New-York tribune., 1902-03-10
A NEW BANKING BILL.
PLAN TO RELIEVE DEMANDS
OF GROWING TRADE.
PROVISION FOR PARITY OF METALS
A BANKING TAX-ISSUANCE
OF NOTES.
OF NOTES.
IBY TELEGRAPH TO THE rRIBUHE.l


Yesterday. and the chairman of the committee
Mr.. Fowler. Of New-Jersey, was instructed TO
introduce il in the House as q committee bill
II will be favOrahly reported TO the House at
the next committee meeting. The purpose Of
this bill is TO reorganize the existing monetary
system as follows:
FIRSTLY national banks assuming to re-
deem currently S13O.0O0,OOO of United States
notes.
issue. under proper safeGunrds and during IA
term of seven years, asset currency prOpOr-
tioned a their capital.
Thirdly limiting issues of silver certiH-
cates - less.
FOurih-By increasing the coinage of sub
sidiHry coins.
FIfth-By providing for the exchange of
gold for silver.
SiKth-By permitting national banks TO
have places of business in any pnrt of the
United States, colonies and foreign countries.
seEenth-By requiring national banks
pay interest at the rate of 1 per cent "A
year on all deposits of public money.
The bill creates a board of control consisting
Of three members, who shall have supervision
Of all national banks and discharge the duties
now vested in the Controller Of the Currency.
Any national bank that shall assume the cur
rent redemption III gold of amount Of United
States notes equal 10 20 per cent Of its capital
may. without depositng United States bonds.
equal to 10 per cent of its capital. At the end
OF one year It may issue an additional 10 per
cent, and on both issues II shall pay a tax at
the rate OF one-quarter Of per cent a year.
When il ceases TO redeem United States notes
# shall pay a tax on the foregoing issues at the
rate OF IA per cent gear.
THE ISSUANCE OF NOTES.
At the end CT two years national banks may
issue circulation equal 10 10 per cent Of their
capital. and they may issue 10 per cent a year
for period OF five years until the total issues
equal 60 per cent Of their capital, the tax on
each Of the four issues last named to be at the
rate Of IL per cent a year.
In the discretion Of the board of control an
emergency circulation of 20 per cent. 10 be
taxed az the rate OF 9 per cent a year, and
further emergency circulation Of 20 per cent, TO
be taxed at the rate of per cent a year, may
be permitted.
Banks that agree currently TO redeem United
States notes equal 70 20 per cent Of their capital
shall the same time surrender to the United
States Treasurer additional amount Of United
States notes equal to 20 per cent of their capt
tai which shall be at once redeemed from the
gold in the general fund Of the Treasury and
shall not be reissued, but shall be cancelled and
destroyed The committee explains in this con-
nection that 20 per cent Of the present national
Of United States notes for whose redemption the
banks would be responsible If every national
bank should assume its share Of such redemp-
ton. One-half OF this amount-S65 900 600
would represent the United States notes that
the banks would at the same time present 10 the
Treasury Department for redemption. This
would relieve the Treasury from the burden OF
reoeeming S195, 100000 Of United States notes.
The remaining S151 100000 Of United States
notes would be amply covered by the S150.00O.-
600 Of gold IN the reserve fund Of the Treasury.
inasmuch as several millions Of United States
notes have been lost or destroyed.
THE TAX ON CIRCULATION.
Any national bank that has not assumed cur
rent redemption OF United States may, when
S1@5O00000 has been provided for. issue circu-
lation as above described, but upon the first 20
per cent Of its issue it shall be taxed Ia per
cent a year. instead OF the tax Of one-fourth Of
! per cent a year paid by banks assuming
United States notes. The banknotes not based
OF government bonds are TO be guaranteed by
a fund consisting Of United States bonds or
gold coin equal TO 8 per cent Of all notes out
standing, and this fund is to be used only for
the payment of notes Of failed banks. The
taxes on circulation and interest on public de-
posts are also TO be added to the guarantee
fund and any excess Of the fund above 10 per
cent Of all notes issued may be used to cancel
and retire United States notes. The total
amount Of circulating notes of all kinds shall
at any time exceed the amount Of the banks
paid up capital and they shall be a first lien
upon assets.
The banknotes authorized by this bill shall
be redeemed IN gold over the counter OF the
issuing bank and in order 10 insure their speedy
redemption the country IS TO be divided into
clearing house districts. National banks receiv-
ing the notes Of banks outside their own dis
trIct shall not pay them out again unless the
bank Of issue has an agency in such district for
refa Mi =
them for redemption 10 the district where they
belong.
MAINTENANCE OF METALS PARITY.
The provision directing the Secretary of the
Treasury 10 exchange gold for silver is intended
70 strengthen existing law by keeping all forms
Of government money at parity with gold; and
any additional burden upon the gold reserve is
avoided by limiting issues Of silver certificates
to s. and less and Of banknotes TO SO and
upward. so that no considerable number Of Ger
uhcates could at any time be collected and pre-
sented fer redemption.
Ine bullion in the Treasury ana so many
silver dollars as may be necessary are TO be
USED for the coinage Of additional subsidiary
silver coin.
National banks may establish places Of bust
ness this continent or IN the colonies
The Secretary Of the Treasury is authorized TO
deposit all public money in excess Of $5O,O0oooo
IN national banks, the banks 70 pay interest
thereon at the rate Of per cent year.
Mr.. FOWLER'S VIEWS OK MEASURE.
EXPLANATION OF THE PURPOSES OF THE
NEW BILL
Washington. March 9-Mr. Fowler explained
the purposes of the bill as follows:
The purposes Of the bill are: To transfer
from the government TO the banks the RESPONSE
pIlty Of protecting the necessary gold reserve
and the burden Of furnishing gold for export
tt.efehy saving our commerce from the dcstruc-