Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1894-12-06


citizens are deliberately willing that
their government should default in its
pecuniary obligation or its financial
operations should be reduced to a sill
yer basis. At any rate | should not
feel my duty done II omitted any eff
fort could make to avert such ca.
lamity. AS long therefore as no pro.
vision Is made for the final redemD-
ton or the currency obligations now
used to repeatedly and constantly
draw from the government its gold
and as long as no better authority for
bond issues is allowed than ut present
exists such authority will be utilized
whenever and as often as II becomes
necessary to maintain a sufficient gold
reserve and abundant time to save the
credit Of our country and make good
the financial declaration Of our gov
crnment
A NEW FINANCIAL SCHEME.
"rhc questions relating to our banks
and currency are closely connected
with the subject just referred TO anu
they also present some unsatisfactory
features. Prominent among Chem
are u lack Of elasticity in our currency
circulation and its frequent conccntra.
ton in financial ccntcrS when ii is
most needed in other parts of the
country. An absolute enforcement of
the government from business bank
ing Is the ideal relationship of the
government TO the circulation of the
currency. This condition cannot be
Immediately reached, but, as Il step in
that direction and as Il means of Sc
curing more elastic currency and
Obviating other objections to the pres
cnt arrangement of bank circulation,
the secretary Of tha treasury presents
in his report aSchcmc modifying the
present laws and providing for the is,
sue of circulating notes by state banks
free from taxation under certain limita-
ton. The secretary explains the Plan
80 plainly and its advantages devel-
opcd by him with such remarkable
rlearncss that any effort on my part
to present IN argument In It's support
would seem to be supcrlluouS | will
therefore content myself with an un-
qualified endorsement of the sccrc-
tnry's proposed changes IN the law
and Il brief and imperfect statement
of their prominent features. 1t pro-
posed TO repeal all laws providing for
the deposit of United States bonds as
security for circulation, permit ma
tional banks to issue circulating notes
of their paid up and unimpaircd capt
tai, provided they deposit with the
government Il guarantee fund In
United States legal tender notes, in
Guiding treasury notes of 1890, sum
equal In amount to 30 per cent. of the
notes they desire to issue, this de
post to be maintained at all times,
but whenever any bank reduces any
part of its circulation Il proportional
part of It's guarantee funds shall be
returned to 1t; to permit the secretary
of the treasury to prepare and keep on
hand ready for issue in case of an in
crease in circulation desired blank ma
tional bank notes for each bank hav-
ing circulating; aud to repeal the
provisions of the present law imposing
and restrictions upon
banks desiring to reduce or increase
their circulation, thus permitting such
increase or reduction within Il limit of
n per cent. of the capital to be quickly
made aS emergency arises. In addi-
ton to the guarantee fund required,
II Is proposed to provide safety fund
for the Immediate redemption Of the
notes of failed banks by i'm
posing Il small annual tax. say onc-half
OF one per cent. upon the average cir
culation of each bank until the fund
To five per cent. of the total
outstanding; when bank
fails its guarantee fund to be paid into
this safety fund and its notes to be
redeemed IN the first instant from
such safety fund thus augmented any
of such fund caused
thereby to be made good from the
available cash assets of
said bank. and. II these should be in
sufficient, such impairment to be made
good by pro-rata assessment among
the other banks, their contributions
n first lien upon the as
sets of the failed bank In favor of the
banks. AS n further So
curity it Is contemplated that the cN
istiug provision liking the individual
liability of Stockholders shall be re-
scinded and banks Indebtedness on
account of its circulating notes to be
made first lien on all its assets. For
the purpose OF meeting the expense of
notes. official supervision, can
collation. and other like charges there
shall be paid II tax say of onc-half of
one per cent per annum on the aver
age amount of notes In circulation. Ii
further provided that there shall be
no national bank notes issued III less
denomination than ten dollars. that
each national bank. except In the case
of failed bank. shall redeem or re-
tire It's notes In the first instance nj
its own office or ut agencies to be
designated by 1t and no fixed reserve
need be maintained on account of de
posis. Another very Important feat
urc of this plan Is the exemption of
state banks from taxation by the
United States in case where II Is
,l,\,.n ,.N tl,N ,,ntIS ia NJ tho