The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1894-12-08

Questions reIStfnt % our banks ana currency
sre closely connected with the subject referred
20: they present some unsatisfactory features.
Prominent among them are the lack Of elasti-
city In our currency circulation and It's fire.
Quent concentration 10 anAucial centors when
tt 10 most needed In other parts Of the country.
Ths absolute divorcsment Of the sovernment
from the business Of banking II the ideal rela
tioushfp Of the government TO the ejaculation
Of the currency Of the country. This condition
cannot b Immediately reached but - . step In
that direction and as mesus Of securing .
tections 70 the present arrangement
Of bank circulation the secretary OF
the treasury presents his reported scheme
modifying present banking laws and
providing for the issue Of circulating notes by
state oenlgs free from taxation under certain
limitations The secretary explains his plan
10 plainly and its advantages ere developed by
him with such remarkable clesrness that any
effort on my part 70 present arguments IN its
support would be superhuous shall therefore
content myself with an unqualified indsrse-
ment Of the sscretsrys proposed changes IN
the law and brisf and imperfect statement Of
their promineat features
It is proposed 70 repeal All laws providing
for the deposit Of United States bonds - se-
curity for circulation; 70 permit national
banks 70 issue circulating notes not exceeding
IL amount u per cent Of their paid up end un-
impaired capital. provided they deposit with
The governments - guarantee fund In United
States legal tender nosss, including treasury
notes Of 100, sum equal In amount 70 % per
cent OF the notes they desire TO ISSUE this de-
posit 70 be maintained at all times. but when.
ever any bank retires any part Of It's circuls-
tion . proportional part Of fts guanutss
fund shall be returned 70 it 70 per-
mit the SECRETARY Of the treasury 70
prepare and keep on hand ready for Issue IN
case N increase In circulation u desired blank
natioaal bank notes for each bank having cir
culatiou. snd 70 repeal the prevision Of TIE
prssont lAw imposing limitations anA restrie-
tioas upou banks desiring to reduce or Increase
their circulation. thus permitting such increase
or REDUCTION within the'linit Of u per cent a
capital 10 b quickly made - emsrveacy may
arise In addition 70 The guarautse fund re-
Quired Il 10 proposed 70 provide . nafesy fund
for the immediate redemption Of the circulating
note. Of fsilsd banks ~ inpostns .
Of per cent upon ths average circulation a
each bank until the fund amounts 70 per cent
Of the total circulation outstanding. When .
bank fails its guarantee fund II 70 be paid
into Tits safety fund and iss notes are 70 b. rs-
deemed In the nrnt instance fro0 such safety
fund thus susnentsd: any impairment Of such
fund caused thereby 70 be made good from Tie
Immediately available cash assess Of naid
bank. and II these should be insumciens such
impairment TO be made good By prorsts 49,
o038U8ut omOu8 Inc Otuer O8ukA. tu8H
contributions constituting . nrst lien
upon the Assets Of the failed bank II
favor Of the contributing banks.
That each national bank. except in case Of .
failed oonk. shall redeem q rstire lie notes In
the nrst instance at it's own once or u agencies
70 b desfgnated BY IT, that no nxcd reserve
used ~ maintained on account of depositA
Another very important feature Of this plan 10
the exenption Of state bsnlka from taxation by
the United States In ssses where Il II shown
70 the satafactioa q Ne secretary of the treas
ury and comptroller Of the currency by banks
claiming such sxsnption that they have
not bad outstsnding thsirs circuissins
noees sxcesding n Per cent Of
. their psid up and unimpaired capital
that their ssockholders are Individually liable
for TIE redemption Of their circulating notes TO
The fun ezsent Of the ewnsrshlp Of stock; that
TIE liability n sueh banks upoa thstr circuist-
ing notes eonstitutss under their state Law Q
nrst lien upon their aasets; that such baaks
hsve ksps snd maintained guarantee fund II
treasury notes q leoo equal 70 - per cent. q
their outstanding circulating notes and thal
such banks have promptly redeemed their cir
culating notes wksn presented at their prinoi-
pai o. branch once. ~
Iconclude this communication. fully apprs.
cistlng that the responsibility for iegisistior
Affecting the peopls Of the United States restz
upon their representatives In the congress and
sssuring then that whether aecordance with
Recommendations have made or not shall
b glsd 70 eo-operate IN perfecting euy legis-
lation that tsnds 70 the prosperity and welfare
Of cur psopls
(Sisued) GnovEu CLgvRLAnn
.Txecutive Mansion, December 3 looA