St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-18


terest Bonds Ideas Which
Come From the Far West Tine
tured With the Silver Craze.
WASHINGTON, Dec. 1.-THE commit
tee on banking and currency has heard
from the country. Several weeks ago.
while the agitation of the currency
question was at Its height and the
wisest of Legislators hesitated as to the
panacea for the great distress existing
in the commercial centers, the commit
tee on banking and currency extended
an Invitation through the press to the
people al large for suggestions as to the
Wisest method of monetary legislation
10 meet the demands Of the times. The
result OF this invitation has been an
avalanche OF communications from all
parts OF the country, some of which are
frivolous, but many of which are of
great importance Just at this time. in
view OF the commercial standing of
some Of the gentlemen who have made
suggestions to the committee. Ex-
Senator Farwell, of Illinois, of the
John w. Farwell company" Of Chi
cago, New York, Manchester and Paris.
says:
SAAA1 IA4C SAOulQ BCl
out of the currency business, and that
II ought to have done so years ago. 1t
should pay Its floating debt at once by
the issue OF long, lOw-rate interest
bonds. After this floating debt is all
paid IN long bonds, then the committee
on banking and currency should pro-
vide that the national banks use all
these bonds at their face value as a
basis for their circulating notes: then
-tavr n
that the country required, and the gov
ernment would be absolutely relieved
from doing il. Possibly in the near
future 1t would transpire that there was
not enough government bonds to be
used as basis for the circulating me-
dunn then it would be easy to amend
the national act by providing for the
use of other satisfactory bonds. Next,
the government should repeal the sub
treasury act. Let the revenues of the
government be deposited in national
banks where collected, they giving Sc
curlty for the whole amount received,
and thus keep all the money in circula-
ton.
The clearing house association of
Seattle, WASH. through II. w. Wheeler.
president of the Commercial bank of
that city, submits a bill which provides
that all national banks, as at present or
ganized. the capital of which is paid
up and unimpaired. shoul be permit
ted TO withdraw the bonds held by the
treasury TO secure their circulating
notes, and together with such other
banks as shall be organized under the
amended laws, be authorized to issue
their circulating notes, to be provided
by the government III similar manner as
now pursued, TO equal 80 per cent of the
unlmpaired paid-uD capital.
j. L. Elliott. president of the First
National Bank Of Los Angeles. Cal.
recommends that the national banks be
allowed to issue 25 per cent of the cap
ital i'll Lills, to be taxed at the rate Of
per cent per annum. an additional %
per cent TO be taxed at the rate of per
cent per aHnum, and the third and
fourth 25 per cent to be taxed at the
rate Of and per cent per annum re-
spectIyely; that all these taxes be paid
into the treasury as guarantee fund.
and that the stock and stockholders
liability Of the bank be held as security
for the bills. which would be a prior
lien upon the same This would give
some tieXibllity to the currency. If
this could have been done in May, June
and july this trouble would not have
occurred, and millions of dollars would
nave been saved TO the country.
Jefferson Chandler, the head of the
well-known law firm of Chandler &
KTemer, of New York city, recon-
mends a bill which levies an annual tax
OF one-quarter of l per cent on all de-
poslts IN national banks. the tax TO be
paid TO the secretary of the treasury on
the last day of the month on the depos-
lis Of that month. The object of this
bill, as stated by its author, is to pre-
vent banking systems from "builing''
and bearing" the financial market.
The banking house of Gilman, Son &
Co., New York city. says: What is
wanted from congress at the present
time IS not more money, but some
change in the banking laws which will
provide money when it is wanted in the
future when another commercial dis
turbance comes upon US. What is
wanted is safety valve attached to the
banking system. This can be done by
bringing IN a bill to incorporate clear
ing houses under United States char
teTS. with such additional powers and
duties as are necessary to enable them
TO do under the sanction of the law and
supervision of the treasury officials that
which the New York banks did so sue
cessfully last summer without the sane.
ton OF law, except the law of self-pres-
ervatlon."
Inc Scandin avian Democratic Club of
Kings County. New York, sends the
committee long resolutions adopted in
mass meeting, demanding that silver
should be treated solely as commercial
product at its market price, but as such
should be used as security deposits by
national banks. state banks or private
individuals, for obtaining the legal ten
der from the general government upon
conditions to be formulated by the sec
retary Of the treasury; that branch
Office OF the United States should be
opened in Europe, where American Sc
curltles and currency should be kept in
such amounts as TO prevent their eX-
pensiYe transportation across the At
lantc; and lastly, that the senate OF the
United States, in view Of its tendency TO
aristocracy and responsibility, should
be abolished and the ''one-chamber sys-
TEN" be adopted as the most desirable
government OF free nation.
The chamber of commerce Of West
Superior. Wis, transmits the following
resolutions adopted by that body:
Resolved, That to relieve the country
Of present financial distresses we re-
quest that national banks be allowed to
circulate notes TO par value of bonds
deposited by such banks, and that the
tax on circulation be reduced TO lilo of
l per cent, and that the redemption
fund be reduced from per cent to
per cent.
The chamber of commerce of San
Francisco atnrmS the advantages of BIZ
metallism on proper differential basis
on the values of silver and gold. and
adopts the following resolutions, which
are duly attested and transmitted to the
committee:
Resolved, That this chamber respect
fully urges upon congress the enact
ment Of law calling in all
paper circulation below the de-
nomination of SO, ana that the
coinage of gold be restricted to coins
not less than SO as the most effective
and prompt methods of promoting the
circulation Of silver among our peonle.
That we also recommend the changing
Of the national bank act so that it will
permit note circulation equal to the
par value of government bonds hypoth-