Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-03-10
First Purpose is to Make Banks
Protect Necessary Gold Reserve
NO GOVERNMENT LIABILITY
Hoard of Control so Take Place Of
Comptroller Currency No uS.Notes
Less Imam $40 Denomination,

Washington March s,--Chairman
Fowler Of the house committee on
banking and currency tomorrow will
introduce an important financial
measure framed by the Republican
members Of the committee, after con-
torences extending through the last two
months. 1t brings together into one
financial measure a number o, ques-
tons which have been urged hereto
fore MI Fowler explains the purposes
Of the bill as follows
The purposes of the bill are; To
transfer from the government to the
hanks the responsibility Of protecting
the necessary gold reserve and the
burden Of furnishing gold for eXporta-
tlon, thereby saving our commerce
from the destructive apprehensions
growing out Of raids upon the gold In
the treasury to provide a currency
always responsive and equal to the de-
mands Of trade everywhere and to
cquali2e and lower the average rate
OF interest In all parts OF the United
States. to secure for American en-
terprlse and American capital the
privileges and option In engaging In
international banking under national
law and so lay a foundation upon which
10 build an American merchant marine,
TO remove the last vestige OF the doubt
with regard to our standard of value.
The measure provides for information
al banking and division for banking
and currency established under n 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 officers whose terms
of Office are for twelve years. If the
measure now introduced should become
a law It Is confidently believed that
the national banks would assume the
current redemption in gold coin OF $780,
C0O0OO of United States notes In con-
sideratlon OF the obligation assumed
by the national banks, they viii have
the right during the succeeding five
wears to issue gradually as may be re-
quired an amount Of bank notes equal TO
GU per cent Of their paid up and unlm-
ialred capital; provision being made
also for an emergency circulation.
As the notes are taken out for cir
culatlon the banks win deposit with
the government a guarantee fund Of
Per cent of the amount OF the notes
SO issued. The national banks here
after win be required to pay interest
upon the government deposits at the
rate Of ] per cent per annum,
This : per cent guarantee fund and
the tax upon the banking notes will be
used to protect the bank notes and the
excess Of such taxes with the interest
on government deposits will be used to
pay off the l'pited States notes which
the banks assume to currently redeem
il IS asserted that the whole $4,000,
COO Of United states notes which banks
have assumed 10 currently redeem. will
be paid Off In 30 years out Of the taxes
collected upon circulation and interest
paid by the banks upon government de-
posts
The United States will be divided into
clearing house districts to facilitate the
current redemption Of the bank notes
70 that the amount Of notes outstand-
ing at any time always will be Coz
ordinated with the amount Of trading
10 be done precisely as checks and
drafts reflect the amount Of CONNER
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, being au-
thori2ed TO establish themselves In the
various cities Of the country
No hank note of a denomination less
than $40 viii be issued and the secre-
tary Of the treasury shall not issue a
silver certificate Of denomination
greater than 81 and thereafter upon
the presentation to him Of 100 silver
dollars or any multiple thereof and a
demand for their resumption, shall ex-
change gold COIN for the same