The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1902-03-12
4 new FINANCIAL POLICY.

| National Banks to Protect the Nee
essary Gold ReserYe--Govefnnlent
Not Responsible:
Washington, tdarch 9.-Chairman
Fowler Of the house committee on
banking and currency, tomorrow willin-
troduce an important financial measure
framed by the Republican members OF
the committee after conferences extend
ed through the last two months. 1t
brings together into one> financial
measure number of propositions
which have been urged separately
heretof fore.
Mr.. Fowler explains the purposes
of the bill as follows
s To transfer from the government
to the banks the responsi bility Of
protecting the necessary gold reserve
and the burden Of furnishing gold for
export, thereby saving our commerce
from the destructive apprehensions
growing out Of raids upon the gold in
the treasury, which can now only be
replenished by a tax imposed upon the
people through the sale of bonds; to
provide currency always responsible
and adequate to the demands of trade
everywhere, and to equalize 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 opportuni-
ties Of engaging in. international bank
ing under national law and so lay a
foundation upon which to build an
American merchant marine; to remove
the last vestige Of doubt with regard
to our standard Of value.
The measure provides for 1nterna-
tional banking, and division OF
banking and currency is established,
under a board Of control, instead of a
single individual in the person of the
comptroller Of the currency as hereto
FORE The board will consist Of three
members. whose terms of Office are for
10 years, so arranged that only one
member will retire every four years.
6 I 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 one hundred and thirty millions
of United States notes. In considera-.
ton 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 60
per cent Of their paid up and unim-
paired capital provision being made
also for an emergency circulation. As
the notes are taken out for circulation
the banks will deposit with the gov
ernment#a. guarantee fund Of 5 per
centrm 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 I per centnm per annUm.
This 5 per centum guarantee fund
and the tax upon the bank notes will
be issued 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.
s.The United States will be divided
into. clearing house districts to facili-
tate the current redemption of the
bank notes, so that the amount of
notes outstanding at any time always
will. be coordinated with the amount
OF trading to be done, preclselv as
checks and drafts reflect the amount
of commercial work being carried on.
BY and with the copsent of the
board Of control, banks may have more
than one place for doing business, be-
ing authoslzeo c;es % establish al E themselves
No bank note Of denomina ation
less than ten dollars viii be issued,
and the secretary of the treasury shall
not issue silver Certificate of a de-
nomination greater than five dollars,
and thereafter, upon the presentation
to him Of one hundred silver dollars or
any multiple hereof, and demand
for their redemption, shall exchange
gold coin for the Same.