The sun., 1902-03-11
. NEW CURRENCY BILL.
Its Purpose Is "to Maintain the Gold stand
ard and Provide an Elastic Currcncy."

|
Its Purpose Us "to Maintain the Goid stand
ard and Provide an Elastic Currcncy.'
WASHINGTON, March io.-Mr Fowler Of
New Jersey, chairman Of the Committee
on Banking and Currency, introduce in
the House to-day a bill 10 maintain
the gold standard. provide an elastic cur
rency. equalize the rates OF interest through
out the country and to further amend the
national banking laws" Some weeks ago
Speaker Henderson gave a dinner to Mr..
H. H. Hanna Of Indianapolis, chairman Of
the Monetary Commission, members OF the
committees on Banking and Currency,
and on Coinage, Weights and Measures,
and other gentlemen interested in financial
| matters. II is understood that the bill
| drawn by Mr. Fowler Is intended 20 meet
| the views of the gentlemen as expires sod
on that occasion, and will be supported
by the commercial interests there repre-
sented Mr. Fowler, explaining the pro-
visions OF the bill, says:
| What we have sought 10 do in this bill
is TO relieve the Treasury of the United
| States from the constantly recurring dam
| ger growing out of "A demand for gold coin,
| and transfer this obligation 10 the COM
! mercial interests of the country repre-
! sented by the banks. There is another pur-
| pose in this feature of the bill, and that
is to insure a sufficient quantity of gold
at all times in the banks to prove the char
acter of the credits they hold Gold being
| our standard of value, the Government
reserves should not be interposed between
the reserves Of the banks and the banking
| operations of the country
1T should be observed that the only way
| in which the Government is able to re-
| plenish its reserve, whenever il becomes
| depleted. is through the sale of bonds
and the consequent imposition Of taxes
| upon the people, while the banking in
terests Of the country will always secure
sufficient gold TO make an ample reserve
by fixing a price upon the use Of gold from
| day to day in raising or lowering the rate
| of interest at the points OF export.
THAT the present bank-note system of
| the country sustains no natural relation
| 70 the amount of work to be done is evil
dent to every careful student of the sub
| ject, for We have had during the past
twenty-three years a variation from 1925,
100000 notes in 1879 10 tl25 000,0o in 1890
| to $3.50, ,0OO, 600 in l902-proof unanswerable
| that the profit or loss on Government bonds
and not the demand for bank notes has
been the controlling factor in determining
| the amount of bank notes in circulation.
"The relation between bank notes and
business should be as natural and actual
a. the relation between checks and drafts
and commercial transactions, and II il be-
| lieved that this most desirable end will
| be attained by the present measure. That
| there Is nothing at the present moment more
| 20 be desired as means Of extending our
export trade and securing a sure foothold
| in the various quarters of the earth for
American productions than the right to
establish banking relations, every one will
| admit. One of the main features of the
| bill, therefore, IL to give TO our national
! banks the right to establish places Of busi-
| ness in any of our possessions or in any
| foreign country.
aIn this connection il is to be observed
| that il is a matter of the highest importance
| that the rates of interest throughout the
/ United States should be equalzed and
| lowered. because If we hope TO continue
| to successfully compete with the other
| great commercial interests we must have
a rate of interest approximating or 3
THAT there is still much doubt in the
minds of some with regard 10 the effect
| of the laws looking 10 the esta ablishment
| of the gold standard, one of the objects
Of the measure is to place this subject
| beyond question.
Possibly just fear has been entertained
| about the advisability Of making our silver
| dollars exchangeable with gold as long as
|
| standing and more than $3.50, ,OOO, ,oC0 national
| bank notes are to all intents and purposes
! an equal burden upon the Treasury. To
| remove every possible apprehension, the
| bill provides a method whereby the national
| banks are TO assume the redemption of
! $3.50 900 900 OF United States notes, The Gov
! eminent concurrently redceming and pay
! ing OF one-haf Of that amounts or so5 10000.
! These two sums make total Of sl95.OW,oO
| and leave a balance of only $751; ,OO0, 900
! outstanding, which will he much more than
| covered by the $50. 900 900 of gold in the
| Treasury, a. il Is confidently believed that
! several millions Of United States notes
| have already been lost or dest royed and
! will not be presented for redemption. Al
1 the same time the Government will be re-
| lieved from the redemption of the national
| bank notes now outstanding, 80 that tins
! total burden OF 500, ,O00,o 600 will be removed
| from the Treasury Of the United States
and the way made clear for the redemp-
| tion Of the silver dollars in gold coin. That
| this NAV be done without the least possible
| risk TO the Treasury, the further precau.
! ton has been taken 20 limit the issue OF
| silver certificates hereafter to s. and under,
| while no national bank notes will be issued
| in any denomination of less than $40.
"To summarize the purposes OF the blll
! then, IL will be seen that We believe We
| have devised a plan Of completely relieV-
! ing the Treasury from its present dangers
| Of providing the country with an astic
| currency which will always be responsive
! the demands of trade everywhere and CO.
| ordinated with its current demand, that
the rates Of interest in all parts Of our conn
| try will he much lower and equalzed, that
| the last doubt with regard TO our standard
| of value will be eliminated, that American
enterprise and capital will find its way To
| all the ports of foreign commerce, and that
| the foundation is laid for securing TO our
country the exchange market OF the COM
mercal world.
RIIIs Passed In the senate.
W.spNoToS. March 10 A hill donating