The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1902-03-10
NEW FINANCIAL BILL
Measure to Secure q More
Stable System.
BANKS TO PROTECT COLD RESERVE.
Thus Shifting This Responsibility
From the Treasury and Pres
venting Commercial In.
certOInty.

sSHt"s"hys
! WASHINGTON, March 10. - Chair
man Fowler of the house committee on
banking and currency today introduced
an important financial measure framed
| by the Republican members of the
committee after conferences extending
through the iiis: two months. 1t brings
together into one financial measure a
number Of PROPOSITIONS which have
been urged separately heretofore.
Mr. Fowler explains the purposes Of
III" bill as folIoSs:
"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.
thereby saving our commerce from the
destructive apprelcnsions growing out
of raids upon the gold in the treasury
which can now only be rcplenishcu by
Il tax imposed upon the people through
the sale of bonds; to provide Il curren-
ry always responsive and adequate to
the demands of trade everywhere and
to elualize and lower the average rate
of interest in all parts of the United
States: to secure for American enter
prise and American capital the privi-
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 ycStige OF
doubt with regard to our standard Of
value.
"Thc measure provides for intcrna-
ti0nal banking, and Il division of bank
ing and currency is established under a
board of control instead of a single in
dNidual in the person of the comptrol-
Ter OF the cuErency, 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 a law. ii is confidently
believed that the national banks will
assume the current redemption in gold
coin of Sl30,00O,OuO of United States
notes. In consideration of the Oblga.
ton assumed by the national banks
they will have the right during the sue.
ceeding five years to issue gradually,
as business may require, an amount Of |
bank notes equal to 90 per cent of their |
paid up and unimpaired capital. pyOvi- |
sion being made also for an emergency |
circulation. As the notes are taken out |
for circulation the banks will deposit |
with the government a guarantee fund
of . per cent of the amount of the
notes so issued. The national banks
hereafter will be required to pay inter-
est upon the government deposits at
the rate of per cent per annlln.
This per cent guarantee fund
and the tax upon the bank notes will
he used to protect the bank notes. and
the excess of such taxes with the inter
est on the government deposits, will be
used to pay off the United States notes
which the banks assume to currently
redeem. 1t is asserted that the whole
$l30.W0,000 Of United States notes
which the banks have assumed to cur
rently redeem will be paid off in thirty
years out Of the taxes collected upon
and interest paid by the
banks upon government deposits.
The United States will be divided
into clearing house districts to facili-
late the current redemption of the bank
notes, 50 that the amount of notes out
standing at any time always will be
:o-Ordinatel with the amount of trad
ing TO be done, precisely as checks and
traits reflect tie 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. he.
ng authorized 10 establish themselves
n the various cities of the country.
NO bank note Of Il denomination less
han $40 will b" issued and HE secre-
AIRY OF the treasury shall not issue a
liver rcrtiiicat" Of Il denomination
,reHtcr than 81, and thereafter upon
he presentation to him of LOO silver
iollafs or any multiple thereof and a
|cmand for their redemption he shall
Xchangc gold coin for the same"
,u,l..