The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1898-05-20

Below is a synopsis OF the currency
reform bill reported to the house on
May IL from the banking and currency
committee. The bill "for strengthen
ing the public credit, for the relief OF
the United States treasury, and for
the amendment of the laws relating TO
national banking associations" is
framed to accomplish these results,
without the issue of interest bearing
bonds and without cost to the treas
ury of the United States. The protec-
ton OF the treasury from demands for
gold and from the necessity for issu-
ing bonds is accomplished by imposing
upon the national banks the current
redemption of the government notes.
The amendment of the national bank
ing laws is intended to afford a test,
in a conservative and limited manner
of the system of basing note issues
upon the commercial business of the
country, with the ultimate purpose of
affording a sufficient supply of cur
rency in every part of the country at
all seasons of the year, extending credit
accommodations, and thereby reducing
the rate of interest to borrowers.
WORK OF TREASURY DIVIDED.
The bill divides the operations of the
treasury. The fiscal operations of col
lecting revenues and dsbursing them
for government expenditures are left
as at present, but a new division is
created, to be known as the division
of issue and redemption. This divis-
ion is to be under the charge of three
comptrollers Of the currency, who take
the place of the present comptroller
All matters relating to the issue, re-
dempton, and exchange of currency,
whether coin, government notes, or
bank notes, are entrusted to the divis-
ion of issue and redemption. The Sec
retary OF the treasury is authorized
to transfer to 1t all funds in excess
of a cash balance of $50, 600, 900 and all
gold and silver coin and bullion now
held in the treasury for the purpose
Of redeemng United States notes
treasury notes, and certificates. The
secretary Of the treasury is also au-
thorized to transfer to this division
from time to time such surplus reVe-
nues as the treasury may contain, and
to issue shOrt-term treasury certif-
Gates, if necessary, for the sole pur-
pose Of replenishing the reserve.
The division of issue and redemp-
tion is required to redeem United
States notes and treasury notes i'm gold,
TO exchange gold coin for silver dollars
and silver dollars for gold coin or other
lawful money; to redeem silver certifl-
Gates in silver dollars, and to make
other ordinary exchanges of currency
United States notes redeemed in gold
are from time to time to be cancelled.
The division must maintain gold re-
serve of 20 per cent. of the outstand-
ing United States notes and treasury
notes and per cent. of the silver dol
lars which have been coined.
EXCHANGE OF GREENBACKS.
The present outstanding issues of
United States notes known as green
backs Will cease to be a burden upon
the treasury for redemption in gold, so
far as they are exchanged by national
banks FOR national reserve notes. Ma
tlonal reserve notes are new form of
currency provided by the bill in place
or the existing greenbacks. They are
legal tender and are intended for cir
culation as currency or for use in the
reserves of the banks in exactly the
=
backs. National reserve notes are to
be issued TO any national bank to
any amount not exceeding it's paid-up
capital, upon its surrender to the treas
ury Of an equal amount of green
backs. The United States notes thus
received are cancelled and destroyed.
The banks taking reserve notes are
required to contribute to the current
redemption fund in the treasury five
per cent. of the amount of their reserve
notes in gold coin and to replenish this
reserve whenever it is reduced by the
redemption of the reserve notes.
The money in circulation is not re-
duced by any Of the preceding provi-
sions. National reserve notes take the
place of greenbacks, for which they
are exchanged, and gold coin takes
the place of greenbacks which are di-
rectly redeemed.
Existing national banks are required
10 take reserve notes, to the amount
or 20 per cent. of their capital but two
privileges are offered the banks in com
pensation for their assumption of the
current redemption of the notes One
or these IS the privilege of issuing
currency notes upon general assets.
The second privilege is partial remis-
sion of the tax of one-fourth of one
per cent. per year levied by the bill
upon the capital, surplus and undivid-
ed Profits Of each bank. The remis-
sion thus allowed is at the rate of one
half OF one per cent. per year of the
amount of reserve notes issued to the
bank.
National reserve notes may be recall
ed from the banks to which they have
been issued by the secretary of the
treasury in equitable proportions and
distributed to new national banks.
which are required to pay for them in
sold coin after the United States notes
cease to be available. The withdrawal
OF reserve notes does not reduce the
limit of currency based upon CONNER
cial assets.
BANK-NOTE CURRENCY.
National banks having charters nm
der the old law may continue to is
sue currency as at present, based upon
United States bonds. The minimum
amount of United States bonds reauir-
ed upon the passage of the bill Is the
same az under existing laws per
cent. of the capital, but not exceeding
$50, ,OO0-but banks may issue notes upon
all their bond deposits to the par value
of the bonds instead of 80 per cent, as
at present.
Beginning four years after the pass
age Of the act any bank may with
draw the bonds deposited to secure
circulation at the rate of 25 Der cent