Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-05-24
HON. BARNETT GIBBS.
He Proposes a Substitute for
the Sub-Treasury Bill.
BANKS OF CIRCULATION.
Measure Submitted for Discussion-Any
Locality Can Remedy the Evil of
Tight Money Independent of
Any Financial Center.
Special to the Gazette.


| to a large audience here tonight. The
| speech was well received by all classes:
| Fellow Citizens OF Lancaster:
| l am here tonight 10 encourage the or
| ganization of Democratic club and by
| special request discuss the financial ques-
| ton. The Democratic party has got to be
| aggressive, even in Texas, where it has
such large majority. / believe the Demo
cratic party can expand and grow with the
| country and do more good than any third
party for the people. I will submit you
bill. or skeleton of one, for your con-
sideration. ! don't claim it is perfect, but
know that it is Democratic and seeks
needed results.
AN ACT TO ESTABLISH BANKS OF CIRCULA-
TON.
Section l. There shall be established and
chartered banks of circulation under the
provisions of the National bank act. so far
as applicable, and subject to the provisions
herein provided for as well as those in
said act contained not in conflict herewith.
Sec. , The incorporatOrs making
application to the comptroller of the cur
rency for legal tenders shall execute Joint
and several bond payable to the secretary
of the treasury. and his SUCCESSORS in Office,
for the amount of legal tenders to be
received. This bond shall bear 2 per cent
interest per annum and be secured by a
mortgage on agricultural lands on 4 basis
of one half their market value
Sec. 3. Persons in any locality apply
ing for charter and money for banking
shall publish this fact for thirty days before
application, in some local paper. together
with the amount of capital to be asked for,
and Il description and value of the agricult-
ural land upon which the mortgage is TO be
executed.
Sec t. After application is received, and
before charter is granted. the comptroller
of the currency, if there is no other valid
objection shall cause the said land to be
valued, under oath, by the postmaster at
county site, and two other postmasters
nearest the lands. He shall cause an alb
stract TO be made and title certified to by
the United States district attorney. or some
lawyer designated by the comptroller, all
expenses to be paid by applicants for char
ter.
Sec. ). Where the bond and security is
satisfactory, and as provided by law, it
shall be his duty to issue legal tender notes
to the amount of the bond and mortgage,
and grant charter for the operation of said
bank.
Sec. 6. Said bank notes issued by the
comptroller shall be legal tenders for all
debts and dues. public and private, and all
taxes, except import duties, and shall be
redeemable in coin or , per cent twenty
year United States bonds. at the option of
the government.
Sec. Z. When the law is fully complied
with. and the security satisfactory. the
amount of money shall be issued; provided,
however, that all kinds of money. including
gold and silver COIN put i'll circulation by
the government shall at no time exceed $50
per capita of the entire population, based
on the last preceding United States census.
Sec. s. When any one state shall have re-
ceived its pro rata of this per capita in
crease in the circulating medium from
present basis, it shall receive no more until
two years thereafter. when it may receive
its pro rata of the remainder not absorbed
by applications from other states entitled
to il.
Sec. g. Any land mortgaged to secure the
circulation may be alienated, subject to the
mortgage. under proper regulations as to
release and retirement of circulation.
Sec. 10. These banks of circulation may
loan money on farm products, or such other
security as they may deem proper.
WHY PRESENTED.
In presenting this bill l am not vain
enough to think | have solved the financial
question, but submit it for discussion as
being more reasonable and democratic than
either the national banking system as now
prevailing and perpetuated or the sub
| treasury scheme as proposed. The national
banking system preSuppOseS the ownership
of United States bonds, which is a scarce
ing system too restrictive. The sub-treas
ury bill comtemplates the government deal
ing with too many different individuals on
basis of too many different commodities
Of fluctuating values, and at too great eX-
penSe and without proper limitation on
the per capita circulation. This bill facili-
tates banking so that there can be no very
great squeeze of the market by a few men
in control of one or more money centers.
If there is enough money in circulation to
do the legitimate business of the country
there will be no applications made: if there
is not enough, then under this bill any To-
cality can remedy the evil Independent of
any financial center.
LIMIT.
Every night the comptroller knows how
much money of all kinds is in circulation,
and he can't exceed the limit of $50 per
capita which according to the experience
of prosperous nations is little enough and
safe enough.
SECURITY.
The government cannot be made more Sc
cure than it is with agricultural land, which
rarely depreciates and never except tenn
porariy English and other shrewd for
eign financiers are to-day loaning our mort
gage companies money at per cent on
your 10 per cent notes, secured by mort
gage on agricultural lands, showing their
confidence in this class of security at a
distance.
REDEMPTION.
The limit per capita, will hardly be
reached. and if there should be more money
in circulation than there is a demand for,
the circulation and charter will be surren-
dered for per cent bonds. 1t will adapt
itself to the business demands or the coun-
try, which can never be the case where we
have so exclusive and complicated system
as the present system of national banks.
Whenever notes issued by this government,
redeemable in its bonds or coin, at the gov
ernment's option, and receivable for all
debts and dues and limited in amount,
cease to be good among ourselves, il will be
when we have no confidence in the stability
of the government itself. The men who
get this money are the governments agents
for whatever profit there is over 2 per cent,
and the government is secured by the prop
erty of most certain value that exists, the
property is owned by SO many, that the
rate of interest cannot be made oppressive
by these banks of circulation or legitimate
business interests throttled by scarcity of
circulating medium.
l haven't gone into details. because I
merely present this bill as basis of discus
sion, and haven't prepared it to introduce
in, or run for congress on. Any common
Democrat is respectfully invited to give it
hell in his own way, if he thinks it needs it.
If any member Of congress ''eating the peo-
pies bread don't like it. | want him to
present one of his own. or let it alone, as he
is paid salary to get up bills to relieve the
people of the evils caused by neglect OF duty
by the government The people all over
this country have gotten to that stage where
thew Iar,oh AZ those leaders who scJisS ont,