The daily morning journal and courier., 1902-03-10
A NEW FINANCIAL MEASURE
IMPORTANT BILL 40 BE INTRO
 DUOED IN THE HOUSE.

1 Drafted by Republican Members of the
 Banking and Currency Committee
 Transfer of Responsibility of Pro-
 tecting Gold Reserve-Lower Rate of 1 Interest Aimed At-Country to be
 Divided Into Clearing House Districts. Washington, March 9.-Chairman Fowler of the house committee on banking and currency, tomorrow will introduce an important financial meas ure framed by the republican members of the committee after conferences eX-
 tending through the last two months
 It brings together into one financial
 measure a number of propositions which
 have been urged separately heretofore.
 Mir. Fowler explains the purpose of the
 bill as follows:
 "The purposes of the bill are: To
 transfer from the government to the banks the responsibility of protecting the necessary gold reserve and the bur den of furnishing gold for export, there by saving our commerce from the de-, structve approximations growing out of raids upon the gold in the treasury. which can now only be replenished by a tax imposed upon the people through the sale of bonds; to provide curren- cy always responsive and adequate to the demands of trade everywhere, and to equalize and lower the average rate of interest in all parts of the United States; to secure for American enter prise and American capital the privf- leges and opportunities of engaging in international banking under national law and so lay foundation upon which to build an American merchant marine; to remove the last vestiCe of doubt with regard to our standard of value.
 "The measure provides for interna- tional banking, and division of bank ing and currency is established under board of control instead of a single in- dividual in the person of the comptrol- Ter of the currency, as heretofore. The board will consist of three members. whose terms of office are for twelve years so arranged that only one mem Der will retire every four years.
 If the measure now introduced should become law it is confidently believed that the national banks will assume the current redemption in gold coin of the hundred and thirty millions of United States notes. In considera- ton of the obligation assumed by the national banks they will have the right during the succeeding five years to is sue gradually, as business may require, an amount of bank notes equal to sixty per centum of their paid-up and unim- paired capital provision being made also for an emergency circulation. As the notes are taken out for circulation the banks will deposit with the govern ment a guarantee fund of ! per cefItum of the amount of the notes so issued. The national banks hereafter will be re- quired to pay interest upon the govern ment deposits at the rate of per cen tum per annum.
 This 5 per centum guarantee fund of the tax upon the bank notes will be used to protect the bank notes, and the excess of such taxes, with the interest on the government deposits. will be used to pay off the United States notes which the banks assume to currently It asserted that the whole one hundred and thirty millions of | United States notes, which the banks | have assumed to currently redeem, | would be paid off in thirty years out of | the taxes collected upon circulation and | interest paid by the banks upon govern ment deposits.
 "The United States will be divided | nto clearing house districts to facili- ate the current redemption of the bank notes, so that the amount of notes out standing at any time always will be CO., lrdnated with the amount of trading Q be done, precisely as checks and irafts reflect the amount of commer- 'ial work being carried on.
 By and with the consent of the board of control banks may have more han one place for doing business, be- ng authorized to establish themselves II the various cities of the country.
 No bank note of denomination less han ten dollars will be issued, and the ecretary of the treasury shall not is- ue a silver certificate of denomina- ion greater than five dollars and hereafter upon the presentation to i'm of one hundred silver dollars, or ny multiple thereof and a demand for heir redemption, shall exchange gold
 4