The daily silver state. [volume] (Winnemucca, Nev.) 1903-1907, 1903-09-14
FINANCIAL LEGISLATION PROPOSED

FINANCIAL LEGISLATION PROPOSED
The speech of Senator Beverage to
the bankers of Indiana at their con-
vention a few days ago. takes the
same position as outlined some time
ago in the Tribune, as to the legisla-
ton on financial subjects that may be
expected at the coming session of con-
gress, to-wit, that as little as possible
will be done. As the senator outlines
it. the changes from the present sys-
TEN will be moderate, and the rene
dies for such troubles as exist that will
be provided, will be of a simple nature.
That is the warning course, and COM
bined with the situation II they desire
to by refusing to give way to d~istrust,
and by maintaining credits and conf
dence, it will enable the country to
get along very well for the present.
On the other hand, Representative
Charles N. Fowler of New Jersey, who
will head the house committee on
banking and currency, is preparing to
press a bill. which as reported is of the
most important and far-reaching char-
acter. He is comforting with bankers
and business men throughout the
try on the points he proposes to in
clude in his measure. These joints are
three, and taken altogether they pro-
pose such changes as would be consid-
cred generally of the utmost import
ance.
First, he would provide for the elm
instion Of the greenbacks from their
functions of currency disturbers by
shutting them up in the banks, I'M
pounding" them is the phrase used.
This he would do by making them the
cash reserve of forty per cent for the
national banks. This is a clear-cut
proposition, and under it, in c%ojunc-
ton with the other propositions, the
hope would undoubtedly be that the
whole of the ~greenbacks would be TAX
Ell up and kept out of circulation.
This would materially tend to stabil-
ity. and would destroy the endless
chain" which has been the cause of
so much distress to the treasury, and
has put Uncle Sans gold at the dis
posal Of the Wall street spectators
whenever they were short of gold. II
was the operation Of this endless
chain" that caused President Cleve-
land to issue $3.50. 900, 900 of bonds in
a time of profound peace; under the
obligation to redeem the greenbacks
in gold, the treasury is Obliged prac-
tically to supply the gold not only for
our own needs and the maintenance
of the gold standard in this country,
but also for the exporters, on the de-
mand of foreign countries. This con-
stitutes peril to the treasury whenever
there is a money stringency.
Second, it is proposed to deposit the
government cash in the banks, at 2
per cent interest. This would be a
frank abandonment of the sub-treas-
ury system, which has always been a
menac to the business interests of
the country by locking up large guam
titles of money that is needed in the
channels of trade. OF course, ample
security would be exacted for the safe
ty OF the money. This would tend
powerfully, without doubt. to the or
ganization of a consolidated agency
for all the national banks; a sort OF
bank for banks, as the bank of Eng
land is; and the effect would be "a
strengthen enormously the business
interests of this country. and free the
United States from any deleterious in
fiuence upon them.
Third, asset currency to be issued
on gold coin, or government bonds
these deposits to be five per cent OF
the proposed issue. The records show
that this would be perfectly safe;
there have been nothing like thu
losses of five per e on the cur
rency issues. This five per cent de
post to be permanent, and with tn
two per cent interest on government
deposits and the one per cent currenc.
tax, to form a guarantee fund whieI
would presently reach ten million dol
lars, and when it does, the excess owe
that sum would be used to take up tn
greenbacks and issue gold certificate
In lieu of them. This part OK IN