St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-10-02
"A PLAN FOR A PERMANENT
BANK SYSTEM

With the annual movement of our
great staples, cotton, corn and wheat.
from the field 10 the market of export.
comes ever complaint of the Infiexi-
bility of our monetary system, which
gives US scarcity when plenty is needed
and dangerous surplus when the de-
mand for money is light. In addition
to this, we have the perennial cry of the
deluding demagogue and the deluded
ignoramus reSounding in our ears at all
times for more money" Numberless
have been the plans suggested for this,
ranging from the certificates of the con-
solidated banks down to the sub-treas-
ury scheme, and taking in the fatism of
the greenback craze; but congress. with
whom the matter rests, has shown
singular incapacity to deal with the
problem, singular only when we reflect
with what complacent self-suficing
wisdom it regulates and directs the
multifarious details of trade.
The movements of the crops and the
early assembling of newly chosen
congress combine to make opportune
the contribution to the discussion made
by Hon. M. ID. HARTER, member of
the Fifteenth Ohio district in the fifty
second congress, in the current number
Of the Forum, but the merit of mere
timeliness it shares with the harum-
searnm plan for banking system sub
mitted to the Georgia legislature by ex-
United States Senator NORWOOD. But
mere the similarity ends. Mr. HARTER's
plan is that of man of wide experience
in business affairs, who has given to the
problem thought and study; that of
Mr.. NoRWooD's is that of a man who
has sought for an irrideScent scheme
which would attract notoriety. Mr..
HARTER evidently aims to provide
means by which the volume of the cur
rency would expand and shrink, not at
the caprice of congressional will. but in
response to the demand of commerce:
one which would increase when its use
was profitable and withdraw under the
impulse of self-interst when unremu-
nerative. After noticing the various
methods proposed he submits his plan,
which may be described as the present
national banking system with such
changes as will widen its scope and
".
With this as his basis he would make
all state, city and railroad bonds the Sc
curity for note issues as we'll as govern
ment bonds. The eligible list of such
securities would he restricted to those
registered and whose principal and in
terest are payable in gold; to those
which have been listed for five years
on some stock exchange; to those
which have never detaulted in interest,
or have sold within three years of de-
post, for less than per cent above
par; to state bonds representing not
over 81 per capita of debt; to
county bonds of not mole than 81
and municipal bonds of not over IS per
capita; to railroad bonds secured by
mortgage. Banks would be limited to
not more than 20 per cent of the bonds
of any one state, city or road, and when
any bonds sold for less than los for
thirty consecutive days they should be
replaced with others. Bonds of roads
passing dividends must be substituted
with others. He makes it felony for
any officer of road. whose bonds are
used as deposit, to make false state
ment of its financial condition. A ma
tional tax of 2 per cent yearly would be
laid on the circulation. An important,
possibly the most important, feature of
his plan would be the repeal of the
present federal tax OH the issues of state
banks, which would permit of their
restoration to the financial system
of the country, safe-guarded, however.
by the provisions of the plan for the
security of their notes and also by a
state guarantee of them. They would
pay the same federal tax as the nation
ais, but the state would control the
amount of the issue of its banks, which
would be redeemable only over their
! own counters, and. like the nationals,