Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1894-12-05

of the Untteo StaveS earnestly r6co4AIBen4
its prompt repeal
The Gold Reserve.
During the last month the gold reserves in
the treas SfY for the purpose OF redeeminy the
notes of the government circulating as money
IN the hands or the people became so reduced
and tss further depletion fu She near future
seemed So certain that in the exercise of
proper care for the public welfare IL became
necessary to repleniSh this reserve and thus
maintain popular faith in the Rbility and
determination OF the government to meet as
agreed its pscuniary obligations II would
have been we'll II in this emer Sencv authority
had existed to issue the bonds of the govern
meet bearing a low rate Of interest
| and maturing within a specfsf period
| but the congress having failed to confer stfeh
! suthority resort was necee' arl1y had to the
1 Resumption act OF 1875. and pursuant to its
provision bonds were issued drawing in terest
| at the rate Of five per cent per annum and
| rnaturin, ten years after their issuing. that
1 being the shortest time authorized by the act
| 1ar2 gla lad 10 say, however that on the sale of
| these bonds the premium tecei we'd operated to
| reduce the rate OF interest to be paid by the
| government TO less thar three per cent
| Nctbing could be worse or further removed
| from sensible finance than the relations ex
isting between the currency the government
has issued the gold held for its
redemption and the tseans which
| must be resorted to for the purpose Of Yeplen-
| isRiRg such redempt on fund when Impaired
| Even II the claims upon this fund were con-
| ffiisd 10 the obi .ation5 originally intended
and il the redemption OF these obliga tions
| meant their cancellations the fund would be
| very small But these obi sations when re.
ceived Snd redeemed in gold are not cancelled
| but are re-issued ard may do duty many times
| by way of drawfnr god from the treasury
| Thus we have an endless chain In operation
| constantly depicting tho trelsury's gold sfd
| never near final rest AS II this was not
tYarR 1NEArrr dor a1or f1fNr1
that it is the policy o. the government
to maintain the parity between gold ard sill :
yer aided the force and momentum OF the exi
| haustfug process and added lar ely to the cur
| rency obligati5ts Ginning this peculiar gold
| redemption. Our sm III gcld reserve is thus
| subject to draw from every Side The de.
| mands that increase our dan yer also incfease
| the necessity of protecting this reserve
! against depletion and 1T is most unsatisfactory
to know that the protection afforded is only q
Temporary pallfation I. is perfectly and pal,
patty Plain that the only way under present
conditions 6y which, this reserve ~ben
dangerously depleted can be replen-
| ished Is through the Issue and
sale Of the bonds OF the gov
| ernment for gold and yet congress has
| not only thus far declined to authorize the
| issue OF bonds best suited to such a purpose
| but there seems d disposition in some quar-
/ ters ID deny both the neces ,ity ana power for
| the issue of bonds at all cannot for q
| moment believe that afy Of eur citizens are
| deliberately willing that their g6yefunfent
| should default in its pecuniary obligations, or
| that its financial operations should be re-
duced to silver basis At any rate I
should not feel that my dirty was
| done il 1 omitted any effort 1 could
make to aFert such q 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 long no better authority for
bond issues is allowed than at present exists
| such authority will bs utilized whenever and
as often as 1t becomes necessary to maintain
| Q Sufficient yold reserve and in abundant time
to save the credit of Our country and make
| good the, financial declarations OF our govern
ment Question relatin to our banks drid
currency are closely connected with the sub
ject just referred to and they also present
| some unsatisfactory features
New Banking System Advocated.
Prominent among them are the lack of elias
| ticity in curreticy circulation and Its fire.
| quent concentration In fnahciaI centres when
| 1t is most needed in other parts of the Country.
| The absolute enforcement Of the government
| from the business of banking Is the ideal rela-
| tfofship Of the government to the circulation
| of the currency Of the country. This condi-
| tion cannot be Immediately reached but as q
| step In that direction and as q means Of secur-
| ing a moro elastic currency atd ebvfating
other objections to toe present srrshgs;
ment of bank circulation the secretary
| Of the treasury presents In his report a
scnefne modifying present bankin, laws and
| providing for the issue Of circulating notes by
| state banks free from taxation under certain
| limitations The secretary explains his plan
| SO plainly and its advaftagss are developed by
him with such remarkable clearn6ss tbGt any
| EFFORT on my part to present arguments In Its
| stpports would be surpuhous shall there
fore content myself with On unqualified in
1 ~ ha arES rsTNT1naad
| changes In the law and a brief and Imperfect
| statement Of their prominent features
1t Is proposed to repeal all laws providing
for the deposit of United States bonds as Sc
curity fer circulation to permit national
banks to ISSUE circulating notes not exceeding
| in amount IS per cent of thsif paid up and un-
| impaired capital provided they deposit with
| the government as a guarantee fund In United
| States legal tender notes including treasury
| notes OF 1890. q sum equal in amount to 81
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 cir
| culation . proportional part of its guar
| antee fund shall be returned to 1t: to
permit the secretary OF the treasury
to prepare and keep on hand ready for issue
| in case an increase in circulation fs desired
| blank national bank notes for each bank haV-
| ing circulation and to repeal the provisions
| Of the present law imposing limitations and re-
| strictions upon banks desiring to reduce or In
| crease their ejaculation, thus permitting such
| Increase reduction within the limit OF
| tseventy-hve per cent Of capital to be quickly
| made as emer {ency arise In addition to the
guarantee fund required It is proposed to pro-
| vide q safety fund for the Immediate redemD-
| t1on OF the circulating notes OF failed banks
by imposing a small annual tax say one half
| OF one per cent upon the avcra ge circulation
of each bank until the fund amounts to i've
per cent Of the total circulation outstanding.
| When . bank fails its guarantee fund IS to be
| paid into this safety funds and its notes are
to be redeemed In the first instance from such
| safety fnnd thus au mentei: any impairment
| Of such fund caused thereby to be made good
from the Immediately available cash assets OF
said bank, and IL these should be insufficient
| auch impairment to be made good by pro-
rata assessment among the other banks, thei
| contributions constituting q first lien upon
| the as sets of the failed bank in favor of the
| contr butfng banks
As q further security it is contemplate q
that the existing proposition fixing the indi-
vidual liability OF stockholders Is to be re
tanned and the banks Indebtedness on ac-
count OF its cfrcuiatin notes is to be made q
nrst , lien on on all its asset; Fo. the purpose O.
Gals supervision cancellation and other nk
charges there shall be impose q tax Of say
average amount Of notes in Circulation Il Is
further provided that there shall b.
no national bank notes issued OF
q less denomination than ten dollars
that each national bank, except in case oil 2
failed bank shall redeem or retire its notes in
the first instance at its own ONCE or al
agencies to be de- esignated by It. that no d I ed
reserve used be maintained on account OF de
posts.
Another very important feature OF this plan
Is the exemption of state banks from taxa
tion by the United States in cases where 1t is
shown to the satisfaction of the secretary o
the treasury and comptroller of the currency,
by banks claiming such exemption. that the
have not had outstanding their circulating
notes exceeding seventy-fve per cent o
their paid up and unim paired capita
that their stockholders are individually liable
for the redemption OF their circulating note.
to the full extent of the ownership OF stock
that the liability Of such banks upon
their circulating notes constitutes
under their state law first lien upor
| their assets: that such banks have
| kept and maintained guarantees
fund In United States legal tender notes in
cludin treasury notes OF 1890 equal TO thirty
per cent OF their OUTSTANDING circulating
notes, and that such have promptly redeemed
| their circulating notes when presented 81
| their prfncip pal or branch ONCE
L IN fa nrrffa IfkeIv he