Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-03-10
A FINANCIAL BILL
of Great Importance Will Be
introduced, Today.
Senate Will Continue Ship Subsidies
and President Protection Bills.
House Will Kill Rural Delivery Bill
and Take Up Appropriations.

Washington. March 9.-Chairman
Fowler of the House committee on
banking and currency, tomorrow, will
introduce an important financial meas
ure framed by the Republican members
of the committee after conferences ex-
tending through the last two months.
1t brings together into one financial
measure number of propositions
which have been urged separately here
tofore.
Mr.. Fowler explains the purposes of
the bill as follows: 1.-THE purposes of
the bill are: To transfer from the gov
ernment to the banks the responsibility
of protecting the necessary gold re-
serve and the burden of furnishing gold
for export, thereby saving our COM
nerce from the destructive apprehen-
sionS growing out of raids upon tho
gold in the treasury which can now
only be replenished by a tax imposed
upon the people through the sale of
bonds; to provide a currency always
responsible and adequate to the de-
mands of trade everywhere and 10
equalize 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 a foundation upon
which to build an American merchant
marine; to remove the last vestige of
doubt in regard to our standard of
value.
The measure provides for interna-
tional banking and division of bank
ing and currency is established under
a board of control, instead of a single
individual in the person of the comp
troller of the currency as heretofore.
The board will consist of three mem
years, so arranged that only one MEM
Der will retire every four years.
IF the measure now introduced
should become a law, it is confidently
believed that the national banks will
assume the current redemption in gold
coin of the $130,0O0, 900 of United States
notes. In consideration of the obliga-
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 60 per centum of
their paid up and unimpaired capital;
provision being made also for an emer
gency circulation. AS the notes are
taken out for circulation the bank will
deposit with the government a guaran-
tee fund of per centum of the amount
of the notes SO issued. The national
banks hereafter will be required to pay
interest upon the government deposits
at the rate of l per centum.
This 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 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
$3.50 10000 00 of United States notes which
the banks have assumed to currently
redeem, would be paid off in 80 years
out of the taxes collected on circulation
and interest paid by the banks upon
government deposits.
1.-The United States will be divided in
to clearing house districts to facilitate
the current redemption of the bank
notes, so that the amount of notes out
standing at any time always will be CO.
ordinated 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, be-
ing business, being authorized to estab-
lish themselves in the various cities of
the country.
mo bank note of denomination less
than $40 will be issued anq the secretary
of the treasury shall not issue a silver
certificate of a denomination greater
than s. and thereafter, upon the pre-
sentation to him of 100 silver dollars or
any multiple thereof and a demand for
their redemption shall exchange gold
coin for the same"