The record-union., 1898-09-16

the subject through the bodrus VI
Trade in the leading cities, Whlcn ap-
pointed delegates to monetary con-
vention to be held at Indianapolis, Inu-
This convention, wherein more tndil
loo cities in twenty-six States were
represented, by delegates embracing
many of the ablest business men in the
country. convened January, IL, 1885,
and was thoroughly non-partisan In
character. Full accounts of it's proceed
fngs have been published, and you are
therefore doubtless more or less famh-
lar with them. Among other thlhSs
the convention authorized, by resolu-
ton, it's Executive Committee = OF
which the Hon. III. H. Hanna II IN
dianapolis is Chairman-in the event
that Congress should fail to pass the
bill providing for the appointment OF
commission, to select from the business
men of the country a similar NUMBER
Of gentlemen of known financial apl-
ity, to convene at Washington city
and serve in that capacity. The COM
mission SO selected assembled August
ODD and concluded. its labors Decem-
Der 1, 1897. 1t made an elaborate re-
port, in which all the questions relat-
ing to our metallic currency, the de-
mand obligations of the Government
and the national banking system were
fully discussed. The result of its Ia
bors has been highly commended by
many members of Congress, as we'll as
the public press, and a bill embodylng
it's recommendations was introduced
into Congress by Representative over
street and referred to the Committee
on Currency and Banking.
In the meantime Mr. Walker, Chair
man of that committee, and Mr.. Fow-
Ter, a member, had each introduced
elaborate bills at the previous session,
and Mr. Gage, Secretary of the Treas
ury, had also formulated, in his annual
report, a plan of currency reform upon
the same lines, in many respects, with
those of that monetary commission.
The Secretary of the Treasury and
leading members of the commission
We're invited before the Congressional
committee to explain in detail the vari-
Gus provisions of the bills embodying
their recommendations, ana We're sub
jeeted to a most rigorous and searching
examination on the part of its Chair
man and other members.
The final result was that the Com
mittee on Currency and Banking ap-
pointed a special subcommittee from
it's own membership, to which were re-
ferred all the bills that had been pre-
sented, with a view to its embodying
in a single bill the best provisions of
each
This subcommittee accordingly re-
ported the bill now pending before the
Committee on Currency and Banking,
entitled: "A bill to provide for
strengthening the public credit, for the
retirement of the demand obligations OF
the United States, and the amendment
of the laws relating to national bank
ing associations" The bill embodies
many of the provisions recommended
by the monetary commission spoken Of
and is doubtless the best considered
measure yet presented to Congress, so
far. at least, as it relates to the ma
tional banking system, respecting
which it differs from all others in
many of its provisions. 1t was accom-
panied by a report, admirably clear
and lucid, giving a synopsis of its pro-
visions and explaining them. Regard
ing it as the most important measure
affecting the banking business of the
country that has yet been presented to
Congress, l cannot do better than to
quote here the subcommittee expla-
nations of its scope and purposes:
THE purpose of this BILL as declared
by its title, is the strengthening of the
public credit, the relief of the United
States Treasury, and the amendment of
the laws relating to national banking.
These objects. we believe, will be best
attained by relieving the Treasury De-
partment of the current redemption of
demand notes, casting that burden
upon the national banks, and permit
ting the banks to provide the elastic
element of the paper currency of the
country.
National banks are required to as
sumo the current redemption of the
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 the legal-ten
notes deposited by the banks with the
Treasury, and these reserve notes are
to be redeemed by the banks out of the
redemption fund, which they are re-
quired to maintain in gold. These re-
serve notes are not treated in any re-
spect as banknotes, because the banks
are not liable for their ultimate re-
demption.
THE basis of National Bank note cir
culation Will eventually be the CONNER
cial assets of the banks. This result
viii be reached, however, only after a
series of years, by a conservative
method. National banks will continue
to be required during one year after toe
passage of this bill to maintain the
same amount of United States bonds as
security for circulation which is re-
CURED by existing law, but they will be
permitted to issue notes to the face
value of these bonds. This bond de-
posit may be reduced by one-f fourth an
nually, beginning one year after the
passage of this Act.
National banks are to be permitted
to issue national currency notes upon
their commercial assets to the amount
of the reserve notes issued to them in
return for deposits of United States
notes. The purpose of this provision
is to induce the conversion of United
States notes into reserve notes, as we'll
as to limit the issues of currency upon
commercial assets.
Treasury notes issued under the Act
of July IA 1890, are to be dealt with
eventually upon the same basis as
United States notes.
"A tax of per cent. is levied upon
national currency notes issued in ex-
cess of GO per cent. of the capital of
any national bank. A tax of per cent.
is levied upon circulation of the same
character in excess of so per cent OF
the capital.