Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1882-12-12

banks, notwithst ,nding the excessive taxation I'M
posed upon this business. nearly keep pace with
the advance In the population am wealth. OF tne
country, but the increase in the receipts aud pay.
ment OF banks anu banker-, made, by checks and
drafts shows the AZ urriiy OF the theory th.t the
money required for bu-ncs purposes should ear
liked proportion to tie population or 10 the we TN
OF the country. 1be same caus 5 which nave OBJ
Grated To bring about rapid reduction OF tie
public debt have ass tende 10 incre So the circu-
lsti medium. The arye imports of coin,in excess
OF imp rts, together with the pioducts OF the
mines, have Allied the channels Of circulation.
The circulation during the past year MS un.
doubtedly been much laiger than - any period
since the organization of the government The
y capita OF circulation Is larger, and II Is proba-
Ole That ~ proportion 10 wealth Is greater Than al
any previcu- time. II is undoubtedly large enough
IA supply the legitimate demands &c business, and
therc l. little tUub that the addition TO tho soin OF
the country since the resumption If specie pay
ments has been In advance ot the enlarged ne
uands OF business. There has been 70 complaint
uT scarcity OF mon-y which cannot probably bc
traced 20 those engaged In speculative business
and however great the aggregate OF the circulating
m'Siiutn may become, complaints OF scarcity VII
always be heard from those who desire rise In
prices No other nation economies the use OF ii>
circulating medium does this, and II Is probable
that but slight annual increase In the amount OF
national TANK notes outstanding Will hereafter be
required, provided that the exports OF coin are not
greaty In excess Of imports. ami the receipts iron
our Increased revenue IA excess of the requisite
reserve are kept Ia circulation and Lot boarded In
the Treasury.
The National Banking System.
The banks hold forty millions OF 81 per cents,
aud nearly one hundred and eighty millions OF
per CENTS, security Tor their circulation. III the
debt should hereafter continue 10 DC reduced al the
same rate as during the lase year, all OF these
bonds vii. he called for payment In les, than three
NeSrs, aud will he necessary for the banhs hold
ing such called bonds eiIher to deposit lawfnl
money for the purpose OF retiring two hundred
millions OF their yircuation. or TO purchase OIL
per cents, or Pacific Railway per cents, which
are " at high premium In the market.
The systems OF banking In operation previous TO
the establishment OF tine natiobal banking system.
AMI particularly those known as the charter anu
safety funu" systems have been brought forward
for discussion, and opinions have been expressed
that under the general restrictions of the national
banking y stem, or with increased Limitations,
would be advisable FOR Congress TO au hOrize the
Issue 81 circulating noie- based upon thc capital
The assets and the individual liability OF stock.
holders. without requiring, rs heretofore, the
actual deposit ot securities In The Treasury for
such issues. IL has been suggested II the circula.
lion issued DC considerably lees than the actual
capital paid up, and II the bilholder be entitled 10
"a Urst lien uDon all the assets OF the bank, and 10
the amount which may be collected upon the indi
viiual liability OF he shareholders, hst TIE people
would be abundantly secure IRON any loss upon
the circulation 81 issued 10y the banks.
- supplementary 20 this proposition, IL has also
been suggested that the banks be- required 10 hold
no; less than the minimum amount OF bond now
provided by law, which, estimated MT 70 exceed
one hundred millions OF dollars, and that In aSnt-
uon trey are required u deposit ten per
cent. upon their capital in coin with the ue2s-
urcr safety fund, and that they shall continue
receive { ,ch others notes In payment OF oOEga-
ton, due them. II Is ~ prohab that the stock
h'ldcT. 81 those banks which 90 not desire to re
circulation would be willing u continue business
upon tine condition that they should contribute -
ltrze an amount TO a fuud intended u insure The
puddle against the issues OF fraudulent or b'dly
managed Institutions. II j. suggested. however,
that the proposition would bo Improved II banks
desiring 10 Issue circulation De required 70 contrib
uJe such iuhd n percentage upon the Clrcuia.
ton Issued Instead OF percentage upon capital III
this fund. amounting 90, say thirty millions, Do
held in Uuitcd states thrvc per &c bouis instead
% On coin, and the losses from the circula-
% nsu lVen hanks lie small the interest la the
course Of n few Years II retained. ~ proposed,
would amount - a ou>iderablc SUM The large
fund deposit in the treasury for the purpose OF
the Loies OF national hanks now amounts
10 more than SIS 100000. IL 10 should bc thought
T. Npcdient 10 invest considerable portion OF THIS
fdnd In three per cent?. lhus releasing Il from The
treasury. The income might also be added L. the
safety fund.