The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1894-12-14

stcItldlN Naiii'ie :.
complete revolution of our present II
currency system, and much more. :
Its contemplated results are as foi- :
lows:
/. The retirement Of all national !
bank currency, and the abandon. Q
ment Of the deposit Of national E
bonds with the government as Sc
curity for bank notes Of any kind :
2. The issue Of circulating notes
by national banks, or banks organ J
lied under state laws, under fixed
conditions, to the amount OF 10 per
cent. of their paid up capital.
Thus. if bank is organized with
paid up capital of $l,OOo,OoV.oo It {
Imay issue notes to the amount OF
$3.50, 900, but it must deposit with
the national treasury greenbacks or
'other United States paper currency
to the amount Of 1925 600 as al
guarantee for the redemption of the
$3.50. 900 of notes issued. The
> 'lstockholders of national banks Will
:, be individually liable as at present
to the full amount of stock owned:
THE stockholders of state banks will
!, be liable, to the same extent. 'ior
1.-THE redemption Of its circulating
notes." In all banks the circulat-'
Fling notes will be first lien on the
'e eentire assets of the bank. A tax OF
slone-half Of / per cent. will be i'm
= posed annually on the circulation
national banks. On all banks a
- tax will be imposed in proportion
to circulation until a safety fund OF
lc 5 per cent. is secured on the entire
- circulation, and when any bank
I. fails its notes will be at once re-
~ deemed from this fund.
y; 3. No national bank is to issue
Z. notes OF less than 80.
r 4. No restriction is to be placed
on the increase or decrease of ma
Itional bank circulation.
5. No bank is required to hole
err any reserve for the protection OF de
ch positors.
INT 6. The secretary Of the treasur,
the NAV retire United States currenc,
aid to the amount Of 20 per cent. OF al
ure Outstanding bank currency.
These are the important parts G
ll'sIthe scheme. The bank notes pre-
the posed would apparently be safe vi
theliess indeed banks should fail
ase, rapidly as to exhaust the "saiet
dslfund," and even then the first lie
,f lon the entire assets and the pc
the sonal liability Of stockholders mak
ion it improbable that the owner OF
nts. hank note could ever fail to have
reg redeemed. But these notes are n
iersllegal tenders, the government
rep not responsible for them except,
GUS course. as to the trust funds he
theby it for their protection.
Does this plan furnish an expa
bill lsiye currency? At first thoug
the one saws. "Yes-an enormous
lins, ,Iexpansive one." But on examin
was ltion il will be seen that the expa
tion sion depends largely on I
pre- secretary Of the treasur
mes, for in addition to the 80 per Gel
gage deposited by the banks he is en-
Is at tiled to retire 10 per cent. in Unit
ID of States currency. SO long as ne
sires to exercise this power the
E ur- sue of bank notes would not
,om- crease the total circulation at
-ead- but merely change it from Unit
d bylStates currency to bank notes,
akenIthe amount Of 30 per cent. OF
low total bank notes issued.
con- But most important is the qu
ton. What effect would this syst
at nohave on banking? The notehold
upon are safe enough, but how about
0 APP |depositors? Taking such a b;
h the as we have used for illustrat
tant- above, the depositor knows I
, the there ale out standing $525 600
alton bank notes, unsecured except
takenl their first lien on the assets OF
entcd bank. and in state banks the
.rnor. claim against the individual pro
tv of the stockholders. The de-
itor has nothing to look to but v
n GIRLS left after the noteholders are
" theIisfied. There is no reserve for
+. &Iprotection. Will business men
,ase isinclined to deposit with bank:
{ Ed. Issue? Will intelligent banker
n oc- inclined to issue SD long as dep
|e Mr.. usually far exceed the amount
axe acan issue? And in case Of
,ult ofsvmptoms Of panic, or rumoI
nfortu. weakness Of a bank, will not tn
en- the positors run on a bank OF
"a out. much more quickly than on
Iminis- banks? II would seem that
/ man. system would be certain to inc
against deposits in safety vaults and
Z time stockings, and therefore a rea
repre- duction OF the circuiation.
10 the venture the assertion that the
rt time earnest champions OF this 3.
n favor among bankers Will be the