccss OF $50, 900, 900. This
excess on March II, 1898, was SITS.
139, $50. United States notes received
by this division for redemp. III in gold
are to be cancelled and retired in pro-
portion as certain substitute currency is
issued. No note redeemed in gold is to
be again paid out, except under excep-
tional conditions.
g. National banks are required to
assume the current redemption Of
United States demand notes IN order TO
obtain circulation based upon their
commercial assets. A new class of
notes. called national reserve notes is
to be issued in lieu OF legal
tender notes deposited by the
banks with the treasury and
these reserve notes are to be redeemed
upon demand by the banks out OF the
redemption fund they are required
to maintain in gold. These reserve
notes are not treated in any respect as
bank notes, because the banks are not
liable for their ultimate redemption.
B. The basis of national bank note
circulation will be the commercial as
sets of banks, but this will be reached
only after a series of years.
4. National banks are to be permit
ted to issue currency notes upon their
commercial assets to the amount Of the
reserve notes issued to them Ill return
for deposits of United States noles.
8. Treasury notes issued under the
act of July IA, 1890, are to be dealt with
eventually on the same basis as United
States notes.
6. A tax of 2 per cent is levied upon
CURRENCY notes issued in excess OF 81
per cent of the capital of any national
bank. and Of 8 per cent when in excess
Of 80 per cent.
Z. The national currency notes based
upon commercial assets are to be SO.
cured by bank nose guarantee fund.
made up by the contribution III gold
coin, of s per cent OF the entire circu.
lation of the bank, aud provision Is
made for replenishment Of this fund
within certain limits.
8. The national reserve notes will
continue to be legal tender until re-
ceived into the treasury from failed
and liquidating banks, when liability
for them will be assumed by the gov.
eminent, and they Will be redeemed
and cancelled.
.. Standard silver dollars are to be-
redeemable in gold, but silver certifi-
Gates are redeemable only in standard
silver dollars. The parity OF silver
with gold is secured by gold redemp.
ton fund.
TO-. Silver certificates are hereafter
to be issued only in denominations OF
81, s. and s.. Legal tender notes, re.
serve notes and currency are not to be
issued in denominations below $40.
IL. National banks are required to
Day tax of one-eighth Of one per cent,
sem,-annually on their capital. surplus
and undivided profits.
IL. National banks are permitted to
esta blish branches under regulations to
be prescribed by the secretary of the