Waterbury Democrat., 1902-03-10
NEW FINANCIAL BILL
Measure to Secure a More
 Stable System
BANKS TO PROTECT GOLD RESERVE.
Thus Shifting This Responsibility From the Treasury and Pre- venting Commercial Un-
 eartainfY.

WASHINGTON, March 10. V Chair man Fowler of the house committee on banking and currency today introduced an important financial measure framed by the Republican members of the committee after conferences extending through the last two months 1t brings together into one financial measure q number of propositions which have been urged separately heretofore.
 MT. Fowler explains the purposes of the bill as follows:
 "The purposes of the bill are: To transfer from the government to the banks the responsibility of protecting the necessary gold reserve and the bur- den 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 tax imposed upon the people through the sale of bonds; to provide curren- cy always responsive 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 enter prise and American capital the privi- leges and opportunities of engaging in international banking under national law and so lay foundation upon which to build an American merchant marine; to remove the last yestige of doubt with regard to our standard of value.
 ''The measure provides for interna- tional banking, and division of bank ing and currency is established under board of control instead of single in- diyidual in the person of the comptrol- Ter 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 mem Der will retire every four years.
 If the measure now introduced should become law, it is confidently believed that the national banks will assume the current redemption in gold coin of $130,000,0 900 of United States notes. Tn consideration of the obliga- tion assumed by the national banks they will have the right during the suc- ceeding five years to issue gradually, as business may require, an amount of bank notes equal to 60 per cent of their paid up and unimpaired capital, provi- sion 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 cent of the amount of the notes so issued. The national banks hereafter will be required to pay inter- est upon the government deposits at the rate of per cent per annum.
 'sThis 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 inter- est on the government deposits, will be used to pay off the United States notes which the banks assume to currently redeem. It is asserted that the whole $130,000,O00 of United States notes which the banks have assumed to cur rently redeem will be paid off in thirty years out of the taxes collected upon circulation and interest paid by the banks upon government deposits.
 : SAThe 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 out standing at any time always will be co-ordinated with the amount of trad ing to be done, precisely as checks and drafts reflect the amount of commer- cial 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 authorized to establish themselves in the various cities of the country.
 '.No bank note of denomination less than $10 will be issued, and the secre- tary of the treasury shall not issue q silver certificate of a denomination greater than 5, and thereafter upon the presentation to him of 100 silver dollars or any multiple thereof and a demand for their redemption he shall | exchange gold coin for the same.''