Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-25
NATIONAL BANKS.
GOOD THINGS IF DEPRIVED OF
THEIR POWER TO DO EVIL.
ing Permanently the Circulating Me-
dunn without Radical Changes.
SAN ANGELO, TEX, June 10, 1891.

SAN ANGELO, TEX, June b. 1891.
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 ma
tional bank of some sort will be recognized
as part of the fiscal machinery of the gov
erpment. 1t is true that the party
has expressed itself against national
banks, but il 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 a systom of good that it
would be good policy TO do that. If this
cannot be done, then [ agree with the ex-
pressions of the party. 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
iure 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
lut country luJuilouSlSt bdhc III IndG Olo
people would prefer to continue them. OF
course, l 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
row doing business to deposit with the
treasurer of the United States, say or 10
per cent per month of their 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
these deposits made in gold or silver with
out any distinction between the two metals.
AS fast as these deposits are made, would
require the banks to issue just as they now
issue their bank notes an amount of ma
tional 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
bonds held by foreign holders, and this only
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 the payment of the bonds.
What would l accomplish by this plan9
/. would pay off and cancel the entire
interest-bearing bond debt of the govern
ment in less than ten years, and would do
It with gold and silver and greenbacks Il
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 and by this
means put into circulation over S525, 000, 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
deposit by the banks of gold and silver.
BY which same act l would put it out of
the power of the national 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 /
say could increase the present bank note
circulation as stated9 Answer: That issue,
now out by the national banks now doing
business, amounts in round numbers to
about $l25, 100000. The total existing ma
tional bank stock is about $3.50, 000, 600. If,
therefore, these banks were required to
issue notes TO the full amount of their
paid-up stock, as would be done under my
idea, the bank note circulation would be
the latter sum instead of the former one
How would the banks be able to get the
gold or silverl The answer is, that they
would be only required to deposit small
per cent per month and this sum would
return to the channels of trade under the
bond purchase system, before the next de-
post would be made. In fact, only small
portion of these deposits would be made
in actual gold and silver, but largely go
into the treasury and channels of trade
under a system of exchange. Has the gov
eminent enough gold or silver to pay all
the bonds2 Answer: Such as are payable
in coin would be paid monthly and deposits
would be made to make the next purchase
before it would be needed for that pur-
pose. There has occurred to the writer
one obstacle and it consists in the fact that
these issues after the bonds are all paid
might in the course of a few years grow
so large, by the increase of the demand for
banks, that it might put the government
credit on strain to carry it. This objec-
ton is partially met by the past expert
ence of the government in reference to
greenback issue. This experience has
shown us that with si0o. OO0. 600 of gold
issue to redeem about $3.50, 000, 900 of green
back, that there is not an average Of more
than $50 per annum demanded by
the holders Of the greenbacks, SO
that to a large extent this scheme
will find its continued practicability in the
confidence Of the stability OF the govern
ment itself.
Added to this plan, would, of course
coin all the gold and silver free which our
mines should be found to produce. At the
same time, would reduce tile tariff to
strictly revenue basis, and l would so
change and repeal the present laws, by
which would reduce the expenses of the
government, to basis which would come
strictly under the head of an Economical
administration of the government" BY
this means, believe that at least two hun
dred millions of money could be kept in cir
culp- ion and in the pockets Of the people,
which sun, added to tho national bank in