The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1902-03-10
Representative Fowler VIII Offer
an Important Bill Today
SHIFTS The RESPONSIBILITY
Under the Law Banks Will Have to
Protect the Gold Reserve Instead
of the United States ~
Government.

Washington, March 9.-Chairman Fowl
er of the House committee on banking
and currency. to morrow will introduced
! an important financial measure framed
! by the Republican members of the conn.,
mittee after conferences extending
through the last two months. It bringsl
together into one financial measure a
| number of propositions which have been1
urged separately heretofore.
Mr. Fowler explains the purpose Of the
bill as follows:
THE purposes of the bill are: To trans
fer from the government to the banlxsI
the responsibility of protecting the nee
essary gold reserve and the burden of /
furnishing gold export, thereby saving
our commerce from the destructive ap-
prehensions growing out of raids upon the
gold in the treasury which can now
only be replenished by tax imposed up
on the people through sale of bonds;i
to provide a currency always responsive
and equal to the demands of trade every
where and to equalize and lower the1
average rate of interest in all parts of thei
United States; to secure for Americana
enterprise and American capital the
privileges and opportunities in engagingI
in international banking under nationals
law and so lay foundation upon which,
to build an American merchant marines
to remove the last vestlge of doubt, with
regard to our standard of value.
International Banking.
THE measure provides for International
banking and a 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 heretofore. The board will
consist of three members whose terms Of
office are for twelve years so arranged
that only member win secede every
| four years.
| IF the measure as now introduced
should become a law it is confidently be-
leved that the national banks will as
sumo the current redemption in gold coin
| of one hundred and thirty millions of
United StaSes notes. In consideration of
| the obligation assumed by the national
| banks they will have the right during
the succeeding five years to issue gradu-
ally as business may require an amount
of bank notes equal to so percentum of
their paid up and unimpaired capital,
provision being made also for an emer-
gency circulation.
.'As the notes are taken out for circu-
lation 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 per-
centum per annum.
This percentum 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 payl
off the United States notes which the
banks assume to currently redeem. 1t Is |
asserted tfhot the whole one hundred and
thirty millions 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 cir
cuation and interest paid by the banksi
upon the government deposits.
Clearing House Districts.
THE United States will be divided into
clearinghouse districts to facilitate the
current redemption OF the bank notes. so
that the amount of notes outstanding at
any time always will be co-ordinated with
the amount of trading to be done, pre-
cisely checks and drafts reflect the
amount of commercial work being car
ried on.
by and with the consent of the board ,
of control 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 ten dollars will be issued. and the .
Secretary of the Treasury shall not issHet
a silver certificate of a denomination /
greater than five dollars; and thereafter
upon the presentation to him of one
hundred silver dollars or any multiple I
thereof anf a demand for their REDEEM D.
ton, shall exchange gold coin for the