The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1894-12-03

suSS0sstusy cukok0U ~ % uOs08 Suu to0
sHpsristlce OF tho g0vsfnmeue OF the
Uniesi States has proved NO sxeeptien to
the rule. The general cost su0 Ioes On.
tailed upon tho government sad ths period
OF unesrtainty 10 the 9ovssnnsuSs credit
and the stability Of our msMsessy system
have been % great as % msko see leGal
tender and treasury Issues Of too) enc Of
the extraordinary burasus plA0sd on The
pooplc. These issues suaht - - ~
deemed and cancelled sud tbs govern.
msnt thus enabled to retire from the
banking business. . business Ter which u
u % poorly squippsd.
"In the light Of tho present coalition Of
the Govsrnmsnt's finances" tho comp
trollsf continues, "thas which ouzhs to
have been done when there was surplus
In the treasury cannot nov hs undse,aksn
and the same conditions must eoutinue
to weaken she country'a credit end plague
the lines OF bushes, unless means ere do.
vissd for removing thssc issues from the
channel OF current redemption Sanssl such
tilno ~ the government finds itself In
position TO do that which at flrse vas the
intent OF all-sraduaIly redeem and ean.
Gel thein. Tho ultimate redemption OF
coin must Of course ali bs upon the gov.
srnmsut. but the embarrassment does not
arise from their ultimate, but from their
current redemption.
ut 10 therefore, suggested that u con.
gress shall repeal the provisions Of tho
present act requiring national hanks TO
make . deposit Of government bonds
In order 10 secure circulating notes, aud
substitute therefor . provision giving
them instead tho right to issue the same
against their assets, It incorporate there.
10, snd % part thereof, that, ~ b pre-.
requisite to 20 doing, the banks be com.
pelIsd to deposit with the tressursr ss the
United States legal tender issuss, oe
Sssues under the sct Of 1880, equal in
amount to tho difference betweeu the
psrcsntass Of their capital stock oe the
issue granted against their asssts aad the
total Of such capital stock.
"The deposits thus made ought to ~
main with the treasurer until the hank
untary liquidation, to do business end in
that case the government ought 10 redeem
and cancel such treasury issues dsposi-
ted. AZ against this deposit Of legal ten.
der and treasury notes % made there
should bs issued to the banks, dollar for
dollar. national bank notes, either ss the
same or different design, 10 might bs
deemed best.
"The government should not undertake
OF In any wise become responsible foe the
current redemption OF these notes. lts
responsibility should end with The 70.
demption of the notes deposited to secure
such circulation when the hank ceases 10
exist. At the present q current rsdemp.
| ton fund Of per cent. Of the outatand.
| ing circulation 10 found sufaeisnt and Il 10
probable that In future no sSsater amount
would be required. The elasticity Of
Issue In the national hank circulation will
be found IN the percentage Of the issue
against tho assets subjsct to the necessary
rate Of taxatious and insured by an ade.
quats safety fund 10 guarantee the note
holders aaainst loss. The government
will be aided. the bank given in exchange
dollar for dollar deposited, and thus be
relieved Of the loss incident 10 dspositiuR
an amount Of its capital stock IN sxeess
Of the return In notes granted Il. No
violsut ceutraetion Of the currency would
follow such course. but whsnsvsr con.
traction did occur Il would bs not less
| gradual than at other times.
"Suggestions have bsen received from
many eminent sources that the whole
question Of the banking and currency
system ought 10 bs referred by congress
to committee to bc created by law, ap-
pointed BY the president, and clothed by
proper authority.
"This commission, nonpartisan In its
character, composed of men Of eminent
abilities, could unqsstionably devise Q
currency system, sound In every part, and
one which would commend itself to every
interest Of tho country. II could largely
take the question out Of politics and have
It considered simply in its business 90.
poets and upon its merits; but II the pres
ont congress IL to enact law upon the
subject, tho appointment Of the commits
sion would avail nothing. II. however,
nothing moro definite can be accom-.
plished, the question Of tho creation Of
such commission ought TO bo considered
and acted upon."