Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1882-03-21
FINANCE AND TRADE,
Condition of the Markets Here and
Elsewhere.
Money 4a4 10 Per Cent. - Governments
Steady-Stocks Higher-flour Active
Wheat Higher Provisions
Quiet.
NATIONAL, BANKS AND NATIONAL DEBT.

At the last meeting % the American
Bankers Association Mr.. Geo. A. Butler
read paper setting forth his views on
the above subject. As this plan Is now
attracting some attention, the substance
of il is here submitted for the considera-
ton of those who are accustomed TO
bestow thought upon such matters;
After stating with much clearness ana
force some OF the chief objections urged
against a circulation bottomed on bonds,
Mr.. Butler proceeds to say:
az Of the notes be issued to the banks
as now, thus preventing overissue; limit
the amount to the amount Of capital, or
percentage of it, the notes to he
first lien on all the assets OF the banks,
the stockholders, as now, liable to the
amount of stock held by them. Lay
tax OF say per cent. on the circulation
as a safety fund, out of which the notes
Ofinsolvent banks should be redeemed
in case resort to the other means should
prove insufficient; the amount raised IN
this manner to be invested in govern
ment bonds, the interest of which might
cease, thus reducing year by year the
interest charges of the government,
while it would constitute fund which
would in time equal the circulation OF
the banks.
''Prohibit all notes below SO, and es-
tablish at New York a bureau of re-
demptiOn, and require each bank to
keep at this agency say Is per cent. of
its circulation. This would form a great
central reserve of coin upon which
drain might work without causing
alarm. An outflow would thus be felt
by all the banks of the country, giving
them timely warning that the country
had been Overtrading, and that they
should 60 more carefully for awhile. The
prohibition of small notes would cause q
large amount of coin to circulate, which
would make a large general reserve from
which the banks could draw to replen-
ish the central reserve. To meet the
OppOsition to the retirement of the small
notes, the banks might issue, in addi-
ton to their regular circulation, small
notes, to be wholly covered by COIN"
This is the substance of the plan. Its
most marked characteristic is the care
full provision which it makes for the
security of the note holder. The issues
are to be limited in every case to the
amount of paid up capital, or percent
age of it, and are to be a first lien on all
the assets of the bank, the stockholders
being liable to the amount of their capt.
tai and an equal amount in addition
thereto. To the same end, and to maln-
tain large stock ofcOin in the country,
the issue of notes below ten dol
lars is to be prohibited. In addition
to this there is to be a central redemp-
ton fund OF, say, Is per cent. in
coin-nOt 5per cent. in greenbackS, as
at prcsent-and this fund is to be held
at the financial center, and not away
one side, as now. OF course, the banks
will also be required to redeem their
own notes at their own counters, as
well as 1.-THE redemption agency. And
finally, to fortify the note holder beyond
possibility of loss, there is to be tax of,
say, per cent. for the establishment of
fund for the redemption of any re-
mander of notes unredeemed by in
solvent banks. Certainly no greater
security for the note holder could be de-
sired, and the currency under this plan
would doubtless be more responsive to
the demands of trade than it ever can
be under the existing plan.