The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-13
Aimed to Prevent Raids on the Gold
Revenue and to Shift RESPONSE
bility to National Banks.
BOARD OF CONTROL PROPOSED
TO TAKE THE PLACE OF THE PRES
ENT CURRENCY CONTROLLER.
Clearing House Districts and Branch
Banks Also PrOpOsed-The
Report in Detail.
snecial 10 the 1ndianapolls journal.

Special 10 the Indianapolis Journal.
WASHINGTON, March R-Representa-
tive Fowler chairman of the banking and
currency committee. to-day made a lengthy
report on the bill introduced last Monday.
This is some times alluded TO the In
diana currency bill, on account of the
prominent part which Indiana has taken in
the framing of the measure. Representative
Overstreet and III. II. Hanna, chairman of
the monetary commission, have made the
measure acceptable and to them is due
largely the fact that the bill has been so
adjusted and presented that il meets the
approval Of the Republicans Of all opinions
of both houses Among other things Mr..
Fowler in his report says:
ITO transfer from the government to the
banks. where it belongs. the responsibility
o. protecting 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 on the gold in the treasury which
can now only be replenished by a tax i'm
posed on the people through the sale of
bonds.
ITO provide currency always responsive
and adequate 10 the demands of trade
everywhere. and to equalize and lower the
United States.
ITO secure for American enterprise and
American capital the privileges and oppor-
tupities of engaging in international bank
Ing under national law. and so lay a safe and
sure foundation on which TO build an
American merchant marine.
TO remove the last vestige of doubt
with regard TO our standard of value. not
only because this is essential 10 our do
mestic commerce but because an unequivo-
cal standard and a steady low rate of in
terest are absolutely necessary before we
can expect that our commercial center will
become the exchange market of the whole
world. as may then confidently hope.
IMPORTANT CHANGE PROPOSED.
Since the measure provides for interna-
tionsI banking, and as the assets of the ma
tional banks now aggregate more than So
900 600, 900 and inasmuch as business interests
abhor nothing much as uncertainty or
sudden changes. a division OF banking and
currency has been established and the su-
pervisiOn has been committed to a board
of control instead of an individual in the
person OF the controller of the currency as
heretofore. The board will consist of three
members, whose terms of office for
twelve years, and so arranged that only
one member 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 i'm gold coin of 1S00O0.OO0 of
United States notes In this event the gov
ernment Is asked TO redeem one-half that
amount. or 65000.Oo0. exchanging gold coin
for the same. These amounts taken to-
gether make a total OF S195, 100000. which
would leave a balance of United States
notes outstanding of 15l,OO.O00. an amount
that would be much more than covered
by the l50O00.Oo0 of gold coin now in the re-
serve fund. IT is we'll known that several
millions OF these United States notes have
been lost or destroyed and will never be
presented for payment.
I'm consideration of the obligation as
sumed by the national banks in currently
Tedeeming the 130.0O0OG0 OF United States
notes in gold coin they will have the right
during the succeeding five years TO issue
gradually. business may require an
amount of bank notes equal to 90 per cent
of their paid up and unimpaired cap
ital. provision being also made for an
emergency circulation. As the notes
are taken out for circulation the banks will
deposit with the government guaranty
fund OF per cent. Of the amount of the
notes issued The national banks will
hereafter be required To pay interest upon
the government deposits at the rate of /
per cent. per annum.
TO PROTECT BANK NOTES.
This per cent. guaranty fund and the
tax upon the bank notes will be used to pro
tect the hank notes. and the excess of s1ch
taxes with the interest on the government
deposits will be used to pay off the United
States notes which the bank assumes to
currently redeem; and il is confidently as
serted that the whole l9OOO0cO0 of United
States notes which the banks have as
sumed 10 currently redeem will be paid off
IN thirty years out OF the taxes collected
upon circulation and interest paid by the
banks upon government deposits
The United States will be divided into
clearing house districts TO facilitate the cur
rent redemption of the bank notes so that
the amount OF notes outstanding at any
tire will always be co-ord.nated 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 than one
place for doing business being authorized
10 establish themselves in the various cities
OF the country, thereby giving TO all OF our
people the same low rates OF interest which
are now Obtainable only IN great finan-
cial centers, and also 10 go 70 our new
possessions and any foreign country. with
the view OF extending our trade and con-
trolling the exchange upon our own foreign
commerce at least which Is now annually
approaching the s.. 800 10000 mark.
mo bank note OF denomination less
than $40 will be issued, and the secretary
Of the treasury shall not issue a silver
certificate OF denomination greater than
g.. and, thereafter, upon the presentation
10 him OF 100 silver dollars or any multiple
thereof and a demand for their redemption
shall exchange gold coin for the same.
Thus our silver dollars, as we'll as our
United States notes. VIII be made good
as gold and no chance or rear or repudia-
t0n VIII lGrk anywhere In our monetary
system.
when the banking interests OF the
United States have adjusted themselves
along the lines OF this measure our COM
mercial centers viii become the clearing
house OF the commercial world.
The average interest rates viii be much
lowered eoualized and steadied. a condition