New-York tribune., 1902-12-12
A NEW BANKING BILL.
FOR IN ASSET CURRENCY.
RepresentatiUe Pugsley It's 4uthor
Conference To Be Held.
[BY TELEGRAPH TO THE TRIBUNEI


Washington Dec. 11.-Representatve Cor
! nelius A. Pugsley. of New York, introduced in
the House to-day a bill ito render the currency
mere elastic and responsive to the financial and
commercial requirements of the country This
bill. which is much more simple than the Fowler
bill, reported by the Committee on Banking ana
Currency at the last session of Congress, and
which avoids some of the objections urged
against that measure. embodies the views ex-
pressed by Mr.. Pugsley in his recent address
before the American Bankers Association, at
New-Orleans 1t provides that when it is
deemed expedient the Controller of the Currency
may by and with the consent of the Secretary
OF the Treasury. issue TO national banks two
classes of circulating notes in addition to those
now authorized by law The first class may be
issued to any national bank to an amount not
exceeding one-tenth of the face value OF the
United States bonds deposit by the bank
with the Treasurer of the United States to Sc
cure notes issued under existing law the same
to be secured by approved notes. bonds or pliiS
receivable having one or mere indorsers, or notes
cola teralIy secured. this security to exceed the
amount of circulation secured by it by at least
30 per cent The second class of notes may De
issued to any national bank whose surplus Is
20 per cent or more of it's capital AND may be
issued in an amount not exceeding 20 per cent
of the capital stock. the security 20 ne 'iie
same as for notes of the first class.
The circulation provided for is to be "A hfst
lien on all the assets of the bank issuing it.
Notes of the first class provided for are TO ne
subjected to a tax at the rate of per cent
year and those of the second class are TO pe
taxed at the rate of per cent year Ihe
circulating notes provided for by the bill not
to differ in color design from the Ordinary
bond secured national bank notes. The neces-
sary provisions for the retirement ana redeihP-
ton of the notes made
"The bill that 1 have just introduced" said
Mr. Pugsley, "will. l believe, give some measure
of elasticity to our currency. Thus. for in
stance, when the moving of the crops or an I'M
pending financial panic demands larger CIR
culatioD it can once he had while, when the
occasion for the increase has ceased, coh-
traction will follow naturally until the clrcula-
ton shall again be brought to the bond secured
currency
nevertheless of the opinion that security speclh-
cally set aside would prove more erectuaI
against loss than would such a lien. AS to the
amount of currency that might be issued If all
the banks the country took advantage or the
provisions of the bill. l should say between
$40 600 OO0 and $150,000,00O additional circu-
lation would be at once available, If 80 per cent
Of the banks capital in circulating notes De
kept on hand by the Controller of the currency
as provided in the bill. Any imitation of the
currency would be avoided by the tax imposed
upon this circulation
Mr. Pugsley's bill is introduced just at time
when an effort is to be made to bring the 9ues-
ton of currency reform to the front in Congress
MI Fowler, whose bill was reported in the Iast
session has reached agreement with the he
publican leaders in the House that conference
of Republicans shall be called FOR next Iues- s
day evening to consider the question OF taxing
I'D his bill as a party measure and bringing IL
to a vote AS a considerable number OF Re-
nuhIicans do not favor the Fowler Dill 1t is
doubrfllI if the party be induced to take 1t
I'D. Mr. Pugsley would be glad to have his Dill
indorsed instead, but he does not expect such
action He has introduced it in the present ses-
sion so as to get it before the country IN the
hone that something may be done with it by the
next Congress.