The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1890-01-07
Mr.. KNOX HAS A SCHEME
How He Proposes to Settle the Silver
Question Satisfactorily
silver H"l,i"n as - Ba.i> for Securing the
Payment of National bank Notes
Ills Hiil VIII soon lie Intro
duced In Congress.

- I'm 'aAhh- ~ 'fhhA ~ Naf'' f"h'
prepared a bill which will bc introduced
in congress-, the principal object of which
is tn provide for the use of silver bullion
a. n basis for national bank circulation.
The bull prov i,ies after the passage. of the
act that every national bank he authori-
zed Ia issue circulating notes in an
amount not exceeding - per cent. of the
banks capital stock. Not less than ~
per cent. Of their circulation shall bc Sc
secured 10y United States bonds; or at the
option of each bank one-half of said 30
per cent. may n" secured 10y
n deposit with tn" treasurer under
regulations to- bc prescribed by the secre-
tary Of the treasury of gold coin. or bull
lion. or silver bullion, at the current mar
kct price, Whenever tia" market or cash
value of bullion and United States bonds
deposited Is reduced below the amount of
circtilation, the comptr"llrr OF CURRENCY
may demand and receive tho amount of
such depreciation in other bullion, or in
gold or silver coin. To- Ice deposited with
the treasurer as long as such depreciation
shall continue; ar til" amount of circulat-
ing NOTES of such bank may Ice reduced 10y
charging The excess of circulation To the
redemption fund.
An account to br designated 1.-THE ma
tional bank safety fund il authorized to
he opened IN ti" trrasurcr's hooks 10y re-
ducing the amount Of United States notes
now outstanding - ,5Dp,pp and by rr,luc-
ing the national bank redemption fund
the same amount and crcditiug Si,opo,pp
Ia Ill. safety fund IT, said fund. To said
fund shall bc added a duty of ouc-half Of
one per cent. each half year upon the
average amount of national bank notes in
| circulation.
If amy national bank becomes ,n~soiv.nt
and any Of its circulating notes remain
liability of shareholders * exhausted, such
circulating notes shall bc redeemed. can
celled and destroyed. aud the amount
charged to the safety fund.
Mr.. Knox in explaining the provisions
of his bill said il is estimated that lost and
unrctleemcd national bank notes
| amounted tp at least one I,er cont. dur
ing every ~ years but only ON. half of the
amounted estimated IL IL" lost * to b"
pias ell To the credit of the safety fund Ia
cover the ID per cent of circulation not
secured 10y bonds or bullion. Ii ~ not
ton should bc used for III" safety fund il
serious objections ar" made. ns I'll" tax on
circulation. which amounted in 1ss' to
Sl,4lo.SD. il abundant for creating and
maintaining sufficient funds for the absn-
lutte redemption Of - per cent. Of all is
sues of all national banks. The comp
troller's report for lS>' shows that during,
th" last - years the total circulation of
insoissnt bank notes each year on au
would b. ~Siso.nn. The tax On circulation,
last year WAS nearly eight times the
amount of safety fluid required.
III the circulation IL Increased the tar
will he corrsSpondin.,ly increased so tina,
the amount to he, added annually to til,
safety fund from IL. il without doub,
abundantly sufficient to provide for thirt.
per cent of all the insol.vut banks of tn,
country. The profit on circulation under
would he sufficient tn induce many. IL net
all smaller national banks to deposit
silver bullion and take ont %circuiat
ing notes. Mr.. Knot estimate.
that at the end of the mex
seventy years or at the date al
payment OF four per cent. bonds ia 1907
the safety fund would have accumulated
at least S2o,Eyb.Un. So that from tina
time onward "a sufficient amount OF ma
tional bank circulation would remain per
mancntly in existence well secured u,
gold ar silver bullion and sufficient,
profitable to make the present amount %
United States notes To respond To- the de
mand of the business Of the country. I
would also give banks i'm the west as wei
as east VIA have confidence m I'll. futur,
value of silver AN opportunity to invest i,
that metal. and he believed such invest
ments would Inc made for the next tir,'
years equal at least Ia twenty millions a
dollars annually. and thus relieve tn
. treasury from excessive purchases.