The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-10
URCENEW BANK PLAN
CONGRESSMAN FRAME MEAc
URE TO INSURE STABILITY
OF CURRENCY
PUT NEW DUTY ON BANKS
Government to he Relieved of the
Redemption in Gold of $780,
100000 of United
States Notes.

WASHINGTON, March 9.-Chairman
foWler, OF the house committee on bank
Ing and currency, tomorrow will introdueo
an important financial measure. framed
py the Republican members Of the com
mlttee after conferences extending
through the last two months. 1t brings
together into one financial measure n
number of propositions heretofore sepa.
rately urged
Mr.. Fowler explains the purposes Of
the bill as follows:
The purposes of the bill are: To
transfer from the government to tina
banks the responsibility Of protecting the
necessary gold reserve and the burden Of
furnishing gold for export, thereby saw
ing our commerce from the destructive
apprehersions growing out Of raids on
the gold in the treasury, which now can
only be replenished by a tax imposed
upon the people through the sale Of
bonds; to provide a currency always re-
sponsive and equal to the demands of
trade everywhere in all parts Of the
United States; to secure for American en-.
terprise and American capital the privi-
leges and opportunities in engaging in
international banking under national law
and so lay foundation upon which to
build an American merchant marine: to
remove the last vestige Of doubt with re-
SdIb " puI SltHNdIu OI value.
The measure provides for international
banking and a division of banking and
currency established under a board OF
control, instead of a single individual in
the person of the comptroller of the cur
rency, as heretofore. The board will
consist of three members, whose terms of
Office are for twelve years. so arranged
that only one members term will expire
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 $780,
100000 in United States notes. In consid-
Grafton of the obligation assumed by the
national banks they will have the right
during the succeeding five years toSissue
gradually, as business may require, an
amount of bank notes equal to 60 per
cent of their paid up and unimpaired
capital; provision also being made for an
emergency circulation.
LAS the notes are taken out for cir
culation the banks will deposit with the
government a guarantee fund of per
cent of the amount of the notes so is
sued. The national banks hereafter Will
be required to pay interest upon the gov
ernment deposits at the rate Of l per
cent per annum.
This per cent 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 $130, 100000
in United States notes which the banks
have assumed to currently redeem will
be paid off in thirty years out of the
taxes collected upon circulation and in
terest paid by the banks upon govern
ment deposits.
with the consent of the board Of con-
troll, 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 denomination less
than $40 will be issued, and the secre-
tary of the treasury shall not issue a
silver certificate of denomination great
er than s.; and thereafter. upon the
presentation to him of 100 silver dollars.
or any multiple thereof, and a demand
for their redemption. shall exchange
gold coin for the same"