Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-03-10
Seeks to Destroy Cause for Fear Of
Treasury's Collapse.
GIVES AN INTERNATIONAL BANKING LAW
Provides Currency Adequate to the General
Demand ~rade.
MERCHANT MARINE An. !. INTEREST
Measure Is 20 he introduced -
ChairInan Fowler of House
mittee on Banking and
Curreney.
lfrrom a staff correspondent.l


WASHINGTON, March 9.-(special.)-
Hhe republican members OF the house COM
mittee on banking snd currency have been
working for some weeks upon a general
Banking bill. II was finished yesterday
and the chairman Of the committee, Mr..
Fowler Of New Jersey. was Instructed to
Introduce II in the house as a committee
bill. II will be favorably reported to the
house tomorrow.
The purpose of this bill is to reorganize
the existing monetary system by national
banks assuming to redeem currently $780,
OOO, 900 Of United States notes. by permit
ting national banks to issue under proper
safeguards and during term Of seven
years asset currency proportioned to their
capital, by limiting issues Of silver cer-
tifcates 70 IS or less. by increasing the
coinage OF subsidiary coin. by providing
for the exchange Of gold for silver. by per-
mitting national banks to have places of
business in any part of the United States,
colonies and foreign countries. by requir-
ing national banks to pay interest at the
rate Of / per cent per annum on all de-
posits of public money.
Beard of Control to Supervise.
The bill creates a board Of control con-
,Sisting Of three members, who shall have
supervision Of all national banks and dis
charge the duties now vested in the comp
troller Of the currency. Any national bank
that shall assume the current redemption
In gold Of an amount Of United States notes
equal to 20 per cent Of its capital may
without depositing United States bonds
Immediately issue an amount Of bank notes
equal to 10 per cent Of its @Ppital At the
end OF one year It may issue an additional
10 per cent and on both issues II shall pay
tax at the rate Of e-auarter Of 1 pei
cent per annum. When Il ceases TO redeem
United States notes II shall pay tax or
ahe foregoing issues at the rate Of IN pei
pent per annum.
At the end OF two years national bank
may issue circulation equal to 1e per cent
of their capital and they may issue 10 pei
cent per annum for q period OF 1--WE years
until the total issues equal 60 per cent O.
their capital, the tax ON each of the fosi
ISSUES last named to be at the rate Of ~
Per cent per annum. In the discretion o.
the board Of control an emergency circula'
zion OF 20 per cent to be taxed at the rat,
of per cent per annum and further
emergency circulation Of 20 per cent I,
be taxed at the rate of per cent PEI
Annum may be permitted.
Redemption of United States Notes.
Banks that agree currently to redeem
United States notes equal to 20 per cent o
their capital shall at the same time sur
render to the United States treasurer al
additional amount OF United States note
equal to 10 per cent OF their capital, whicl
shall be at once redeemed from the gol
in the general fund of the treasury an
shall not be reissued, but shall be cancele
and destroyed. The committee explains 4
hat Of
present national bank capital is $3.50, 900, ,00(
the exact amount of United States note
for whose redemption the banks would b
responsible II every national bank shoul
assume its share OF such redemption. One
half OF this amount, SOS 000. 900. would repre-
sent the United States notes that the bank
would at the same time present to tn
Treasury department for redemption. Th
would relieve the treasury from the burde
Of redeeming $195, ,000, 900 of United State
notes. The remaining ll61. 900, 900
United States notes would be amply co,
cred by the $3.50 100000 OF gold in the rt
serve fund OF the treasury. inasmuch q
several million of United States notes hay
been lost or destroyed.
Guarantee of Circulation.
Any national bank that has not assume
current redemption Of United States note
may. when s195. 100000 has been provide
for. issue circulation as above describe
but. upon the first 20 per cent OF its issue
tt shall be taxed ~ per cent per annul
instead OF the tax OF one-fourth Of / D,
cent per annum paid by banks assumir
United States notes. The banknotes n,
based on government bonds are to |
guaranteed by fund consisting OF Unite
States bonds or gold coin equal TO 8 D,
cent OF all notes outstanding and this fur
is to be used only for the payment OF not,
of failed banks. The taxes on circulate
and interest on public deposits are al
20 be added 70 the guaranty fund and Al
excess OF the fund above 10 per cent OF 9
notes issued may be used to cancel al
retire United States notes. The tot
amount OF circulating notes OF all kin
shall not At any time exceed the smou
Of the banks paid up capital and they shs
be hrst lien upon its assets.
Redeemable in Gold.
The banhnotes authorized by this b
shall be redeemed in gold over the count
Of the issuing bank and In order to insu
their speedy redemption the country is
be divided into clearing house distric
National banks receiving the notes of ban
outside their own district shall not p
them out again unless the bank OF issue b
an agency in such district for the REDEEM
tion OF it's notes. but shall forward th'
for redemption to the district where tn
belong.
The provision directing the secretary
the treasury &c exchange gold for sily
Il intended to strengthen existing law
keeping all forms Of government money
parity with gold. and any additional b.
den upon the gold reserve is avoided
limiting issues Of silver certificates to
and less and Of banknotes to $40 and Z
ward. so that no considerable number
certificates could at any time be collect
and presented for redemption.
The secretary Of the treasury Is AUTH
ised TO deposit all public money IN exc,
Of $50. .000. 900 In national banks. the bar
20 pay interest thereon at the rate Of
per cent per annum.
The bill brings together into one nnAne