The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1898-03-25
THE CURRENCY QUESTION
Synopsis of the Bill Prepared by Sub Com
mittee Of the House Committee on Bank
ing aud CURRENCY.

Washington, March 23.-The house COM
mittee on banking and currency today
brought up the proposed general curren-
cy legislation for this session. The re-
port of the subcommittee appointed to
draft the general measure was made to
the full committee by Representative
McCleary, of Minnesota. 1t was read in
sections and led to much discussion.
The subcommittee took as their basis
the four bills introduced at this session.
known as the monetary commission, the
Gage, the Walker and the Fowler bills,
and considered the features of those
measures, but did not confne themselves
to them. The bill is the result of about
SIX weeks close conference of the sub
committee who met most of the time at
the private residence of a member.
The bill 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 Re-
lating to National Banking Associa-
TONS"
The method of dealing with the green
backs is not by direct retirement, but
by the substitution of a legal tender 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 a solvent business. The
principal provisions of the bill are as
follows:
l. A division of issue and redemption is
established in the treasury, for which
the secretary of the treasury is author
lied to set aside the general cash bal
ances in excess of $50, 900, 900. This excess
on March II, 1898, was SIG, 139, 532. United
states notes received by this division for
redemption in gold are to be Cancelled
and retired in proportion as certain SUBJ
stitute currency is issued. No note re-
deemed in 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
tlonal reserve notes, is to 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 redemp-
ton fund which they are required to
maintain in gold.
8. The basis of national bank note cir
c%ulation will eventually be the CONNER
cial assets of the banks, but this will be
reached only after a series of years.
4. National banks are to be permitted
to issue currency notes to them in re-
turn for deposits Of United States notes.
5. Treasury notes issued under the act
Of July IA. 1890. are to be dealt with
eventually upon the same basis as United
States notes.
6. A tax of 2 per cent is levied upon
currency notes issued in excess of 90 per
cent. of the capital of any national bank:
of s per cent. when in excess of so per
cent.
Z. The national currency notes based
upon commercial assets are to be secured
by a bank note guaranty fund, made up
by the contribution in gold coin of 5 per
cent. of the entire circulation of the
bank, and provision is made for replen-
ishment of this fund within certain
limits.
s. The national reserve notes will con-
tinue to be legal tender until received
into the treasury from failed and liqui-
dating banks vhenl 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.
10. Silver certificates are hereafter to be
issued only in denominations of 81, 81
and s.. Legal tender notes, reserve notes,
nominations below SO.