The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1894-12-07
TO REPEAL BANKING LAWS.
Growers Plan to Make Things Easy for the
Banks.

Banks.
On banks and banking laws Cleve-
land, in his message says:
Questions relatingto our banks aud
currency are closely connected with the
subject just referred to, and they also
present some unsatisfactory features.
Prominent among them are the lack of
elasticity in our currency circulation,
and its frequent concentration in f.
nancial centers when it is most needed
in other parts of the country. The alb
sOlute diveroement of the government
from the business Of banking is the
ideal relationship of the government
to the circulation of the currency of
country. This condition cannot be
Immediately reached, but as step in
that direction, and as means Of secUT-
ing a more elastic currency and obviat-
ing other objections to the present ar
rangement OF bank circulation.
at is proposed to repeal ali laws pro-
Yiding for the deposit of United States
bonds as security for circulation; to
permit national banks to issue circula-
ting notes not exceeding in amount rs
per cent of their paid up and unimpair-
ed capital, provided they deposit with
the government as q guarantee fund in
United States legal tender notes, in
Guiding treasury notes of 1890, a sum
equal in amount to 80 per cent Of the
notes they desire to issue, this deposit
to be maintained at all times. But
whenever any bank retires any part
Of its circulation proportional amount
Of its guarantee fund should be re-
turned to it; to permit the secretary of
the treasury to prepare and keep on
hand ready for issue in case an in-
crease in circulation is desired, blank
national bank notes for each bank haY-
ing circulation; and to repeal the pro
visions Of the present law imposing
limitations and restrictions upon banks
desiring to reduce or increase their
circulation, thus permitting such in
crease or reduction within the limit
of 70 per cent of the capital to be
quickly made as emergency may arise.
In addition to the guarantee fund
required it is proposed to provide
a safety fund for the immediate re-
demption of the circulating notes of
failed banks by imposing a small an
nual tax, say one-hslf Of l per cent
upon the average circulation OF
each bank until the fund amounts to
3 per cent of the total circulation
outstanding. When a bank fails its
guarantee fund is to be paid into this
redeemedin the first instance from such
redemption fund and its notes are to be
safety fund thus augmented; and i'm
pairment of such fund caused thereby
TO be made good from the immediate
available cash assets Of said bank, and
if these should be insufficient, such
impairment to be made good by pro-
rata assessment among the other banks,
their contributions constituting a first
lein upon the assets of the failed bank
in favor of the contributing banks.
As a further security, tits contemplated
that the existing proposition; fixing the
individual liability of stockholders, is
to be retained, and the banks indebted
ness on account of its circulation notes
to be made first lien on all its assets
for the purpose of meeting the expense
of printing notes, official supervision,
cancellation and other like charges.
There shall beimposed a tax of say one
half of l per cent per annum upon the
average amount of notes in circuls-
ton. 1t is further provided that there
shall be no national bank notes issued
of a less denomination than So That
each national bank, except in case Of q
failed bank shall redeem or retire its
notes in the first instance at its own
Office or at agencies to be designated
by it.