Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-22
NATIONAL BANKS.
GOOD THINGS IF DEPRIVED OF
THEIR POWER TO DO EVIL.
They Can be Made the Means of Increas-
ing Permanently the Circulating Me-
dunn Without Radical Changes.
SAN ANGELO, TEX, June 10, 1891.

| SAN ANGELO, lex, June IL, 1881,
Editor Gazette.
am induced to offer suggestion to the
many already advanced by which plan
! will be developed which will afford a quite
| sufficient supply of the best money which
| the government is capable of making out
side of gold and silver. This plan, like
! some others, is based on the idea that a ma
| tional bank of some sort will be recognized
| as part of the fiscal machinery of the gov
ernment II is true that the party
has expressed itself against national
banks, but it seems to me that if the law
controlling national banks was so amended
| as to deprive it of the power to do evil and
| convert it into systom of good that it
would be good policy to do that If this
| cannot be done, then l agree with the ex-
pressions of the party. l have no interest
in national banks, except to make them,
while supported or sustained by the gov
eminent, benefit the people and not to in
jure them. How to do this is the intention
OF this suggestion.
If all the bonds could be paid off-and the
power to contract the currency removed,
and in lieu of that, they can be the means
of increasing permanently our circulating
medium without any radical changes
which might affect the business interests of
the country injuriously. l take it that the
people would prefer to continue them. OF
course, ] do not mean to favor the continue
ton of the national banks against the will
of the Democratic party, but propose an
amendment instead Of their abolition.
l would require all the national banks
now doing business to deposit with the
treasurer of the United States, say or 10
per cent per month of theta whole paid up
capital stock Tor whatever rate may be
thought to be the most Conservative until
a sum equal to the capital of each of the
banks had been deposited. would have
~ i To-, L.
out any distinction between the two metals
AS fast as these deposits are made, I would
require the marks to issue just as they now
issue their bank notes an amount of ma
tioual bank notes equal to the sum de-
posted with the treasurer of the United
States, which notes the government should
stand bound and pledged to redeem in the
same way and to the same extent as it now
secures the par value of the bank notes al
ready extant. At the same time or times
would require the secretary of the treasury
to pay off and cancel the government bonds
to the full extent of the deposit so made by
the banks, which process should continue
monthly until all the bonds of the govern
ment were fully redeemed, preferring,
however, the redemption possibly of the
bones held by foreign holders, and this onfy
because those which are on deposit should
be kept so and cancelled only as the present
bank issue is redeemed by the government
in due course. OF course the present out
standing bank issue would have to be sup
planted and not duplicated by the new
issue, and hence the suggestion of prefer
ence in tho payment of the bonds.
What would l accomplish by this plan2
1. would pay off and cancel the entire
Understanding bond debt of the govern
ment in less than ten years, and l would do
it with gold and silver and greenbacks q
mean those already redeemable in gold,
and thus relieve the people of any further
interest account in that regard
2. would at the same time aed by this
means put into circulation over $525 600. 900
of bank note circulation secured by the
government in excess of what we now have.
and at the same time indemnify the gov
eminent against any loss by the antecedent
daposit by the banks of gold and silver.
BY which same act would put it out of
the power Of the nrtional banks to contract
the currency and thus depress values, all
of which would be accomplished without
affecting the business interest of the coun-
try injuriously. Because the main features
of the present banking law would not be
changed in the matter Of detail Why do 1
say could increase the present bank note
circulation as statedl Answer: That issue,
now out by the national banks now doing
business, amounts IN round numbers t.