Evening star., 1902-03-10
RETIRING GREENBACKS
CURRENCY BILL INTRODUCED By
MR.. FOWLER.
Burden Of Protecting Gold Reserve te
Be Transferred to the Banks
Other Features.

Chairman Fowler Of the House commit
tee on banking and currency today Intro
duced q financial measure framed by the
republican members OF the committee after
conferences extending through the last two
months. 1t brings together into one finan-
cial measure a number Of propositions
which have been urged separately hereto
FORE Mr.. Fowler explains the purposes OF
the bill as follows:
Purposes Of the Bill.
1.-THE purposes Of the bill are: To transfer
from the government to the banks the re-
sponsibility Of protecting the necessary gold
reserve and the burden Of furnishing gold
for export. thereby saving our commerce
from the destructive apprehensions grow
Ing out Of raids upon the gold In the treas
ury. which can now only be replen1shed oy
tax imposed upon the people through the
sale Of bonds; to provide a currency al
ways responsive and adequate to the de-
mands of trade everywhere, and to equaiize
and lower the average rate Of interest in
all parts of the United States; to secure for
American enterprise and American capital
the privileges and opportunities OF engaging
in international banking under national
law and SO lay a foundation upon which
to build an American merchant marine; to
remove the last vestige Of doubt with re-
gard to our standard OF value.
'Ine measure provides lOE HtSEHd
banking, and a division of banking and
currency Is established, under a board OF
control, instead Of a single individual In the
person of the controller Of the currency, as
heretofore. The board will consist OF three
members, whose terms OF office are for
twelve years, SO arranged that only one
member will retire every four years.
Redemption OF Greenbacks.
IF the measure now introduced should
1ou Z 10 hp1i
the national banks will assume the current
thirty millions Of 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,
an amount of bank notes equal to W per
centum Of their paid-up and unimpaired
capital. provision being made also for an
emergency circulation. AS the notes are
taken out for circulation the banks will
deposit with the government guarantee
fund of per centum Of the amount or the
notes so issued. The national banks here
after will be required to pay interest upon
the government deposits at the rate of per
centum per annum
This 5 per centum 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 govern
ment deposits will be used to pay off the
United States notes. which the banks as
sumo to currently redeem. 1t is asserted
that the whole Sl3O.OOO 600 Of United States
notes, which the banks have assumed to
currently redeem. will be paid off in thirty
years out Of the taxes collected upon crcu-
lation and interest paid by the banks upon
government deposits.
Redemption of Greenbacks.
''The United States will be divided into
clearing house district to facilitate the
current redemption of the bank notes, SO
that the amount of notes outstanding at
any time always will be co-ordinated with
the amount of trading to be done, precisely
as che cks 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
to establish themselves in the various cities
Of the country.
mo. bank note Of a denomination less
than ten dollars will be issued, and the
Secretary of the Treasury shall not issue
"a silver certificate of a denomination
greater Than five dollars; and thereafter
upon the presentation to him Of one hun
dred silver dollars or any multiple thereof
and a demand for their redemption, shall
exchange gold coin for the same"