The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1894-12-05

own people ms well M among people OF
other countries, and not only swell The
volume Of securities returned from
abroad, for sale or redemption, but
Increase the withdrawal OF foreign cap
lthl here before Invested In domestic
enterprises.
I'VE cannot preserve our trade rcln-
tions with the best customers for our
surplus products unless we maintain a
monetary system substantially In ae-
cord with theirs, and until they mani
Test n disposition to cooperate with uh
In effectlng a change upon terms Just
and fair Ia all our Interests, we ought
10 continue our adhesion 10 the gold
standard Of value with as large n use
Of silver as ls consistent with a strict
maintenance OF that policy, Since the
resumption OF specie payment United
States legal tender and treasury notes
have been redeemed in gold 90 the
amount Of SG0000,00O and all notes rc-
deemed have been rcisaued and are
now outstanding They are n constant
menace TO the gold reserve and no
scheme OF financial reform can be com
plete or cffectual which does not pro-
vide at least for their gradual elimina-
tion from our currency system. | am
convinced that the interests OF the
country require such change I'm our or
ernment entirely from the business OF
Issuing or relssulng these notes, and
thus relieve It's financial department
Of the periodical demands on It's re-
sources which, under the existing sys-
tenn, must continue TO disturb the finan-
cial and general business affairs OF the
people.
Arbitrary regulation OF the value OF
the circulation 10 be kept outstanding
L. la.
tenance OF n healthy financial con-
dition and is the exercise of the function
which does not properly belong 10 the
government or any other public author
ity It's effect Is to force paper cur
rency on the people when IL Is not
needed and deprive them OF IL when IL
Is needed, thus establishing and main
tanning improper and unwarranted con-
nection between the government and
the private business affairs OF It's cltl-
Zens. and making their successful prose-
cution largely dependent on the caprice
OF superior authority having no inter-
est in the transaction except. perhaps.
partisan interest not In harmony with
sound financial arrangements.
"In my opinion, the imposition or
tax by the federal government upon
the use OF circulting notes lawfully IS
sued by state banks Is an unJustliiable,
II not an unconstitutional interference
with the authority OF the several states,
but it's validity has been Judicially sus-
tained, and as II does not appear 10 De
practicable TO repeb. II absolutely at
this time, II is proposed 10 avoid It's
prohibitory effect by exempting from
taxation notes of such banking mstitu-
tlons as may be organized and con-
Quoted under conditions which VIII
amply protect holders of their paper. IL
will be observed that the plan sub
mitted proposes the repeal Of all pro-
visions Of existing laws which require
national banks TO hold fixed reserve
against deposits, and as this Is depar-
ture from the practice which has pre-
vailed continuously for more than
thirty years, IL is proper 20 state the
reasons which have prompted me TO
make these suggestions"
The secretary here takes up the ma
tIonal banking system from the time
II was originally organized and dis
cusses its features In detail. He says:
1T Is not the duty or the province OF
the government TO control or regulate
the private affairs of the people, except
for certain well defined purposes. and
as the custody and use of the funds be-
longing TO depositors are matters which
affect only the interests of the inter-
mediate party, they should be left 20
their own judgment and discretion.
Every properly managed bank, IL
left free to conduct it's own deposit and
discount business in the manner most
advantageous to its own interests. will
keep on hand reasonable reserve TO
meet not only ordinary demands, but to
provide for such emergencies as are
liable To occur in the community where
Il is located. but IL ought to be prohib-
ited by law from using such reserve
for the only purpose II was designed To
accomplish. The requirement that
banks shall pay their own obligation
imposes upon them no greater hardship
than is imposed by law In every other
business and financial institution In the
country and the only argument that
can be plausIbly urged against IL, in the
case of the banks. ls that, as the gov
ernment has undertaken through their
agency 10 secure a sound circulating
medium, Il should pledge its credit 10
keep Il good under all circumstances.
The conclusive answer to this is that
the government has discharged It's
whole duty I'm the matter when II has
provided such safeguards as VIII guar
antee the safety OF the notes issued by
It's authority: and this is one of the re-
suits which the proposed plan is in
tended TO accomplish.
1.-THE experience OF this country under
the act of February, 1874 which limited
silver certificates 90 denominations OF
ten dollars. and under the act OF August
1886, which removed that restriction,
justi1es the belief that he change now
proposed will result In the greatly In
creased use of silver coins and certi1-
Gates and that they would he much less
likely 20 return to and remain In the
treasury than at present"
ADDITIONAL JUDGES.