The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1902-03-14
TO PUT BURDEN
ON The BANKS
New Financial Measure to Be
Proposed by Chairman
Fowler.
RELIEVES GOVERNMENT
Maintenance OF the Gold Reeerva
and Task OF Furnishing Gold
fer Export Devolve on
National Banks.
RELIEVES GOVERNMENT

Washington, March 10.-Chairmal.
towler Of the house committee on
banking and currency, today will in
reduce an important financial meas
ure framed by the republican men,
pers OF the committee after confer
ences extending through the last two
months. 1t brings together into one
financial measure a number of propo-
sitionS which have been urged separ-
ately heretofore.
Mr.. Fowler explains the purposes Of
the bill as follows:
ITO transfer from the government to
the banks the responsibility Of protect
ing the necessary gold reserve and
the burden Of furnishing gold for ex-
port, thereby saving our m
from the destructive apprehenSions
growing out Of raids upon the gold
IN the treasury, which can now only be
replenlshed by a tax imposed upon the
people through the sale Of bonds; to
roVlde a currency always responsive
and equal 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 capital the privilege and OPP
portunities for engaging in interna-
tiona banking und2r national law, and
SO lay a foundation upon which to
build an American merchant marine;
to remove the last vestige of doubt
with regard to our standard of value.
The measure provides for interna-
tional banking and a division OF bank
ing and currency is established under a
board of control, instead of a single in
dividual in the person of the controller
Of the currency, as heretofore. h
board will consist of three members,
whose terms of Office are for twelve
years, so arranged that only one men,
Der will secede every four years.
IF the measure now introduced
should become a law, it is Confidently
predicted that the national banks Will
assume the currency redemption in
gold coin of $3.50, 600, 600 of the United
States notes. In consideration of the
obligation assumed by the national
banks, they will have the right during
the succeeding five years to issue
gradually, as business may require,
amounts of bank notes to equal 60 per
centum of their paid-up and unin-
paired capital, provision being made
also for an emergency circulation. AS
the notes are taken out of circulation,
the banks will deposit with the govern
ment "A guarantee fund Of 5 per cent Of
the amount of the notes so issued. n
national banks hereafter will be re-
CURED to pay interest upon the gov
nlne deposits at the rate of l per
cent per annun1.
This 5 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 assumed to current
~ redeem. 1t Is asserted hal the
whole $3.50, 900, 600 of United States
notes, which the banks have assumed
to currently redeem will be paid off in
upon circulation and interest paid by
the banks upon government deposits.
THE United States will be divided
into clearing house districts to facili-
tate the currency, redemption of the
bank notes, SO that the mount Of
notes outstanding at any time always
will be co-ordinated with the amount
of trading to be done, precisely as
checks and drafts reflect the amount
Of commercial work being carried on.
by and with the consent Of the
board of control, banks may have more
thai one place for doing business, be-
ing authorized to establish them
selves in the various cities of the
country.
mo bank note of a denomination less
thar SO will be issued. and the secre-
tary OF the treasury shall not issue a
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"
Flo.