The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-03-02
REPORTS ON THE
CURRENCY BILL
Mr., Fowler Secures Favorable
Action by Committee
TO CIRCULATE MORE MONEY
Bill Provides for Issue of More Ma
tional Bank Notes and Distri-
button of Customs and Ma
tionaI Revenue Receipts

Washington, March 1.-The house COM
mittee on banking and currency today.
by a vote of 7 to "a strict party vote
authorized favorable report on the cur
rency bill introduced yesterday Ivy Eep-
resentative Fowler, chairman of the
committee. In reporting the bill the CON.
nittee says:
I'm addition to providing for the issue
and circulation of national bank notes,
the object of this measure is to imme-
diately put back into circulation any
money the government may collect
through its customs receipts, as well as
through its collections from internal
revenue.
"The available cash balance now in the
treasury is 1922. ass, SIS. OF this amount
there is now in national bank deposit
tories $50, Az, 424, leaving net balance
in the treasury of 81, 1914, asa. The amount
of money now in the treasury available
for all purposes is 1884 454 from which
amount, If we deduct s5O0OO,OOO as a ne
cessary working balance for the treasury,
we shall have only S21, 994 454 to meet the
demand on the treasury growing out of
the Panama transactions, which will call
for $50, COO OO0
Money from National Banks.
1T Is therefore evident that either the
government must at once call for $685.,
100000 from the banks. or arpropriating
$50, 100000 from the amount now in the
treasury, leave q working balance of
only about 81, COO, Co., which must be
supplemented by collections from the
various resources until the amount in
the treasury shall be brought up to $780,
100000 before an appropriation can be
made for any other purpose without in
fringing upon what has generally been
considered a proper working balance,
viz $5O,0000OO. 1t is therefore evident that
the government will not have any addi-
tiopal money to deposit with national
banks for the next six or eight months,
IT, indeed, it shall have collected as
much as $30O0O,0OO within that time.
The amount now deposited with ma
tional banks is SAB Ill, sos, for which the
government holds government bonds as
securities amounting to about sips, 900 900
and about $22, 600 900 of other bonds. The
measure now submitted provides that the
government may deposit any public
money, including this $143, 100000, with ma
tional banks in no case exceeding in
amount 70 per cent of the paid up and UNI
impaired capital of any national bank,
without exacting government or other
bonds. but the government shall have
first lieu upon the assets Of such bank
and shall receive on such deposits at the
rate of per cent per annum, payable
semi-annually ION the first days of Janu-
airy and July.
Bonds viii be Issued.
1T will be aen 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 government deposits,
viz: SIPS 900 of government bonds and
$22, 100000 of state aud other bonds now
held by the treasury In addition thereto
as security for such deposits. The bonds
so released may be then used by the
banks for further increasing their bond
secured circulation, which will undoubt-
eddy be much needed during the coming
fall months.
1T is clear that the plan proposed is
perfectly safe and that If the rate of in
terest had been per cent and the ac-
counts were brought down to date, the
amount that the government would have
received during the past twenty-four
years, had the bill reported been in ope-
ration, would have been nearly $50 0c0 600
and the government would not have lost
a cent.
Must Not be Disturbing Factor.
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 interest in
stead of allowing 1t to become a variable
quantity, to be increased or decreased at
the pleasure of the secretary, circum-
stance that must necessarily result In in
tense rivalry, bitter criticism and con-
stantly subject the treasury to endless
scandal"
Mr.. Fowler introduced a resolution pro-
Viding for q rule for the consideration Of