New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-12-06

When TIL. IS accomplished tle amount al notes in cir
culaon will he guiatcd strictly by tie demand WheA
the volume shall he greater diam necessary 10 do ~
business of the country te hanhs VIII De called upon -
active aud more currency required, the banks will ors
paud their issues, aud retemTtons will not be demante5
until the Of activity is II an tho banks are
required to conform uniform standard Of responsible
ny IN THIS PARTICULAR the burden, being equally divided
aMoD5 al IL proportion 70 their CIRCULATION VIZ De peht
because The aggregate redemption at any given time WI
not exceed The suIpus Of notes IN circulation WILLIE
Seh rue = not estaDhshed me budan Wll be equally
divided falling most heavily those banks which con
form TO the Highest standard. compelling them hy tie
FREQUENT return Oh thef Hoes 10 CONTRACT ter issues
while no tie same time the remote banks vii be tempted
70 undue expansion 10y the difficulty and expense ~
turning ihclt notes Tor REDEMPTION Ia MS rs ~ el
other cases the inferior currency VII be the more abu
Rigid, unfang convertblity IS the only safe me ana
In the end. tic suost economical TITS an obhgatioR
which every national bank owes 10 the systc 30 con-
tribute ITS due share 10 the maenabce OF circulation
OF Uniform value This it can 90 only py keeping rs owa
which rot comprehensive thorough rigid win fan
Any halfway, doubtful. voluntary raIgement sill noe
ICES the issue OF bank notes currency. Las rlgt 70
require all banks TO conform 70 tie highest standard
The currency Of a country belongs 10 tie people ana
the Government which represents tho people should sea
TO that the people have the very best currency poSsb@
AT present there is no immediate demand Tor the re-
dempton OF national bank notes but 1t would be ore %
the hea.hSst evidences Of returning so1ndnsss ~ OR
ders should command small premium, It would beginB
bank note accepted aud treated as promise to pan
and not the payment Itself 10 would mark an era n
legal tender notes.-the date OF appreciation Ia value
Az the time II would be healthy reminder TO tue
banks that their circulation is Liability payable de-
mand.
Attention is respectfully called TO practice PREVAILING
less in tie banks Of the principal cities, OF pay
Ing interest the balances Of county banka praee
characterized by tie Chancellor Of the Excequer of kss
crisis OF 1884, as one emnenty liable to abuse and con
tanning within it elements OF danger, ard 20 Nhlea
Country banks keep posts with city banks or Pu>
pose OF acitaiI Xcbsngc ih delE OTh 0as
iness and ordinarily 1t is to be presuntd they nnd p
MN IN Go,Is s e, hat an funs 80 & are ea
| nj N
coed the amount actually necessary Tor tie current %
mands OF business. Tie payment OF mSh rates ~ iaefe
such balances atIracs al The spare capital rc
the country 10 the commercial ecuets while II ls s4
unemployed, but It Is drawn away FROM tie county,
where It is needed, 70 the buEes coLers where Tie raA
OF interest is higher The cities tcn eyne inlo cQiaPe.
ttlOn with the country, ana eoApel borrower. Ia th4
! country 10 pay higher rates
II has come 10 be recognized principle IN all legisiA
ton on the subject Of IeEehue, mat an iaTe lmpos.1
upon the manufacture of any article, are Intimately pas
By the consumer tax upon aLy DM1DcSs Is PAD q
bear TIER fa AID fair share Of tic burden q axaoss
| there point beyond which taxation becomes oup-ts
Justify Under tic imp elion that they al rcalkgi1
ordinate profits there s disposition 10 tx tEca IL DO
The federal taxaton nuourts 10 an average Of sbc1j
two or two aud ahaii per cent upon Tie ltnpoye4
shares are taxable by State authority. This Is done up0a
titg T per cent Sheh. ADDED 10 tie fisI txes makes
total tax Of from four to seven per cent upon the capital
Heretofore, the nigh premium rpon the gold rce.yedn
payment OF interest their bonds, together With lafgs
deposits growing ont OF the ebandaue, ~ paper money!
has enabled them pay this tax without reducing thts
dividends below the point Of ieir interest ou e capi.l
invested. Bat II y becoming more and more aral Iss
the banks pay their taxes and their expenses "thoat
reducing their profits below the amount tlnt you'd -
realized upuIi investment IN Government secur lea
The natural eject tins excessive taxation viii bs az
incentive 10 charge higher rates Of mtcpst IA ioai1
their money; and IN the end the business eonLulII
VIII pay tie tax IN the shape or uSy icit - q st'T
general and commendable disposition on te part OF Ia
alton They do not ask 90 be relieved from iih nor mas
ft is becoming evident IN several thai tss
tax imposed is Ia Of their ability TO pay eonSs'e
THE CURRENCY QUESTION
Ths subject before the puOc upon two rroposlton@
issue notes for circulation IVA orier that the HONethss
may issue us own notes N iher place n ,vr,,,, a,
compound interest notes. seventhirty notes aud I'VE
! twenty bonds. ns they MIXTURE AID become payable
The advocates OF the aforementioned scheme, regsl4
the first proposition as the preliminary step 10 the 80
coplshnent Of their own purposes aud Therefore ulS
Regarding the suggestion contained IN the propo'i'sS
first stated therefore, likely 10 be tic first demand \
en- parties VINO are dissatisfied with The present Stls 81
the currency 1t vii be necessary 10 examine the gIounes
In pursuing investigation, Il may be necessary -
touch upon questions seeming 10 trench upon the wd,y
dentay, and further than may be essential TO an Y
tengcut understanding on the currency qles non Wss
legitimate subject OF Inquiry ana eoiS4u'r" -
10 stats The first proposition fairly proposes 10 WITH
draw the circulation Of national bansS ID cISet It 80
| Government may occupy tie Whole hcid Inc 59,gpV3
or Datk notes 10 10 lcii-SSh ~ 0PVf'N9'SN " S'
| Tho s0GOOoOOO Of United States notes arc 10 b
used for the purchase Of United States bonds, when
are TO be Cancelled and thus nonnteres bearing uoies
are 10 be substituted Inter- tDcarug bonds, whereby
saving % be effected OF the amount OF interest thai
would Otherwise be paid upon the bonds 80 Cancelled .
IL Is claimed that by the payment 81 interest on tR9
bonds deposited by national banks with the Treasurer OF
the United States security for then circulating notes.
the Government pays the banks bonus for Issuing
sO06OOOOO OF currency which might have without ts
! bonus by issuing It's own notes. -.
This Is plausible proposition Many OF us ndyocates
arc honest IN the belief that by acting upon TINS the0ys
the Goyernnent would actually 100000 per sn
| num- and they are entitled 10 a fair hearing. - i.
The national banks authorized 70 issue SOooOoOo
currency The amount Of legal tenders subSttuteq
for TINS currency would purchase s2tIeOOOVv Oilss1
states bonds at Os which less than the present narKe
price Tile interest these bonds at SIX per cent wouA
| be s6.6es.O0. - ~, ,-,..,-.
II Tie bonds could he purchased al lO5 the legal tenders
would buy $685. 10000, the interest upon which Nouu "
ST,i420CO. $500 -, Ia ..
II tile bonds could be bought et par there would %
1900 600 GOO upon which the Interest would be sl'ov
The national banks however for the year 1906 actuaJ
| paid over Sl6OOO.OOO In taxes as follows; -
| To the Federal Government ...--.-.ssit3'sSs
To the states... '''i'''I