The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1881-12-29
How 10 Settle the Question.

How to Settle the Question.
Section 81 Of tho banking laws Of
March 8, 1854, reads "And be it fur
thcr enacted, That upon tho transfer
md delivery Of bonds to the Treasurer,
rs provided in the foregoing section, tho
association making the same shall be
entitled to receive from the Comptroller
OF tho Currency circulating notes Of
different denominations, in blank, reg
istercd and countcrsigncd as hereinafter
provided, equal in amount to 90 per
centum Of the current market value OF
the United States bonds SO transferred
and delivered, but not exceeding 30 per
centum Of the amount Of said bonds at
the par value thereof, il bearing inter-
est AT rate not less than 8 per centum
per annum and ut no time shall tho
total amount Of such notes, issued to
any such association, exceed the amount
at such time sctually paid in Of its cnpi-
tai stock" And in case the association
desires to close its business, o provision
is made in section ~ Of the Same law
for surrendcring its notes. The clause
III this section says: "The said ASSOC
ciation may pay over to the Treasurer
Of the United States the amount Of its
outstanding notes in the lawful money
Of the United States, and take up the
bonds which said association has on
deposit with the Treasurer for security
Of its circulating notes"
From these sections Of the banking
law We learn how the notes are put into
circulation and how they are taken out
Of circulation. To make tho matter
plain from tho Greenback standpoint
the following brief explanation is Of
fercd:
There are now in circulation in round
numbers Of the national-bank notes,
S3Gn, 100000. TO secure these notes
there are on deposit with the Comptrol-
lcr IT the Currency registered United
Safes bonds to the amount Of SiOO, ,O0O,-
OaO. Now We want to take up the $780,
O0O. 900 national. bank notes and issue in
their stead $3.50, OOO, 600 full legal-tcn-
der, misunderstanding treasury notes,
receivable for all debts, public and pri-
sate. And We want ut the same time to
pay off the 800, 100000 Of bonds that
OGlOuX W LAG Uuuhluk USSOSAulAOI6 tltut
are held rs security for their circulating
notes.
How can this exchange be made, tho
bonds paid aud no disturbance occur to
the business Of the country? Easy
enough. Amend tho law so as to au-
thorizc the Secretary Of the Treasury to
call i'll the national-hank notes and to
enable him to make settlement with the
banks 50 MS to secure justice to them and
to the people. TO illustrate the posi-
ton: Let the association having $780,
600 in bonds on deposit with the Comp
troller and who has received from him
according to the law 90 per cent. in ma
tional-bank notes, being $50, 900, return
the 500, 900, whereupon the Secretary will
issue to him S9o,0aO in legal-tendcr
treasury notes and then Issue an addi-
tional $40, 900, wlichwill be equal to the
bond deposited, whercnpon the bond
will be destroyed along with the nation-
al-bank notes, thus leaving in circula-
ton in place Of the national-bank notes
800, 900 treasury notes. Now apply this
practice to all Of the banking associa-
tions, and for the $3.50, o,OO0, 900 Of these
notes there were will be issued $780,
600. 1000 treasury notes, and then to get
rid Of the SiOo, 0OO, ,OCO bonds deposited
as security issue tho remaining lO per
cent. which will raise the full amount
to $400, ,00o, ,0oo-the face of the bonds
SO deposited, whereupon the Treasurer
will destroy the bonds along with tho
national bank notes, leaving i'll c.rcula-
ton instead Of the s36n, 0OD, 90 vi bank
notes Si0O. 900, ooO Of legal tenders.
This will be simple justice to all par
ties and relieve tho people oi the inter
est on the 800 oOo, 900 and put ont %
existence the national-bank monopoly,
than which there is not more danger
Gus monopoly in tho United States. Tho
only imitation that our measure contcm-
plates will be the $40, O0o, ,0,N, being the
10 per cent. reserved Ivy the Govern
ment when the national-bank notes were
issued. This plan gives to the bond
holder every dollar the people owe him,
and substitutes the peoples notes for the
bank notes that are now based Oh the
peoples bonds. II the bonds are good
the treasury notes certainly will he good.
In this article we have written upon the
basis Of 80 per cent. which the law nanes,
which would require S4oa, 100000 in
bonds to get s36p, 900. 900 III national
bank notes Ent the law, as tho reader
observes, provides for issuing 30 PC.
cent. gu the market value of the
! bonds if they draw less per cent.
than 5, and ut the presen. the dcp,s-
tied bonds aro drawing less per coat.
and are quoted IN the market ~ high Il:
lis. So that laah now a,pasitiag
SlOo, 900 can draw - per cent. OH
$ll5,OOO. which vii i've ssos.5N il,
| national bank notes for the 800. .00O
deposited. Thus the bank will get S3,
500 more than it deposits-in bonds, pro.
yi.ied that its capital stock is equal t.
that amount.
/ Plainly let tho banks surrender thcil
ir.1v, aiiu receive fionA ti.o ss....s,nrc, ,it
the face Of the bonds IN deposit MS So.
eurity for said notes, and etthe Govern
ment destroy the bank notes 50 surren
! drrel and the bonds On which the,
rested. This will pay that amount u
/ tie debt, stop tlls interest thereon
! abolish dangerous monopoly and sup
/ ply the coaGtry with iull legai-tendel
/ trensurv notethat cganothe depreeiated
because it will he receivable hy the Gov
j ,rancnt ~ we'll as hy the people inali
viluslly ior all debts. iaiianap.ti
1 Sun.