Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1894-12-13

is we'll to encourage such importations as
manufactures should and markets in every
part OF the habitable globe Is consistently sup
plemented by the greatest possible liberty to
our citizens in the ownership and navigation OF
ships in which our products and manufactures
may be transported. The millions now paid to
and products across the sea should be turned
into American hands; ship-building, which has
been protected to strangulation should be
revived by the prospects Of profitable
employment for ships when built, and
THE AMERICAN SAILOR
should be resurrected and again take his
place, sturdy and industrious citizen in time
Of peace and q patriotic and safe defender of
American interests in the day OF conflict. The
ancient provision of our law denying American
Americans appears in the light Of present con-
ditions not only to be failure, for good at
every point, but to be nearer relic OF barbar-
mission of statute of the United States. I
earnestly recommend its prompt repeal
An EFFICIENCY.
THE RECENT SALE OF BONDS.
During the last month the gold reserved in
the treasury for the purpose OF redeemlng the
in the hands of the people became so reduced,
and it's further depletion in the near future
seemed so certain, that in the exercise OF
necessary to replenish this reserve and thus
maintain popular faith in the ability and de-
agreed. it's pecuniary obligations. 1t would
have been well if in this emergency authority
had existed to issue the bonds of the govern govern.
and maturing within a special period.
But the congress having failed to confer sucn
authority, resort was necessarily had to the re-
sumption act of 1875, and pursuant to its provi-
sions bonds were issued drawing interest at
the rate OF 5 per cent: per annum and maturing
ten years after their issuing, that being the
shortest time authorized by the act am glad
to say, however, that on the sale of these
bonds the premiums received operated to re-
duce the rate of interest to be paid by the gov
eminent to less than per cent.
NOTHING COULD BE WORSE,
or further removed from sensible finance than
the relations existing between the currency
the government has lstued, the gold held for
its redemption. and the means which
must be resorted to for the purpose of replen-
ishing such redemption fund when impaired.
Even If the claims upon this fund were con-
fined to the %
very small But these obligations when re-
but are reissued and may do duty many times
by wav of drawing gold from the treasury.
Thus we have an endless chain In operation
Depicting THE TREAsURY's GOLD
and never near final rest. AS il this was not
bad enough, we have by statutory declara-
to maintain the parity between gold and silver
aided the force and momentum of this exhaust
ing process, and added largely to the currency
obligations claiming this peculiar gold re-
demption. Our small gold reserve is thus sub
ject to drain from every side. The demands
that increase our danger also increase the ne
cessity OF protecting this reserve against de-
pletion, and it is most unsatisfactory to know
that the protection afforded is only temporary
palliation. It Is perfectly and palpably plain
that
THE ONLY WAY UNDER PRESENT CONDITIONS
by which this reserve. when dangerously de-
pleted, be repleniShed is through the
issue and sale of the bonds of the
government for gold: and yet congress has not
only thus far declined to authorize the issue of
suited nl1rnOSG. there
seems a disposition in some quarters to deny
both the necessity and power for the issue OF
that any of our citizens are deliberately willing
that their government should default in
fin opera operations Should be reduced to
silver basis. AT any rate. I should not feel
that that e my e dn5Iy m was done omitted
TO AVERT SUCH CALAMITY.
AS long, therefore. as no provision is made for
the final redemption or the putting aside OF
the currency obligation now used to repeatedly
and constantly draw from the government its
gold, and as ong as no better authority for
bond issues is allowed than at present exists n
as often as it becomes necessary to maintain
sufficient gold reserve, and in abundant time
to save the credit OF our country and make
good the financial declarations of our govern
ment.
BANKS AND CURRENCY.
Questions relating to our banks and currcn-
CIV are closely connected with the subject just
referred to and they also present some unsat-
isfactory features: Prominent among them are
the lack OF elasticity in our currency circula-
ton and its frequent concentration In fnan-
cial centers when it is most needed
in onss parts e 1he Of sount se
government from the business of banking Is
the ideal relationship of the government to the
circulation Of the currency OF the country This
condition can not be immediately reached: but
as step in that direction, and as means OF
other objections to the present arrangement OF
bank circulation, the secretary Of the treasury
presents in his report scheme
MODIFYING PRESENT BANKING LAWS,
and providing for the issue of circulating notes
by state banks free from taxation under GER
tain limitations. The secretary explains his
plans so plainly, and its advantages are de-
veioped by him with such remarkable clear
ness, that any effort on my part to present
argument In its support would be snperhuous.
qualified Endorsement OF the secretary's pro-
posed changes in the law, and q brief and i'm
It is proposed to repeal all laws providing
for the deposit OF United States bonds as Sc
curity for circulation; to permit national banks
to issue circulating notes not exceeding in
amount IS per cent. of their paid-up and unim-
paired capital, provided they deposit
see fund in Wnited States legal tender
notes, including treasury notes OF 1894, sum
equal in to % per Of the tn
tanned at all times: but whenever any bank re-
tires any part of its circulation proportional
part of its guarantee fund shall be returned to
prepare and keep on hand ready for issue in
an bank is
bank having circulation, and to repeal
the provisions of the present law imposing
string to reduce or increase.their circulation,
thus permitting such increase or reduction
within the limit of IS per cent. of capital to be
quickly made as emergencies arise.
IN ADDITION TO THE GUARANTEE
required: it is proposed to provide a safety fund
for the immediate redemption of the circu-
lott nf cd hn lrG Inv INN lyr,rS
a small annual tax, say one half
of per cent. upon the average circulation of
Of the total circulation outstanding. When a
bank fails its guarantee fund is to be paid into
this safety fund ,h and Its notes are to be
any Impairment of such fund caused thereby
| to be made good from the Immediately availa-
should be insufficient such impairment to be
made good by pro rata assessment among the
first lien upon the assets of the failed bank in
favor of the contributing banks.
AS A FURTHER SECURITY
it is contemplated that the existing provision
fixing the individual liabilities of stockholders
is to be retained and the banks Indebtedness
on account, Of it's circulating notes IS to be
made first lieu on oil its assets.
For the purpose of meeting the expenses OF
printing notes, official supervise on. cancellation
tax of say one half Of / per cent per annum up
on the average amount of notes in circulation.
It is further provided that there shall
be no national bank note issued
OF less denomination than 80.
That each national bank. except in case Of a
failed bank, shall redeem or retire it's notes in
the first instance at it's own office at agen-
cies, to be designated by it: that no hxed re-
serve need be maintained on count
of deposits. Another very important feature
of the plan is the exemption of state banks
from
TAXATION BY THE UNITED STATES
| in cases where it is shown to the satisfaction
q r.