The Durham daily globe. (Durham, N.C.) 1889-1894, 1893-08-18
THINGS LOOK BETTER
The Situation Sized Up in a Gen.
eral Way.
An Interesting Letter from Our Wash
ingtOn Correspondent.
ABOUT NJ RATIONAL BANK PREMIUMS
Competition Concerning the Canadian
Pacific Railway with Our Ameri-
can Reads.

can Re ads.
W~AsHINGTON, August 1S.-ISpecial -
There seems to be general approval OF
Voorhees, bill to increase national bank.
ing currency. 1t is claimed that there is
no valid objection to allowing the ma
tional banks TO issue notes TO the par
value of the government bonds deposited
laticn All the government bonds are
selling at a premium except the 2 per
cents, and undoubtedly these would go
above par if the proposed legislation
should be enacted, so that the guarantee
is absolute. If the bill introduced by
Senator VOORHEES, should become law
there would be added to the currency, as
sOOn as the notes could be printed, about
$4,000, 900, but ii is probable the increase
would OF stop with this The banks
would buy more bonds, even at a moder-
ate advance in price, so that it is a safe
estimate that the result of this legislation
would be to add perhaps $40 900 to
the currency within a few months after
its enactment, and it is hardly necessary
to say that the country could not be
given a safer or a better currency. If it
were assured that the proposed measure
would become law within the next thirty
days it would have a wonderful influence
in removing distrust and restoring con-
fdence.
The GLOBE correspondent went to the
office Of the comptroller of currency and
hunting up the computer of the depart
ment of banking business, asked what
would be the net profit upon national
bank circulation at this time if : per cent
bonds were purchased at to days market
prices and deposited to secure the circu-
lation? The cOmputer figured a moment
and replied: About one third of 1 per
cent. To state the exact net profit in an
nual interest it is 1888 16 on 100000,
which is the maximum circulation for a
bank with $4,000 capital. could put it
in another form by saying the net in
terest profit on national bank circulation
where 4 per cent bonds are deposited is
to-day 1893 one-thousandth of 1 per cent
If you will look upon the eighth page of
the last annual report of comptroller of
currency you will find where he figures
the exact net profit upon bank circula
ton where ., 4 and 6 per cent bonds are
deposited. At the time that report was
issued last January there was 1915 20 net
profit on 100000 Of circulation secured
by . per cent, $330.1G where 4 per cent
were deposited and $1,21S IS where 6 per
cent bonds were deposited. Six per cent
bonds for circulation security are now
out Of the question, and we can only
figure on 2 and 1 per cents. With 4 per
cent, at 81 %, to days market price, a
national bank with 100000 capital and
800, 0G0 circulation can make in one year
just $3S316 on circulation"
President Cleveland has given the free
coinage democrats in congress to under
stand in unequivocal language that if a
free coinage bill is sent to him be will
veto it. The president is quoted as say
ing that he would veto any bill for the
coinage of silver whether it fixed the
ratio at 30 to / or 25 to l or any other
figures, 1t is believed that the ultimatum
of the president against any legislation
~favoring silver will have a strong in
tluence in favor of a bill to repeal the.
present purchasing law.
1t is stated thai; measures will be intro.
duCed in both branches Of congress relat.
TO the old problem of the competition of
the Canadian Pacific railway with the
American trunk lines Among those
who have been giving careful attention
TO this matter and is strongly opposed to
the existing order of things is Senator
Higgins, Of Delaware, who intends to
introduce a bill on the subject at an early
day. Representative Hit, of Illinois,
will also introduce a bill similar TO the
one he introduced near the close Of the
last congress, 10 regulate the entire sub
ject of traffic relations on our Canadian
and Mexican borders 1t is the view of
Senator Higgins that the Canadian rail
way competition in the carriage of Amer.