The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-03-14
The Fowler Banking Bill.

While final Judgment cannot be passed
off-hand upon the comprehensive scheme
Of banking reform comprised In the bill
just introduced in Congress by Mr..
FOWLER Of New Jersey, the chairman
OF the Banking and Currency Committee
Of the House, and while all the details
should be thoroughly and critically
investigated, it may be said that the
scheme is the most elaborate and care
fully considered Of the kind that has
yet been presented, and that in a general
way 1t expresses the views Of many OF
those who have given the subject care
full attention and are best fitted to ex-
press an opinion concerning it. The bill
will at least serve as a good base for
popular discussion Of the matter.
Mr.. Fowler seeks to accomplish at
one stroke the gradual retirement Of
the United States notes commonly called
the greenbacks, the substitution and
enlargement Of the currency thus dis
placed by a quantity Of 9 bank asset =
paper money, the maintenance at a parity
with gold Of the standard silver dollars
OF the United States, and the establish
ment OF a branch banking system. The
measure proposes that any national
bank which shall undertake the re-
demption OF an amount OF greenbacks
equal TO 20 per cent. of its capital shall
have the right to issue in varying guam
titles throughout a period of seven years
an amount Of its own notes equal TO it's
capital upon the payment Of a tax to
the Government rising from one-eighth
Of ! per cont. to 2I1 per cent. a year upon
the varying quantities OF the notes in
circulation. The banks must deposit
as a guarantee fund in the Treasury an
amoun of United States bonds or gold
coin equal to S per cent. of the amount
OF + bank asset +" currency issued. In
redeeming the greenbacks the banks
must also furnish 20 the Treasury for
redemption by the Treasury a farther
amount of greenbacks equal Il one-
half of those redeemed by the banks
themselves. II is calculated that, &C.
cording to the present capital of the
national banks, this process would So
cure the redemption of sI95, 900, 900 OF
greenbacks, leaving only $751; 900, 900 OF
legal tender notes to be covered by
the gold reserve. The new bank notes
are 10 be n first lien upon the assets OF
the banks issuing them. There is sho
a provision, designed TO act as n relief
in times Of money stringency, that the
banks may issue notes equivalent &c
20 per cent. Of their capital upon the
payment Of a 5 per cent. tax, and Of &c
per cent. more under a 5 per cent. tax.
The law also authorizes the Secretary
Of the Treasury. in his discretion, TO de-
post all the money OF the United States
ia excess of $50, ZOO, 900 in the nationa
banks upon the security Of United
States bonds and upon the payment OF
interest at the rate of / per cent. A
board Of control is established over the
national banks, assuming the present
functions of the Comptroller Of thu
Currency, and this board is directed &c
divide the GATED States into various
clearinghouse districts, the net ehect
Of which would seem TO be to keer
the circulation Of the several bank,
largely within the territory adjacent tc
them. People would thus come tc
attach a local stability 70 the note issues
The Secretary Of the Treasury is ordered
10 exchange gold for silver dollars when.
ever presented TO him in sums Of 500 O,
any multiple thereof, and the Secretary
is directed to employ any part of III,
reserve fund of the gold coin established
in the Treasury under the act Of March
1900, for Shis purpose.
The dfcf objections which will b,