The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1882-05-20
h.NCE AND COTTON.
FINANCIAL.

FINANCIAL.
-, sro the Tribune Of New York, !
b. Una s,n.t ID would be well for the &atlonal
Se.,t 10 provide permanent basis Tor
n.nls,io of national banks by adop ing
o. all the states ana municipalities OF
49, Tha Public very warmly approves
lssh. and urges its adoption. The
NJ 81, mat the arrangement snail b. vol
go ~ I'M the part Of the indebted COM
IW v"0 Ia order TO make II appear that the
saea nrac icable, the Public outlines a
r. = orr,celure substantially as follows,
y - must pass an act authorizing the
b aIocal debt consOls," bearing, say B.
a ;nterest creating board To negotiate
,s'temeuts OF depG pi9'iulhS lnu,
Ms,ieS which have been guilty
rassnuasarlble conduct in dealing with their
nan not be admitted to the benefits of
r.l'ssernentS. STIMULATING that in case
n,,y fails 10 rails. the money To pay in
1snsn,oyilo for the ultimate eXtingtish.
~ NJ deb, the national government shall
Nv, necessary taxes by its own agents;
~ .,sining various other pr visions which
tsaal b. stated here
s,rmening on the above the Chicago
w, rhe idea, it will be seen is that
Ssr,ties shall pay their own debts
WI and interest but tina they s&all ut the
sme have the full benefit Of the superior
Ri,effhc natiOua government the latter be-
- respOnsible 10 the individual creditors,
lIsdnc the communities responsible 10 It.
IA community would be forced to come
Reinforcement but IL is assumed that most
Ssm would glsdlv do So if they meant
ssr their deots at all. 50 as to get
tsnedt of the low rate o. inter, st
t.Aeh the national government is ableto Dor
,,uey The proposal is to make the con-
mn for long Time say a hundred years,
noh apy one local debt represented by them
4 IN maid in five years or less. No matter
Am any particular debt may be dis
,-,p1 The cOnsOs will be permanent, being
k-,si AGAINST new local debt when an old one
f,,A This characteristic of perman ncy
I'm ofcourSe, render the COnSols very deSira-
Lmsn investment for trust funds not less
kma. security for ban circulation 1t is be-
fssi that local debts To the amount of fully
kMa (NOOO wOuli be converted into c0nsOls If
4. opportunity were offered, and that the
[rnlt would increase with the growth of the
{rrlry. so as always to form an adequate basis
bank CiTcuiall0h.
ifl,re is not much reason to doubt that this
ks,me can be made to work so us 10 accomplish
q main purpose Of Us advocates, provided con-
[ssean De induced to 10 the necessary legis-
In. Once enact law like tina which has
ks1Oulned and communities will be pretty
lusly because any community which would
{awoald hGdly be able TO bOrr on favor
~ terms, unless II had II well-establshed
Nm The great difficulty will be TO induce con-
IN to DO the leglslating The REPRESENT
ns Of the communities that owe large debts
klare least whiting 10 pay will resist any pro-
ksilyolyng further and special excrci of
N taxing power by the national government.
|lsde from their strong aversion to The exercise
National authority, they will resist the adOp-
I'M the proposed measure because its effect
Mould betOmaGe it impossible for them to borrow
Without the permission of the national govern
htn lfany indebted community should refuse
|WHeglect to come into the arrangement, II
houi have difficulty ia borrowing. nd if II
kAOgd come into the arrangement. II could not
Enrease lis indebtedness hereunder without the
|ulen Of the nationa, government. Those
|pnmunlies that adhere most tenaciously TO
hanli.nationalism will not care to have a ma.
Elal board Of commissioners clothed wi II pow
Epppyent them from borrowing money, and
|n6e communities are able TO exert a good zeal
khAuenCe over n tional legislation The op-
sion Of such communities to auy curtailment
EAeir power to borrow money will probably be
hmeul enough 10 defeat the project which the
|Plbiic 80 strupgly advocates.
us true that the prospect Is that unless some
kfinse is nh de In the existing law, the national
Banking system must come To an end at no We ~
|tsAnt day should the process of debt reduc-
Eou continue at the same rate as that which has
(sen maintained for the past ten months, the
PISTOL the 3 IL per cents would be redeemed
Flhln three years. Then only the 4 IL and 4
Preehk would be available To secure circula
IN, and the ice of those bonds would very
Eiey be SO hig that bankers would surrender
Eafclrulat on rather than buy them, the law
esnsining as is, But as the Times has NOR,
hAn once pointed out it is possible Il
Ensnd the law so that it will pay L
PIE out circulation based on per cents
N matter what they may be worth in til,
lNSel All thai is necessary Is TO provide fO
lessue OF circulation up to a certaiu percent
geo The market value of the bonds instead o
tsppns at 20 per cent Of the face value, as II
resent Ii ther is any serious objection L
h4Ng notes TO the amount of 81 per cent. 9th,
aNSt value OF the bonds, il has not yet beer
sNught 10 the notice OF the Times. If there Il
ssae, there is nothing 10 prevent the perpetua
10Y OF national bank circulation for u number o
}eMs yel WI bout the national adoption of lOCa
Tssos' indeed, 1t may be perp0tunted indeti
is |, F Without resortiDg to that eXpcdient since
Y Is nol absolutely necessary that circulation
avla be based on bonds, 1t may be based OF
0PlM and made tolerably secure.
DALLAS EXCHANGE AND COIN.
= y Ssuying. Selling Buying. Selling
N n l. TX. 3iGSparGs ST Louis lsQDI Para
eeI a.. '' eGA Par@k N. o. e.. .h@A Para !
Wy Para Z Houston..h Par@i
- 'NN1in's ,, to4 discount. Sterlipl
lnde 30 y"x;csm dnIlors soc,
AsnVA ,lo" Mexican quarters l5ct