Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1894-12-06

my duty was dong II ] omitted any
efc% | could rli-te TO avert such
| calamity. As long there fore IS no pro-
vision is made for the final r. dc mpiion
or the putting aside of the currency
| Obligation row used to ref aatedIy and
constantly draw from the goverr. nent
its gold, and as long as no better au-
thority for bond Issues is allowed than
at present exists such authority will
be utilized whenever ana az oiien - il
becomes necessary to maintain a sdffi-
cient gold reserve. and in abundant
time to save the credit of our country
and make good the financial declara-
tons Of our government
Questions relating 10 our BANKS and
currency are closely connected with
the subject just referred TO and they
also present some unsatisfactory feat
ures. Prominent among them are lack
of elasticity in our currency circulation
and its frequent concentration IN fid-
anciai centers when ii Is most needed
In cther parts 81 the county,
"'fhe absolute enforcement Of the
government from the business Of bank
irg is the ideal relationship Of the gov
"a nment to the circulation of the cur
rency of the country.
"ThGs condition can not be immedi-
ateiy reached; but as a step in that
direction aud as a means of securing
a more elastic currency and obviating
other objections to the present ar
rangement Of bank circulation, the Sec
rotary of the treasury presents in his
report a scheme modifying present
banking laws and providing for the is
sue OF circulating notes by state banks
free from taxation under certain linn
itations.
THE secretary explains his plan SO
plainly and its advantages are devel-
oped by him with such remarkable
clearness. that any effort on my part
TO present argument in its support
would be superhuous. | shall. there-
fore. content myself with an unquali-
fed Endorsement of the seeretary's
proposed changes in the law and a
brief and imperfect statement of their
prominent features.
STATE BANK TAXES.
1t is PROPOSED to repeal all laws pro-
viding for the deposit Of United States
BOMBS as security for circulation; to
permit national banksto issue circula-
ting notes not exceeding In amount
seventy-five jer cent. Of teir paid-up
and unimpaired capital, provided they
deposit with the Government. as guar
antee fund, in United States legal ten
der notes, including Treasury notes Of
1890, a sum equal in amount to thirty
per cent. Of the notes they desire to
issue, this deposit to be maintained
at alltims. but whenever and bank re-
tires any part of it's circulation a pro-
portional part of its guarantee fund
shall be returned to it; to permit the
Secretary of the Treasury to prepare
and keep on hand rady Of issue i'm
case an increase In circulation Is de-
sired blank national-bank notes for
each bank having eiculation and To
repeal the porvisions of the present
law imposing limitations and restric-
tons upon banks desiring To reduce or
increase their cireulaton-thus per-
uniting such increase or reduction
within the limit of seventy-five per
cent. of capital 10 be quickly made as
emergencies arise.
Another very important feature of
this plan is the exemption of state
banks from taxation by the United
States I'm cases where it is shown to
the satisfaction of the secretary of the
treasury ard comptroller of the cur
rency by banks claiming such exemp-
ton that they have not had outstand--
ing their circulating notes exceeding
seventy-five per cent. of their paid-up.
and unimpalred capital; that their
stockholders are individually liable for
the redemption of their circulating
notes to the fun extent Of their owner
ship of stock: that the liability of said
banks upon their circulating notes
constitutes under their state law a
first lien upon their assets; that such
banks have kept and maintained
guarantee fund in United States legal
tender notes including treasury notes
of 1890 equal TO thirty per cent. of their
circulating notes and that
such banks have promptly redeemed
their circulating notes when presented
at their principal or branch Offices"