Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-11-17
THURSDAY. NOVEMBER II. 1892.
The currency Of the ruture-Again.

readers know what the banking scheme is
which Mr.. HARrER, of Ohio. proposes 70
substitute for the existing banking system.
That scheme Is better than any other
which has come under our notice. and, II
our law makers cannot discover OF invent
o still better one, will be liable 10 become
the law of the land. But surely the states
men of this country will not have TO cell
upop the advocates of even the HARTER
banking system to take charge OF the
national finances. Those advocates IN
doubtedly believe that who drives tat
oxen should himself be fat" but it is not
likely that Congress will turn over its busi-
ness to them.
Let US remark once more that we shall
have 20 choose between the present bank
ing 81 stem and any new one that may be
proposed; aud as the 10 per cent. tax on
State-bank notes was what made the ex-
listing banking system q success, II may be
set down as already proved that the repeal
of that tax will abolish this system. There
Is such difference between the laws reeu-
lating our national banks and providing
currency for the people and the schemes
which the friends OF State banks propose
So substitute that she two systems of bank
ing cannot ooexist.
Again: The advocates of the return to
che old Ststs-bank system tell us in one
breath that under the new system the cur
rency will DO localized or denationalized
aud refuse to circulate away from the
place where 10 Is issued, and In the next
breath Us sure US that such q system will
operate favorsbly in the interests OF the
people ut large. The masses OF the com
munity will not appreciate local money.
They want real money. Thew do not want
O currency that will not circulate freelv
everywhere within the broad limits OF this
land. They do not desire that GRFsHA%s
law shall be repealed. In fact, they know
that ii cannot be repealed.
In a speech which Mr.. HARTER made in
California last fall he said
"There would also be In St1te-bank circula-
ton a positive. distinct gain 10 the communities
IN which IL would be issued. refer TO the fact
that circulation would incline 10 Be local rather
1aaa genera"
This feature, added Mr.. HABTER. could
not be gwen 10 the volume Of minted coin
or any quantity of legal-tender notes, be-
cause OF the tendency of both TO how
% 10 the greq, money centres" Yes, even Mr..
HARrER recommend, a system which he
coafesses, or rather boasts, would cause
the currency to flow away from the money
centres instead OF towards them. Why
would Mr.. HARrER's currency flow away
from the money centres. and UNCLE SANS
to the money ceres? There can be bat
one answer. The reason is 10 be found in
the fact that the money centres prefer
good currency to bad.
Our space Is 80 circumscribed that we
cannot say much more just now. There
will be abundant opportunity, however,
Cor the people to study the question We
have high opinion Of Mr. HARrER, ss We
have heretofore said. He is student.
His fault Is that he thinks "he knows it
all" and consequently he is not heard with
that respectful attention which should be
accorded to him. His banking system Is,
we repeat. the best new one we have seen
hitherto. Here II Is in full. IL is the only
copy of his bill which we have seen:
a BILL TO PROVIDE FOR THE ISSUE OF CIRcU-
IkrsG NOrEs or NATIONAL BANKING AssocIA-
IIoSs UPoS SECURITIES OTHER THAN UNITED
srArss Bosps, AND FOR THs TAXATION on TIE
CIRCULATING NoTEs OF NATIONAL AND STATE
BANKS, AND FOR oTHER PURPOSES
BE IL enacted by the Senate and House Of Repre-
scn,a,ires of the United States Of ADerfca in Con-
gre assembled, That the United States shall not
hereafter guarantee the payment OF circulating
Section Q. That there shall be no iimit 10 the
amount Of circulating notes which any national
banking association may issue. except that such
potes sh1n at no time exceed 30 per csntum OK
She par va Of the bonds deposited to secure
the same by such association
Section a. That every national banking asso-
too, after the same has been fully organized,
may at all times have on hand. In the custody of
ths Comptroller Of the Currency, such amount
OF its circulating notes ready for issue upon the
noposit Of the securities as hereinafter pro-
Vided, with the Treasurer Of the United States.
% shall not at any tims exceed tho par value OF
Cts paid-up capital stock.
Section 4. That no State bank, State banking
Association, or banker expressly authorized I'M
der state statute 10 issue circulating notes shall
pay any Federal or United States tax upon such
potes, bul every national banking association
shall pay tax upon the circulating notes issued
by IL and In circulation at the rate Of one NTH OF
per censam per annum upon the average
amount OF tho same, not exceeding 90 per
centIm Of the capital stock actually paid up In
cash; per centum per annum upon the aver
age amount Of such notes In excess Of 90 per
rentum and not exceeding $50 pes centum OF
baid capital, and 10 per contum upon tho aver
nge amount OF such notes In excess OF $50 per
fentum OF said capital Such taxes shall be
payable semi-annually, ana shall DO collected
BY the intcrnsirevenue collectors OF the United
States.
Section 8. That In addition 10 the United
States bon is nov required By Law 10 be deposited
with the Treasurer Of the United States TO So
cure the circulating notes OF national banking
associations, the Comptroller Of the Currency 10
hereby authorized ana required 10 accept regis
tered bonds issued By any railroad corporation
Or CITY IN the United states, and deposit the
pane with the Treasurer OF the United States In
behalf Of any such association az security for It's
gincuissing notes, sahjecs 10 the following TO
btrictiops:
1. The principal aud interest OF ali such bonds
shall, in expressed terms. be payable In gold
coin Of fhs United States
2. All such bonds must have been continuous
" listed upon sons regular stock exchange 10
eatedin city Of the United ststes having popu-
tstion Of mot less than 5oo 600, for at least ave
gesrs
,. Nobond shah be accepted upon which pay
mont OF interest," has at any time been IN de-
fault, or vhich at any time within shroe years
prior 10 the date Of lis offer for acceptanoe has
sold publicly upon any stock exchange whore Il
wa ibsed Tor less than los cents on the dollar
OF 80 face value
4. No bond shall DO accepted n the total tar
Jew OF the city Issuing Is escesds per eensum
per annum.
0. No railroad bond rct regularly secured By
portgage upoa the road-bsd ana TRACK shall b
accepted
q. No association shah be psrmittsd 70 have
more than 10 per csnsum Of its bonds on de-
pesit Of the issusof any enc railroad corporation
tr city.
2. Whenever any class Of boods on deposit has
been publicly sold beiov per toe period OF
thirty days spen any sleek sxchaass whore
listed the Comptroller shah require bond 70 DO
substituted which win 10 al respects meet the
Bsquirsnsns 81 this 20.
& Jhss whnnsvsr spy fatiroai corporation
bhson ~ paying d1udeads apcn ~ stock whss