Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-11-29
CURRENCY BILL APPROVED
Controller Dawes Wants Spec dy Actionon
That Financial Measure.
Minor Objections Should Not stand in
the Way of Legislation to Pro-
feet Gold Standard.

Mr.. Charles G. Dawes, the controller OF
| the currency. today expressed his opinion
of the republican caucus committees tinan-
cial bill to a Star representative:
In my Judgment the House caucus bill
expresses a financial policy which well ac-
cords with conservative public and financial
opinion" he said. 1T should be passed by
the House. Whatever mirror notifications
or changes may be desirable, the present
is not the time or place for them. With
this bill a law. the gold standard will be
protected from deficient public revenues
and the foundation of our currency system
will be made solid
'In making 1t the duty of the Secretary
of the Treasury to protect the gold reserve
in accordance with the Presidents recon-
mendatiOn, first, by the segregation of a
portion of the present gold holdings from
which, when greenbackS are once redeemed
they shall not thereafter be paid out eX-
cept for gold, and. second, by the issue of
bonds, if necessary. the bill would place
the safety of the gold standard beyond the
power Of injury by any future Secretary of
the Treasury, whose individual views may
be hostile to the gold standard, notwith-
standing the voice of the people had de-
clared in favor of it,
Provisions to National Banks.
'"The provisions as to national banks are
good. They provide for greater distribu
ton of banking facilities in the United
States by authorizing the establishment of
banks with $4,000 capital in towns of
less than 1000 population, whereas at the
present time no national bank can be or
ganized with a capital of less than $4,000.
In regard to bank note circulation the
bill takes off the tax upon circulation and
cOmpenSates the government for this loss
of revenue by putting a tax upon the cap
ital. surplus and undivided profits of the
bank of such an amount as will realize to
the government an equal revenue. This
increases the profits on circulation. but
does not lessen the present tax paid by the
banks to the government. The bill also
provides for circulation to the par of the
bonds instead of to 90 per cent of the par
of the bonds, as at present.
Bill Could BE Improved
Personally, I think the bill could be
much improved by very slight alteration
in the method of taxation proposed. In
other words. if the bill were simply to
transfer the present 1 per cent tax on 30
per cent circulation to the franchise of
the bank. and tax the banks > or 3 per cent
on the IL per cent extra circulation allowed
them during the time issued the banks
would have practically the same induce
ment to increase their general circulation
that is offered, and, in addition, there
would be provided an emergency circula-
ton the lack of which has formed the
basis of the argument for bank note cur
rcncy reform in this country for many
years and the need of which at certain
periods of the year when crops are to be
moved and in times Of financial panic is
unquestiOued.
As l said before. however. in my judg
ment the time 20 secure this OF any other
modification in the bill is not at present,
and L hope that the House will speedily
pass the bill.
The Senate finance committee is yet to
he heard from. and the joint action on the
part of the Senate and House which is
necessary before the final measure Is dp-
proved will, of course. provide opportunity
for all suggestions to be considered. But il
ia important at the present time that all
reform in the House should stand behind
the caucus measure.