The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-03-10

Be Allowed to Issue Bank Notes in
Increased AmOunt-TRe Purpose to
Establish "a Stable and Responsive
Currency.
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 mem
bers of the committee after confer
ences extending through the last two
months. 1t brings together in one finan-
cial measure a number of propositions
which have been urged separately
heretofore. Mr.. Fowler explains the
purposes of the bill as follows:
ITO transfer from the government
to the banks the responsibility of pro-
tecting the necessary gold reserve and
the burden of furnishing gold for ex-
port, thereby saving our commerce
from the destructive apprehensions
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 currency 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 enterprise and American
capital the privileges and opportunities
of engaging in international banking
under national law and so lay a foun-
dalton upon which to build an Ameri-
can merchant marine; to remove the
last vestige of doubt with regard to
our standard of value.
The measure provides for interna-
tlonal banking, and a division of bank
ing and currency is established, under
a board of control. instead of a sin
gle individual in the persons of the
controller of the currency as hereto
fore. The board will consist of three
members whose term of Office are for
twelve years, so arranged that only
one member will retire ever four years.
Work for National Banks.
If the measure now introduced
should become a law it is confidently
believed that the national banks will
assume the current redemption in gold
coin of one hundred and thirty mill
sideration of the obligat ton assumed
by the national banks they will have
the right during the succeeding five
years, to issue gradually as business
may require an amount of bank notes
equal to so per cent. of their paid-up
and unimpaired capital; provision be-
ing made also for an emergency cir
culation. AS the notes are taken out
for circulation the banks will deposit
1,ooa -. i
of per cent. of the amount of the
notes so issued. The national banks
hereafter will be required to pay in
terest upon the government deposits
at the rate of 1 per cent. pr annum
This per cent. guarantee fund, and
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
redeem.
National Clearing Houses.
1.-THE United States will be divided
into clearing house districts to facili-
tate the current redemption of the
bank notes, so that the amount of notes
outstanding at any time always will
be co-ordained with the amount of
trading to be done. precisely as checks
and drafts reflect the amount of COM
mercial work being carried on.
"By and with the consent of the
board of control, banks may have more
than one place for doing business, be-
ing authorized to establish themselves
in the various cities of the country.
mo bank note of a denomination less
than $40 will be issued, and the Secre-
tary of the Treasury shall not issue
silver certificate of a denomination
greater than S., and thereafter, upon
the presentation to him of 100 silver
dollars or any multiple thereof, and
a demand for their redemption shall ex-
change gold coin for the same