The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-04-12
REPORT ON THE
CURRENCY BILL
house Committee FaV0rS
Amending the Present Law.
ELASTICITY TO BE SECURED
REccINAGE OF SILVER DOLLARS
INTO SMALL COINS.
ELASTICITY TO BE SECURED

Washington. April ia report from
the house committee on banking and
currency recommending the passage
OF the bin ito improve currency con-
oitions,' was fled In the house today
oy Chairman Fowler. The first section
OF the bin repeats the law which pro-
hioits customs receipts from being de-
posted IN national banks. The result
"i the present law I'm this matter. the
report says, IS unnecessarily TO tie up
tne money Of the country. The report
says that If states and municipalities
should lock up the proceeds of local
taxation as the national government
locks up its receipts the effect would
be disastrous. and yet there is as much
reason for such a course in the one
case as in the other.
The second section repeats the
monthly S3,000.O00 limit on bank note
retirement. The report says the re-
peal Of this restriction will give to the
national bank note circulation all OF
the elasticity which it is possible for
a bond secured circulation to have.
Subsidiary Coinage.
The recOinage Of silver dollars into
subsidiary silver coins is provided I'm
the third section of the bill. The limit
Of Sl00,000,000 as the total amount OF
subsidiary silver coins that can be in
existence at any one time is repealed
by this section. The report says that
on July I next the bullion from which
subsidiary coins may be made viii be
exhausted There is in the treasury
51S.012.O99 silver dollars. or. says the
report. according TO Secretary Shaw,
500 carloads Of thirty tons each. IT
would cost 100000 to recount this
money. and the secretary says that il
is worth I'm bullion less than half of its
face value I'm dollars. 1t is this money
that the bin proposes TO recon into
subsidiary silver as rapidly as the sec
rotary shall order. In this recoinage
there is estimated a profit to the gov
eminent Of Z cents on each dollar.
Removal of Limitations.
Relief to the treasury department in
It's inability TO meet the demand for
small bills, owing TO the manner in
which the present law limits their is
suance. is sought to be remedied by the
removal Of these limitations. On this
point the report says:
1T is probably true that the inability
OF the treasury to meet the demand
FOR small bills, combined with the
shortage in subsidiary coin in recent
years. has compelled the retention OF
small bills in circulation until much
of that form Of money has become
ragged and filthy and produced cOndi-
tions which have fully justified the Wig
orous crusade for clean money which
has been recently inaugurated- It is
believed. however. that with the large
discretion given 20 the treasury an6
the national banks under the provis-
ions OF this bill, supplemented by ar
abundant supply of subsidiary coin
much of the cause for. cOmDlaint vii
be removed
An ideal sanitary currency, how
ever. can only be secured by the sub
stitution of subsidiary coin for all one
and two-dOllar bills and improved
methods Of redemption for paper
money OF denominations of s. and up,
ward"