Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-24
DEPOSIT OF MONEY
TO REPEAL RESTRICTION ON
WITHDRAWAL OF CIRCULATION.
Proposed Recoinage of Silver Dollars
for Subsidiary Coin-To Substitute
Gold Certificates for Silver.

Representative Hill OF Connecticut today
| introduced in the House A financial bill
| which is one of the most important meas
| ures brought forward far this session.
| 1t is designated "A bill to improve cur
| rency conditions" Mr.. Hill explained to-
| day, in speaking OF the proposed law. that
It is purely administrative measure. In
volving no change of system, but providing
for the better administration Of the present
system of currency authorized by law.
In framing the bill the effort OF the au-
| thor has been to meet all Views on the
| much-discussed problem Of currency expan-
| sion. Mr.. Hill believes the measure will
meet with the approval of all inanciers,
commencing itself to all who have to deal
| with the national moneys.
| The bill aroused much interest and COM
ment at the Capitol today. being quite
| favorably discussed wherever its provisions
were known. The bill goes to the commit
| tee on banking and currency, of which Mr..
| Hill, the author. has been one OF the senior
| members.
Deposit of Public Money.
Section of the proposed act provides an
amendment to section 5l5S of the Revised
| Statutes so to allow for the uniform
treatment of all public moneys. The amend.
ment strikes out the words except receipts
| for customs,''- so to give the treasury
officials the right to treat all receipts alike.
| including Internal revenue and customs.
! Heretofore the law has allowed the deposit
| in national banking associa tfonS Of all mon
'eys except receipts from customs" Under
! Mr. HIS bill this restriction is removed
| and all government receipts are 10 be treat
| ed in uniform manner.
Withdrawal of Circulation.
The second section repeals so much OF
the act approved July L. 1882. as prohibits
national banks from depos. ting more than
Sc, 900, eco of lawful money during any calen-
dar month for the purpose OF withdraw ng
! circulating notes. The objec: of the re-
! movaI of tie Ss. .C0O.C00 limit on bank note
| withdrawals is to leave TIE question or
| withdrawals discretionary with the banks.
| There have been times, 1t Is stated wnsn
| the banks have refused to issue notes
when such acton would have been WEI
/ coined by the government. Simply because
| they were not allowed to make WITHDRAW,
| ais when they wanted to do so. Mr.. HUI
| believes that this is the only way TO pro-
| vide for the elasticity of bond-secured cur
| rency.
Effect of tie Section.
| Mr. Hill does not believe that the removal
! of this limit of withdrawals will result In
! any stringency by locking up legal tender
| in the treasury. When a bank desires to
| withdraw it's circulating notes from the
| treasury it is required to deposit an equal
amount of legal tender. There has been
| talk to the effect that il wholesale with
| drawals should be made the circulation Of
money would be curtailed.
Mr.. Hill fears no such contingency, for
| If the circulation was needed the reduced
price of the bonds when thrown upon the
| market would afford greater profit on cir
culation. and it would be again taken out
! by the banks.
| Treasurer Z. H. Roberts, in his latest re-
| port shows that during the past six years,
| ''iII average of only one month In er-
| ely twelve has the limit been reached.
| AS matter of fact, the effect CT the
present restriction has tended TO prevent
| the issue of notes rather than to stop their
! withdrawal.
To RECON- Silver Dollars.
The third section of the bill provides that
the Secretary of the Treasury be authorized
without any regard to any heretofore pre-
scribed limit OF amount Of subsidiary silver
coinage and as public necessities may de-
n,and from time to time. to recoin standard
silver dollars into such authorized denoml-
nations of subsidiary silver coin as he may
deem necessary to meet public require
n.e ntS.
the increased demand for subsidiary silver
coins, such as half dollars, quarters and
dimes. The House last year passed bill
to provide for the recoinage of the standard
silver dollars into subsidiary coins. The
Senate. however, put an amendment on the
sundry civil bill providing for such increase
only so far as it could be secured from the
bullion in the treasury This supply or
bullion will be exhausted July next, owing
to the continued coinage of the standard
silver dollar. Should further demand ex-
jst for subsidiary coin at that time Mr.
Hills bill makes 1T lawful for the Secretary
of the Treasury to melt up the old silver
dollar cart wheels and coin them over
into halves, quarters and dimes.
Silver Certificates.
Section of the bill introduced today au-
thorized the Secretary of the Treasury TO
| wit thdraw from circulation, from time 10
time any denominations of silver cerun-
Gates and United States notes. and in sub
stitution therefor to reissue like amounts
of certificates and notes of such authorized
denominations in his judgment public
convenience and necessity may require.
There is an ver-increasing demand for
81 and 50 bills aside from the call for s.
and SO denominations. The supply or the
smaller certificates does not meet the de-
mand The issue of these small notes is
limited to the amount of silver certificates.
National banks are not allowed to issue
notes of smaller denomination than %.
United States notes are limited TO sio ana
gold certificates are not issued below de-
nomination of 500. The idea of Mr.. Hill
is TO call in as often as necessary the 70
and $40 silver certificates and issue In their
place 81 and 81 certificates.
Issue of Gold Certificates.
To fill the gap made by the withdrawal
of the $40 silver certificate the bill provides
for the issue of gold certificates of the de-
nomination of $40. To fill the gap caused
by the withdrawal of the So certificates the
bill proposes to remove the restriction on
national banks by which only one-thrd OF
their circulation shall be In S. notes This
leaves 1t discretionary with the banks as to
the denominations of its notes so long as
they are within the law. The purpose OF
the .one-third" clause in the national
banking law was to insure sufficient sup
ply of $5 notes 1t is claimed that this pur-
pose has not been met and that the banks
should be left free to fix the amount OF
their circulation in the various denomina-
tions to meet the needs of their GUS
toners.
Tax on Circulation.
The last section provides for a uniform
tax Of one-haif Of / per cent on thA