The farmers' union. (Memphis, Mo.) 1891-1895, 1894-11-08
A WILD CAT SCHEME.
TkE PLAN OUTLINED IN THE
.nAZZARD CIRCULAR.
National Bankers Favor More Money Pro-
vid-d 1t Is Issued by the National Banks
--tOntrOi Labor by CONTROLLING the
Wages Of t:ie I.abIOrer.


pared Il petition to Congress, which
submitted to the bankers Association
for approval. to aineut the present ma
tionai banking system.
This new ,c!ieIne, so far II, we can
get at it from the press dispatches,
provides that the national banking act
requiring the deposit of bonds to Sc
cure circulating notes hereafter issued
shall he repealed All Of the banks to
issue circulating notes to the amount
Of 30 per cent. of their paid up, unim-
paired capital, subject to a tax OF one
half Of per cent. upon the average
amount Of circulation outstanding tor
the year; and an additional circulation
of % per cent. of their paid up, unim-
pared capital, subject to the tax of
One-halt OF per cent. and to an adj
ditional tax per annum upon the aver
age amount of such circulation ont
standing Tor the year, sad additional
% per cent. 10 be known as "elncrgency
circulatinn. The tax of One-half of |
per cent. upon the average amount Of
circulation outstanding shall be paid
to the Treasurer of the United States
as II means of revenue ont of which
the expenses of the office of Comptroller
OF the Currency, the printing OF cir
cula!ing notes, etc, shall he defrnvcd.
The excess over one-half of per cent.
OF the lax imposed upon the "emer-
Kcncy circulation" shall be paid into d
"guarantec fund
The banks issuing circulation shall
deposit and maintain with the Treas
urrr Of the United States Il "redemp-
ton fund" equal to ) per cent. of their
IA n tn lnfi
provided! for under the existing law.
The redemption OF the notes of all
| banks, solvent or insolvont, to be
made as provided for by the existing
law.
Create "A guarantee fund throug h
tire dcro,l, by each bunk of , per cent.
upon the amount of circulation re-
criHcd the first year. Thereafter I'M
pose Il tax of half of per cent.
upon the average outstanding circull-
ton, the same to be paid into tins fund
until it shall equal per cent. of the
entire circulation outstanding. when
the collection of such tax shall be sls-
pended. to be resumed whenever the
Comptroller OF the Currency shall
deem It necessary. The notes of in
solvent banks shall be redeemed by
tine Treasurer of the United States out
OF the guarantee fund If it shall he
sufficient. and ii not sufficient then ont
OF any money i'll the treasury, the
same to be reimbursed to the treasury
out OF the guarantee fund" where re-
pleniSh"d I'll her from the assets OF he
failed banks or from the tax aforesaid.
The Government shall have prior
lien upon the assets of each failed
bank and upon the liabilities of share
holders for the purpose of restoring
the amount withdrawn from the guar
antee fund tor the redemption of its
circulation.
The plan was presented to the asso-
citation and. according to the reports
was adopted "bv An almost unanimous
vote.
\ side light may be thrown upon
the scheme 10y luo!ing Il speech in It's
favor b, \. Il. Hepburn. formerly
comptroller OF the currency. but ut
present president OF the Third Nation
Jul Bank of New York. He said:
Tie political action of both parties
expressed III party platforms and sta
tn law representing not honest con-
Hlrlion hH' Il desire 10 plarlte and cap
lturr the mere money and the silver
woes Is res on>ihle for conviction
hat has become ingrained in the
mind ot many tina; there can he no
lncrca>c III our circulating. medium ex
hep; 1t comes through some form of
silver Legislation. they say: Opp
l,ostd io tcre coinage, what are YOU 60
ing to do: Population and business
In -, N, Sh,,,l
increase IN the same ratio. The Gov
.rnncnt ~!.ould not issue more tat
money. State bank circulation is
traug!lt with danger National banks
cannot supply currency because Coy
'rumcn; honHs rs security are fast be
ng retired. We must resort TO silver
n,hr only alternative.
iii, action OF the bankers o; Ealti-
more. 50 ably presented to this con-
BENTON anl for which they deserve
he thanks ot the nation. Is Il com
,let, answer to all tuis AMI it is \
timely answer. With the Repuhll
ans OF California and thej Democrats
III OH" demanding free coinage oi sill
Ter at the ratio of LII to ani yarviu {.
haGe> OF the same sentiment finding
bubble and party expression III differ
mt localities it is IMPERATIVE tina: this
Convention Of bankers formulate the
principles upon which they believe
3he currency Of the country should I've
bundled. \ currency to be elastic
lust be issued against credit. Banks
bust have power thus to create money.
~ no other way can currency be elias
c. In no other way can 1t meet til,
ants OF commerce.
From the very nature of things the
Government cannot give such "A eur
ency. The banks can and the bank
lly can with prudence and safety I've
lowed to do So There is no more
lOney in the country in 1894 than
lere was IN 1898. Now money clogs
10 vaults Of our banks and begs in
bstment o. @ lower rate per annum