The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-03-02
G0VERNM EMIT MONEY
FOR BANKS AT 2
PER CENT
FavOrs Fowler Cur
rency. Bill Providing for
Deposit of Treasury Cash
With Approved Banks
Without Bond Security
Reasons in Support.

WASHINGTON, D. c., March l.
The house committee on banking and
currency today, by a vote Of to .
strict party Vote-authoriZed a IA
Norable report on the currency bill in
PRODUCED yesterday by Representative
Fowler. chairman of the committee,
In reporting the bill the committee
says:
In addition to providing for the is
suing ard circulation of national bank
notes, the object of this measure ia
TO Immediately put back into circula-
ton any money the government may
collect through its customs receipts, as
We'll as through Its collections from in
ternal revenues.
The available cash balance NOW in
the treasury is 1922, 66S,S7S. OF this
amount there is now in national bank
repositories $3.50, 994.654 The amount
of money now in the treasury avafIa-
pie Tor all purposes is $71.994456. from
which amount, If we deduct $50 600 600
as necessary working balance for the
treasury, we shall have only S21 qg4 456
to meet the demand on the treasury
growing out OF the Panama transac-
ton, which will call for S50.OOOOOO. II
Is therefore evident that this govern
ment must at once call for 5000. 600
from the banks, or appropriate $50
100000 from the amount now in the
of only about S22 100000 which must
be supplemented by collections from
the various resources until the amount
In the treasury shall be brought I'D TO
$4,000 900 before an appropriation can
De made for any other purpose, with
out infringing upon what has general
ly been considered a proper working
balance, viz, S50,00O.OOO.
No More to Deposit.
ut is therefore evident that the gov
eminent will not have any additional
money TO deposit with national banks
Tor the next six or eight months, II
indeed it shall have collected as much
as S3O,000,O00 within that time.
The amount now deposited with
national banks Is S143111,59S. for
which the government holds govern
ment bonds as security amounting 70
about $125.O00,O0O, and about $22 .0OO.-
600 of other bonds. The measure now
submitted provides that the govern
ment may deposit any public money,
including this $1430OOOOO. with ma
tional banks, in no case exceeding in
amount rs per cent Of the paid uD and
unimpaired capital Of any national
bank, without eXacting government or
other bonds. but the government shall
have first lien upon the assets Of
such bank, and shall receive interest
on such deposits at the rate Of per
cent per annum, payable semi-anuual-
ly on the LIST days of January and
July.
1T VIII be seen that the effect Of
this provision will be within the next
few months, say certainly within a
year. to release. the total amount Of
bonds now deposited to secure govern
ment deposits, viz: S125, 100000 OF
government bonds and $22. 100000 OF
state and other bonds, now held by
the treasury, In addition thereto as
security for such deposits. The bonds
so released may thus be used by tha
banks for further Increasing their bond
circulation, which will undoubtedly be
much needed during the coming fall
months.
Big Interest Earnings.
at is clear that the plan proposed is
perfectly safe, and If the interest had
been per cent and the accounts were
brought down to date, that the govern
ment would have received during the
past twenty-fOur years, had the bill
reported been in operation, nearly $50
100000, and the government would not
have lost a cent. The government
should cease to be a disturbing factor
in our business affairs.
1T was this thought that moved
your committee to fix the rate OF in
terest, instead of allowing it to be a
variable quantity, to be increased or
decreased at the pleasure Of the secre-
tary, circumstance that must result
In intense rivalry. bitter criticism and
constantly subject the treasury to
endless scandal"
The friends Of the new Fowler bill
Will urge its adoption instead Of tha
Aldrich bill, should that measure come
over from the senate, and also in place
of the Payne bill.