Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1892-12-10

another condition was that all deposi-
tory banks should make daily reports
TO their respective clearing houses, and
the clearing houses to the secretary of
the treasury. Any loss TO the govern
ment from false returns from any bank
or from depre citation of the bonds de
posted should be made good by the
clearing house to which that bank be-
longs All drafts for government money
shall be made directly on the banks.
If any bank fails to pay draft CT de-
mand, auy other national bank
may at Its discretion do so, and shall
then be reimbursed on presentation OF
the draft with proof of its dishonor,
for the principal, costs and interest. by
the clearing house Of the department
in which the defaulting bank is siruat-
cd. All government money shall be de
posted in the banks in accordance with
the foregoing provisions. except the
$10O.000,O00 of gold commonly known
as the greenback reserve, and the gold
or silver bullion on deposit to secure
coin or bullion certificates
The following provisions for elastic
city of the currency are suggested:
Circulating notes should be issued on
deposit ut Washington Of such bonds as
have already been described, or on de
post of gold or Of gold and bonds, and
the amount Of issue should be the par
value of the deposit. In a crisis each
| bank should be allowed to expand its
issue of notes % per cent. over the par
value Of the bonds deposited, provided
the bonds do not fall below par on ac-
count of the crisis, and each bank should
also be allowed to deposit gold coin or
bullion as a basis for the further issue
of not y in the same ratio, to be held
on special deposit at its clearing house
for the purpose Of redemption. In or
der to avoid delay in a crisis each bank
should at all times keep at its clearing
house on special deposit, a certain
amount of extra notes. These notes
should be sealed away under the seal
of n United States inspector, and an
account of them should at all times be
kept with the treasurer of the United
States.
Permission to use these extra notes
for the purpose of the expansion just
spoken of must be secured from the
secretary of the treasury" said Prof.
Kinley, "and the secretary shall give
such permission under the following
circumstances and then only: He must
have received from the clearing house
notification of the necessary deposit,
and the ratio Of discount ON call loans
in New York city must have reached
eight per cent. All net profit over one
per cent. accTuing from this extra issue
of notes must be credited to the gov
eminent No bank shall discount below
eight per cent. while any notes of this
extra issue are outstanding, and any
bank may offer a premium on such
notes in order to call them in. If any
of them are outstanding at the end
of one month the bank may be requir-
ed at the discretion Of the secretary of
the treasury to deposit gold coin or
bullion to cover the excess, and at the
end Of two months such deposit shall
be required. All the usury laws Of the
states should be repealed, so far at
least as they relate to short time loans,
and no national bank should be allowed
to make discounts for a longer time
than ninety days.
"The payment of interest on de-
posts." said Prof Kinley, should be
forbidden and the law which allows de
posits of country banks in banks Of
Is serve cities to count as part of Jhe
reserve of both, should be repealed
Every national bank should be forbid
den to pay out the notes Of any other
but should be compelled to receive
them at par and forward them to its
clearing houss for redemption Each
bank should keep at its clearing house
redemption fund equal to five per
cent. of its circulation If any bank
should fail to redeem a note of its own
issue on demand, the holder may seek
its payment by either Of the methods
provided for the payment Of govern
mnt drafts and the affairs of the de-
faulting bank shall Immediately be put
into the hands Of a receiver and It's af-
fairs wound up. A reserve Of at least
twenty per cent. Of deposits shall al
ways he kept on hand except when
+ lIl' NlfCOhul niue vi Nttll lbduS 1T any
of the central cities in which the clear
ing houses are situated riser 20 ten
per cent. the reserve Of airy bank in
thai department may be allowed to
fall to fifteen per cent Of its total de-
nosits. In a crisis clearing house GER
tifcates may be issued subject to the
regulations which now govern their
issue i'm New York city.
There is nothing i'm these proposals,
continued Prof Kmley, that involves
wide departure from institutions and
methods already familiar, ana they pro-
vide for the ultimate safety and the
prompt payment of the public deposits
for expansion Of the currency in crises,
for the prevention of congestion of
money mt great centers, and for yari-
ofiou i'm fila yo111r1a of hank o,Yr-rar,ax-