The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-10
NEW BANKING BILL.
Important Measure 10 he introduced
by House Committee ON Currency.

Special TO the indianapolis Journal.
WASHINGTON, March 9.-The Republic
an members Of the House committee on
banking and currency have been working
for some weeks upon a general banking
bill. 1t was finished yesterday. and the
chairman Of the committee. Mr.. Fowler. OF
New Jersey, was instructed 10 introduce IL
in the House az a committee bill 1t viii be
favOrably reported 10 the House at the
next committee meeting.
The purpose OF this bill is 10 reorganize
the existing monetary system: BY national
banks assuming TO redeem currently $780,
100000 of United States notes: by permitting
national banks 10 issue, under proper safe
guards and during a term OF seven years.
asset currency proportioned 10 their capi-
tai: By limiting issues OF silver certificates
to So or less: by increasing the coinage OF
subsidiary coin; by providing for the ex-
change of gold for silver: by permitting
tional banks 20 have places OF business in
any part Of the United States colonies and
foreign countries: by requiring national
banks 10 pay interest at the rate OF per
cent. per annum on all deposits Of public
money.
The bill creates A board Of control. con-
siSting Of three members. who shall have
supervision OF all national banks and dis
charge the duties now vested In the con-
trOller Of the currency. ANY national bank
that shall assume the current redemption
IN gold Of an amount Of United States notes
equal 10 % per cent. OF It's capital maN.Nlth-
out depositing United States bonds. immc-
diately issue an amount OF bank notes
equal 10 10 per cent Of its capital AT the
end of one year II may issue an additional
10 per cent. and on both issues II shall pay
a tax at the rate of one-quarter Of ] per
cent. per annum. When II ceases 10 redeem
United States notes IL shall pay a tax on
he
cent. per annum.
At the end Of two years national banks
may issue circulation equal 10 10 per cent.
of their capital. and they may issue 10 per
cent per annum for a period or fve years
until the total issues equal 60 per cent OF
their capital. the tax on each OF the four
per cent. per annum. In the discretion OF
the board Of control an emergency cir
culatiOn OF 20 per cent. 10 be taxed at the
rate OF per cent. per annum and a further
emergency circulation or % per cent % be
taxed al the rate OF per cent. per annum
may be permitted.
United States notes equal 20 - per cent.
OF their capital shall AZ the same time sur
render TO the United states treasurer an
additional amount Of United States notes
equal 10 10 per cent. Of their capital. which
shall be at once redeemed from the gold
ir the general fund OF the treasury and
shall not be reissued. but shall be can
celed and destroyed. The committee eX-
plain in this connection that - per cent.
OF the present national bank capital IL
SlS0O09Q00. the exact amount OF United
states notes for whose redemption tie banks
would be responsible II every national
bank should assume its share OF such re-
Gemption One-half OF this amount s65 co.
. 600 would represent the United States notes
that the banks would al the same time pre-
sent TO the Treasury Department for re-
demption. This would relieve the treasury
from the burden Of redeming Sis5.o0oo 90 Of
/ United States notes. The remaining $751;
OnO.GGO of United States notes would be
amply covered by the Sl50.Oo0o00 Of gold in
the reserve fund OF the treasury. mas
much as several million Of United States
notes have been lost or destroyed.
ANY national bank that has not assumed
current redemption Of United States notes
may when Sls5 .0ce 90 have been provided
for issue circulation as above described.
hut upon the first - per cent. OF its issues
IL shall be taxed IL per cent. per annum
instead OF the tax Of one-fOurth OF ! per
cent. per annum paid by banks assuming
| United States notes The bank notes not
! based on government bonds are 20 be guar
I anteed By a fund consisting OF United
/ States bonds or gold coin equal 20 per
cent OF all notes outstanding and this
fund l. 10 be used only for the payment
Cf notes of failed banks. The taxes on cir
culation and interest on public deposits
/ are also 10 be added 10 the guaranty fund
| and any excess OF the fund above 10 per
cent. OF all notes issued may be used Is
/ cancel and retire United States notes This
| total amount OF circulating notes OF au
kinds shall not ~ any tins exceed H.