Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-12-11

you from the tax
Mr.. johnson of Ohio referred to the
! old wild cat days.
] THAT Is thing OF the past" said
/ the secretary. You could no more re.
sumo the Wild system than you could
revive the conditions which made IL
possible. We have advanced far be-
! You'd the possibilities Of Wild cat sys-
tenn"
The secretary said the 10 per cent
/ tax proposed on state banks was sum
Client TO wipe out their circulation IN
case they did not observe good condi-
lions. II was practically prohibitory
tax.
Mr.. Brosiua OF Pennsylvania asked
n a state bank could not issue its notes
for a year without observing conditions
or paying the tax, as the tax was pay
able annually.
Mr.. Carlisle said that this would be
the ease untii the end Of the year,
when the tax became payable. The
bank would be free 10 issue Its notes
as II saw ut. but with the knowledge
that IL would have TO pay the tax II
the government conditions We're VIC
lated.
Mr. Springer asked why the state
banks should not be subjected to eN-
actly the same conditions OF reserve,
etc. as national banks,
Mr.. Carlisle added that In his Judge
ment the tax on state banks was IN
constitutional The courts thought
otherwise however, At that point Mr.
Carlisle said he would submit his bill
aud appear tomorrow morning II de-
sired to go over Il in detail. II was ar
ranged TO have the bill printed A recess
was taken until o'clock.
When the committee reassembied
Comptroller Of the Currency Eckes
appeared and made his statement
Noihing. he said, ought to be done by
congress looking to change Of the
present banking system unless the re-
suit should be beneficial both to the
banls and the public.
The extent or tie banking interests
OF the country represent In. capital $780,
100000; In deposits $1,000, 900, 600: In de-
positors about 100000. Such enormous
interests being Involved. any new AyH-
TEN 10 be inaugurated, must at the
outset command the confidence OF the
people. The national banking system
now In vogue might be- said to be
national habit. Most OF those who
made use of II know little OF any other
systems Therefore nothing In the pres
eat system should be altered unless it
could be improved upon 10 the promo
tipn Of the business interests OF the
people. In this country the note he
suing function was an incident the
countries 1t was different In France,
Germany and Russia the issuing func-
uou was paramount In England, Ire
land. Scotland and Canada the system
more nearly approached ours. The
achnme which he had suggested in his
report was Intended TO disturb ag little
as possible the existing order OF things
IN order to make any system auocesB-
ful the note issued must be Immediate
ly, not ultimately, convertible Into coin
rms was the frst considerations after
Jus came, II the banks could be given
the power to expand the currency In
times OF stringency tho two main OBJ
1erta OF currency system would be
obtained, In hts system he had pro.
posed IA so per cent deposit upon which
BANK notes should be Issued To the
extent OF the deposit these notes were
absolutely safe. the other so per cent
Would be Issued by Il safety FUND raised
by proper taxation. Frankly he ola
not consider such deposit necessary, but
the eAgeneie1 Of the war made It nee.
e9ory' The legisntipn OF that period
had created currency which In ana Of
itsclf, In his opinion, could not have
maintained itself had not tho govern.
ment endowed Il with legal tender
quality The existence Of these leEnl
tender1 today was the greatest danger
TO tho credit OF the United States AZ
L.
defects OF the banking system were
only incouvonleuces
me leEal tender called for gold and
must BY the law, be rc-issucd, The
ulNlI OF gnld could be made continuous
ana the confidence OF tho people must
pc uH7haken, both here and abroad.
rs long an trade relations between
thiA and other countries existed ON.
monetary laws must be roRurdful OF
aNHtcins OF other countries The niib.
nc credit abroad must be maintained
~ the redemption OF these notes In
Fold, Undoubtedly the manly thing 10
20, ne sud, was 20 redeem and retire
these notes, The authority TO do this
had onco been given Secretary NIcCui-
lpch, but II had been rcscindad n
could be done now out OF the gurpnis
lrNtuues or by means OF funding bonda
~ was now proposed 10 give the bani;H
u valuable franchise. ana IL was prop1r
tnat they should make fair return
N order TO secure the current redemp.
tion OF those legal tender notes. The
bantn for the privilege OF lssuing
notes on the capital stock aENingt their
nHeeta, should be made to deposlt legal
tenders with the government, aa a ro-
serve fund. To-day. under the ma
tionNl banking act, SlGh. 900 600 az Ieunl
tenders held for reserve funda were
taken out OF circulation. Under the
hystcm proposed 30 PEI cent Of tho ,,ir
eulation would he deposited IN legal
tenders, for which circulating notes
would be issued dollar for dollar.
Dollar for dollar ih's would In M
wise decrease the volume Of currency.
The operation OF this plan would lc
90 immediately with icaw SltA.0O0. 900 ~
legal tenders from the SiS0, 10000 Of
igh tcndors now used to drain tie
tr.hsury OF gold.
llls ahould be done by every hank
fer - prlvllegr Of future Issue Of nntrs
against It's 0ssuts. Now utles1 therc
was sufficient prlg. In circulation
banks would no, TAXA It out. il was
nam business matter. Tha cnmplaint
unucr tho present system was that thers
WIS no prout in circulation, Abonf
s2pNuol VOo In natio1Ql b.N,F circulation
s. onsi landing. Certainty un ier 10
plcpeged system there would be n ctp-
SIDERABLE prohl In tie present clrcula.
uon and IN times Of Imam the urofils
hy taking cut nott1 AGAINST assets
Wou'l be materially increased, AZ I,
the question OF elasticity. elasticity was
g'tf ned oy Two thiuss. tne demand
ana the Immediate conyrrtibi.ity 81 the
notes To the extent OF 80 per cent OF
inc notes the currency would be elias
tic, This plan would relieve the treas
my OF SSt0,00O,00O OF sroOnbacka and
furnish an elastic currency FOR the peo-
pie ana profitable currency for the
banks. Wv
He argued the tnharent ,is-h. - 49,.