The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1894-12-12

ternninHA lon Of the government to meet. as
bEree9, its peountast Obligations, IL HonId
have been we'll II IN this emergency authority
had existed, to Issue the bonds Of she GOV
ernrneat bearing loW date Of interest ana
maturing within short period, but the con.
grcss having failed to cphfer such AUTHORITY
resort was necessarily had to the reaumption
aot OF 1870 ana pursuant to its pioyisions
bonds were issued drawing interest st tho rato
OF B per cent per annuIn and iuatrstng ten
years after their issue, that being the short.
est time authorized by the act. an plhd to
soy, however, that on tho sale OF theSe bonds
tho premium received operated 10 reduce the
rate OF Interest to be paid by the government
to less than per cent, Nothing could be
worce or further removed from sensible finance
that the relations existing between the our
rency. The governmen: has issued the gold
bonds for its redemption and the means which
must be resorted to for the purpo1e Of re-
plenishing such redemption fund whom In
spired. Even II the claims upon this fund
we're confined to the obligations originally IN.
tended and II the redemption OF these obliga-
t!ons meant their cancellation the fund would
be very small.
But these obligations when road end redeem.
ed In gold are not Cancelled but are reissued
and may do duty several times By way Of draw
Ing geld from the treasury thus we have an
plotting the treasury's gold and never near
final rest as II this was not bad enought We
have by statuatory declaration that
II Is the pelicy of the government
70 maintain the parity between gold ana ell
yer, aided the force and momentum Of this e4-
hausting process, and added largely to thu cur.
rency obligations claiming this peculiar gold
redemption our small gold reserve Is the SUBJ
tect to drain from every side.
Nm orAr %hot tNnn a..
increase the necessity Of protecting this 70
servo against depletion and It is most pnsrtis-
factory to know that the protection AFFORDED Ia
only temporary pallistion. 1t is perfectly,
and palpably plain that the only way under
present conditions by which this reserve when
dangerously depleted con be replen.shad Il
through the issue and sale Of the bonds Of tho
government gold, and yet congress hag not
only thus far declined to authorize the Issue Of
bonds best suited to such purpose, but there
seems dspositionln some quarters to deny
both tho necessity and power for the Issue Of
bonds at all. I cannot for o memehi believe
that any Of our citizens are deliberately will.
ing that their government should default IN It's
pecuniary obligations or that Its hnapoial op,
eratlons should be reduced to silrsf basis.
At any rate should not feel that my futy Wne
done II omitted any effort 1ooul6 eaAke to
avert such calamity. As long theros7Se 90 no
provision Is made for the sohene modifying
present banking laws and providing to- the Is;
sue of circulating notes BY state bshku freo'
from taxation under certain limitations.
It is proposed to repeal all laws pftv1ding
for the deposit Of United States bonde Dc seou-,
rity for circulation, to permit national benka
to issue circulating notes not exceeding In
amount seventg-fve per cent. OF their paid-up
and impaired capital, provided they depos1t
with tho government as guarantee 3und u
United States legal tender notes, Including,
treasury notes Of 1893, o sun equal IN amount
to thirty per Gems Of the notes they Aesiro
to issue this deposit to DO maintained et all
times, but when any bank retires any part Of
It's circulation propottionste part OF It's guar.
antee fund shall BIO returned to issue. 70 per-
NIT the secretary Of the treasury t0 prepare
and keep on hand ready for issue In case an In
crease in circulation 1s desired blank national
notes for each bank having circulation And 70
repeal the provisions Of the present law I'm.
posing limitations and restrictions upoh banks
desiring to reduce or increase their circulation
thus permitting suoh inorease OF reduction
within the limit Of seventy-hve per cent Of
capital to be quickly made as enefge9ts6o
arise. In addition to the guarantee fHnd fa.
ouired 1t Is proposed to provide o safety tund
for the immediate redemption Of tho ctsculae.
ing notes Of failed banks by imposing small
tax, say one-half Of one per cent upon tbe
average circulation Of each bank Until the
funds amounts to five per cent. OF the total or
culation outstanding.
Each national bank, except In case Of failed
bank shall redeem or retire its notes II the hrst
instance at its own ONCE or at agencies 70 DO
maintained on account OF deposits
Another very important feature Of this plan
is the exemption Of state banks from taxation
by the United States In cases whero 1t y s4own
to the satisfaction Of the secretary Of tie treas.
ury and comptroller OF the currency hS banks
claiming such exemption that they asre not
had outstanding their circulating nots exceed.
ing rs per cent OF their paid up and ugsmraHn
capital, that their stockholders ore individually
liable for the redemption OF their circulating,
notes TO the full extent Of their ownr7ship OF
stock; that tho liabilities Of said baah9 upon
their circulating notes constitutes undas their
statelaw first lien upon their afssei that
such banks have kept and main TUNED . graron
tee fund In United States lesal tender notes 10
Cluding treasury notes OF 1890 equal to thirty
per cent Of their outstanding circulnt!p$ notes
when presented at their principal or brahch or
fees.
conclude this communication folly appre-
ciating that the responsibility for all legislation
affecting the people Of the United Stetes rests
upon their Representatives In congrts3 ppd -
sufing them that whether In nocordSHs9 wit4
recommendations have made OK bob J ehaa
be glad to co operate in perfoeting Att7 lesaslo
tion that tends 70 the prosperity ind welfare Of
our country.
(Signed) GROVER CLEVELAND.
Deo ., 1904. EXECUTIVE MANs1cH.