The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1894-12-07
The Financial Plan.

President Cleveland in his message
speaking Of financial reform says:
This condition cannot be Immediately
reached. but as step in that direction and
as means Of securing a more elastic cur
rency and obYiating other objections to
the present arrangement of bank circula-
tion, the secretary of the treasury presents
il his report u scheme modifying the pres
ent banking laws and providing for the is
sue Of circulating notes by state banks free
from taxation, under certain limitations.
The secretary explains his plan so plainly,
and its advantages are developed 10y him
with such remarkable clearness, that any
fcrt on my part to present argument in
lis support would be superAuous. | shall,
therefore, content myself with an unquali-
fed Endorsement of the secretary's pro-
posed changes in the law and brief and
an imperfect statement of their prominent
features. 1t is proposed to repeal all laws
providing for the deposit of United States
bonds as security for circulation; to permit
national banks to issue circulating notes
not exceeding in amount rs per cent Of
their paid up and unimpaired capital, pro-
vided they deposit with the government as
a guarantee fund in United States legal
tender notes, Including treasury notes Of
1890. sum OF equal amount to 80 per cent
of the notes they desire to iseue; ;his de-
posit to be maintained at all times, but
whenever any bank reiires any part of its
circulation proportiona'e part of its guar
antee fund shall be returned to it; to per-
NIT tie secretary of the treasury to prepare
and kee? on hand ready for issue in case
an increase in circulation is desired, blank
national bank notes for each bank having
circulation, and to repeal the provisions Of
the present law imposing limitations and
restrictions, thus permitting such increase
or reduction within the limit Of tho Is per
cent of capital, 10 " as quickly made as
emergencies arise In addition to the
guarantee fund required, it is proposed to
provide a safety fund for the immediate
redemption Of the circulating notes of fail
ed banks by imposing a small annual tax,
say one-haf Of per cent upon The average
circulation Of each bank until the fund
amounts to per cent o. the total circula-
lion outstanding.
%hen bank fails it, guarantee fund is
to he paid into this safety fund, and its
notes are to be redeemed in the FIRST in
stance from such safety fund thus augment
ed. Any impairment Of such fund caused
thereby to be made good from. the imme-
diately available cash assets Of said bank,
and il these should be insufficient such i'm
pairment TO be made good by "a Pre- rata
assessment among tine other banks, their
contributions constituting first lien upon
the assets Of the failed bank in favor of the
contributing banks As further security,
it is conten.p plated that the existing pro-
vision fixing the individual liabilities of
stockholders is TO be retained, and the
bank 8 Indebtedness on account of its cir
cuIaling notes is to be made first lien On
all its assets, For the purpose of meeting
the expense of printing notes, official super
vision, cancellation and other like charges,
there shall be paid tax, say one half of
per cent per annum en- The average amount
of NOES in circulation. 1t is further pro-
yided that there shall be no national bank
note1 issued for ess denomination than $40
and that each national bank, except in cases
Of failed bank, shall release or retire it's
notes in the first instance at its own Office
or at agencies to be originated by it, and
so fixed reserve may be maintained on ac-