Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-08-04

may be reduced. By issuing land mort
cages upon a certain traction of the valua
tion of agricultural land, in place of tn
present bond system, the problem would
solved. The borrower, paying a small pc
centum per annum, would thus give a cir
culation self-regulating in volume; wouh
place the Material wnere most needed, viz.
in the Middle and Western States ant
South, and would stimulate manufacture
and agriculture"
What kind of system would you ther
advise in place of the present banking sys
TEN. to conform with this New Idea?"
Before replying to that question, let m,
first state the distinction between Treasury
and a Bank. A Treasury receives and pays
out money; Bank loans money and fur.
nishes accommodations to its patrons accord
ing to its rules. Now, then, to convey ar
Ineligible understanding of how the New
Idea may be worked out. and how nation.
al banking system in accordance with il
may be established, would advocate some
such plan as this:
NATIONS BANK CONTEMPLATED.
'First-The enactment bv Congress of such
laws as will provide for the founding and
establishing of the Nations Bank of the
United States of America, to be branch of
/ the United States Treasury. to be a bank OF
issue. and to be established at the Capital
of the United States. This Nations Bank
shall have through Congress the control of
the issues and loans of the Government; it
shah be the parent institution to system
Of banks and currency to be established
throughout the domain of the United States
of America.
"Second-That laws, or a system of laws,
shall be enacted creating and governing the
same, and which shall provide for the issu-
ing of national currency to banking insti-
tutons which may be established within
the bounds of any State or province within
the domain OF the United States, in accord
ance with the United States laws so
enacted, authorizing, permitting and govern
ing the same.
"Third-That the conditions of such
United States laws shall be such as will
regulate the management and protect the
issue of ofcurrency sufficiently and fully, and
guarantee the redemption of the same to the
holders.
"Fourth-That such laws shall be made
allowing any State or province within the
domain Of the United States, that shall have
enacted such laws within those States or
provinces con forming with the requirements
of the general United States laws, the right
TO avail themselves of the privileges offered
by the general law to such chartered institu-
tions.
"Fifth-That each State or province shall
be held responsible tor any losses arising
from currency loaned to such institutions
within its bounds, according to law.
"Sixth-That this currency be issued to
such banking institutions upon one-third
the agricultural value of land, upon a
mortgage executed against registered land
held by associated members of such banking
institutions, upon one-third of its gold
value, to be unincnmbered and TO be first
lien against it. Such loans shall be made
for term of 33H years, and in payment of
whlcn such currency, or gold, or silver
bullion at its gold value, of at least per
cent per annum be required, and when
fully and regularly paid for that length of
time (that is TO say, 1875 annual payments
OF per cent each) shall constitute iuil pay
ment Tor debt and interest, and shall cancel
the mortgage obligation so held by the ma
tion's bank against the sub-banking insti-
tutions.
NO TAX ON CIRCULATION.
"Seventh-That no tax upon the circula-
tion shall be required, so long as there are
revenues from custom duties on imports.
against which to defray the expenses OF con-
ducting the national Institution.
"Eighth-That the institutions within the
States and provinces shall be composed only
Of owners of agricultural land, who shall
have jointly organized under a charter
granted by their State and be held indi-
and Jointly. liable for anv losses
which may occur to the Government BY
of fraud or detective title, or error,
or wrong valuation OF land upon which
money may have been loaned to them, and
Ior all sums obtained by them until paid.
"Ninth-That district examiners of titles |
and appraisers be appointed. and a schedule |
of fees for same be fixed, to be paid by the |
organizers OF said institutions for the ex-
animation OF titles, appraisements and GER
.ifcates; that every safeguard possible be
placed around the institutions to protect the
as we'll as the depositors and
:.
'Tenth-That the currency be made a
egal tender for all debts, taxes and dues ex-
,ept custom duties and interest upon the
public debt; that the further coinage of the
liver dollar be discontinued: that the
,onded debt of the United States be paid
ind cancelled as rapidly as possible and
practicable"
Sation's Bank, as you describe it, open I'D
venues Tor speculative purposes in many
''Not at all. The effect would be to fur
ish working capital throughout the coun-
ry and in the West and South, where most
eeded and where the most safe, the most
rohtable fields for loans are now found
y many OF the leading insurance and trust
ompanies Of the present. The Nations
Sank plan would satisfy the demands that
re being made for banking system in con-
ection with the present postal system. Its
enehcial effects may be imagined from the
esults which have come from the economi-
al and we'll conducted building and loan
now almost innumerable
nroughou. many parts of the country.
NO STRINGENcY OF MONEY.
IA stringency of money would not be
-eated; the volume of currency would be
and self-aojusting, and not
lbject to continual tinkering by Congress;
lie obligations against the securities held
v the Government would be constantly
rowing less and safer by small annual paw
ents, instead of increasing. The present
apital would be met where it stands, taking
othing from it. allowing holders of it to
nploy it, like other commodities, TO the
est advantage possible in the line OF pro-
uction. the result would be a greater
sneral good fortune, and larger share of
lie necessaries and comforts of life falling
the share of each individual. Domestic
I'd national commerce and exchanges upon
gold basis may be performed without call
g into actual use single dollars worth,
,ssibly, thus demon etizIng gold to that ex-
nt Gold and silver may be forced into
e arts. where they belong, instead of lying
lie in vaults for ages Land, isl fixed
curity: il prodfces and Yields as much /