The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-10-21
WOULD INCREASE CIRCULATION.
Proposed National Bank Legislation
That May BE Considered Soon.

Special to the Indianapolis Journal
WASHINGTON, Oct. 20.-It is the opinion
of the best-informed men in Congress that
If there is unconditional repeal Of the silver
purchasing law, or a compromise is effected
whereby silver purchases will be material
ly reduced, and limit Of time fixed when
all purchase must cease, at least one i'm
portant piece of national bank legislation
will be completed. The proposition is to
give national banks par value of circulation
upon bonds deposited, and to give them IS
per cent. of par value in circulation upon
State, county, municipal and other first
class securities which may be approved by
the Treasury Department, and deposited
here to secure circulation.
1t is apparent that an agreement cannot
be reached upon any bill which will simply
abolish the 10-per-cent. tax on State bank
circulation. question has arisen involv-
ing the jurisdistion of States over banks of
issue which promises to forever prevent a
re-establishment of the old system of State
bank circulation. The Sound-money men
M Nh not permit any KIND OF circulation upon
tons or institutions which is not controlled
by the federal government The advocates
of State bank circulation want the entire
matter turned over to the States which
would. of course, insure the old wildcat
system.
On first thought it would occur that the
proposition to permit national banks to
issue circulation upon State, county and
other securities, would be bitterly opposed
by the advocates of State bank issues and
the enemies of the national banking sys-
tenn. Nearly all of the latter are among the
free-silver men, and the most influential
come from the silver States in the West
and Southwest. When the suggestion was
first made it was almost ridiculed by these
men, but they have since been looking into
its far-reaching effect. They see that it not
only means enormous increase in the cir
culating medium, but immense apprecia-
ton in the values of securities which their
and municipal bonds, which are always
issued in the new sections of the country
for needed improvements. have not had q
ready sale at good figures. 1t is seen that
If these securities were to be accepted as a
basis for circulation by national banks,
was issued upon them, their value would be
greatly enhanced All securities which were
acceptable to the Treasury Department
basis for national bank circulation would
jump forward In value like magic, and their
stability would be assured. There are some
men in Congress who believe that the bonds
issued by the best-paying railroads, water
works, gas, power street railway and kin
dred corporations should be acceptable as
security for national bank circulation. The
preponderance Of sentiment is, however,
against extending the line of securities be-
yond those Of States, counties and munich
palities, which are creatures, in a way. OF
the parent government, and which paw trib-
ute one TO the other and collectively to the
federal government. Certainly, If these Sc
curities were to be seized by bankers TO Sc
cure their circulation, the other securities
named would also appreciate in value. as
they would have less competition from in