The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-05

1910 Inc lowest point IeACneu ny the
reserve since the resumption OF specie
payments was on the 9TH day OF August,
1894, when. by reason OF Withdrawals in
the redemption OF notes, II was reduced
TO $50, 1s9,5O0. After that date IL was
slowly replenished by voluntary ex-
changes Of gold coin for United States
notes by the banks and by email re-
ceipts OF gold in the payment OF dues to
the government until the l4th day OF
November, 1894, when it reached the
sum Of S6l. s7S,374.
In the meantime, however, the FREE
quent presentation OF notes for redemp-
ton in gold by individuals and institu-
tions not desiring it for export, clearly
indicating the existence Of feeling Of
uneasiness in the public mind, while
foreign exchange was almost constantly
at or near rate which made it more
profitable to export gold than to pur-
chase bills, and, consequently, with
drawals for shipment were daily
threatened. In addition to these causes
OF anxiety, the vast accumulation Of
money at our financial centres, and the
general depression in business which
prevailed in this country had so reduced
the rates OF discount that the induce.
ment to keep funds abroad where better
investments could be made were much
greater than in ordinary times, and this,
together with the other facts stated,
made it highly imprudent to neglect
any precaution which appeared neces.
sary to insure the safety Of our financial
position. In fact, some shipments OF
gold were actually made, and as the
season was approaching when in the
usual course OF trade and financial Cd.
erations large expectations nearly
always occur. 1t was considered abso.
lutelv necessary for the maintenance OF
the public credit and the continued ex.
ecution OF the monetary policy declared
by Congress in the act OF July IA, 1890,
and repealed in the act Of November 9,
1898, TO resort again to the issue OF
bonds.
The secretary proceeds with an elab-
crate and lengthy review OF the history
OF the workings Of the present currency
system, and an argument showing the
necessity OF reform, and concludes as
follows:
In view Of the foregoing considera-
tions. and many others that might be
urged in favor OF reorganization and
reformation OF our paper currency sys.
tenn, have prepared the outlines OF a
plan which, in my opinion, will relieve
the government to q great extent from
the burdens now imposed upon it, Sc.
cure within reasonable time safe and
elastic national and state bank currency
and result ultimately in the permanent
a. TTnt Notn
notes OF both classes. 1t ia, In brief, as
follows:
THE SCHEME.
l. Repeal all laws requiring or au-
thorizing the deposit OF United States
bonds as security for circulation.
Q. Permit national banks TO issue
notes to an amount not exceeding sew
enty.five percentum OF their paid-up
and unimpaired capital, but require
each bank before receiving notes to de.
post a guarantee fund, consisting OF
United States legal tender notes, in
Guiding treasury notes Of 1890 to the
amount OF thirty percentum upon the
circulating notes outstanding to be
maintained at all times. and whenever
bank retires its circulation. in whole
or in part, it's guarantee fund to be re-
turned to it in proportion to the amount
OF notes retired.
8. Retain the provision OF the law
making stockholders individually liable
and provide that the circulation notes
shall constitute first lien upon all the
assets OF the bank.
4. Impose tax OF one.half OF one per-
centum per annum, payable semi-aunu-
ally, upon the average amount OF notes
in circulation to defray the expenses Of
printing notes, official supervision. can
collation., etc.
8. No national bank note to be OF less
denomination than $40. and all notes OF
the same denomination to be uniform
in design; but banks desiring to redeem
their notes in gold may have them made
PAYABLE in that coin. The secretary OF
the treasury to have authority to pre-.
pare and keep on hand ready for issue
upon application a reserve Of blank
national bank notes for each banking
association having circulation.
9. Require each national banking as
ISOLATION to redeem its notes at its own
office, or at its own official agencies to
be designated by it.
7. To provide safety fund for the
immediate redemption OF the circulat-
ing notes OF failed banks, impose tax
per annum upon the average circulation
OF each bank until the fund amounts 10
five per centum OF the total circulation
outstanding. Require each new bank
and each bank taking out additional Cir
cuIation, to deposit its proper proper
ton OF this fund before receiving notes.
When bank fails, its guarantee fund
held on deposit to be paid into the sale.
ty fund and used In the redemption OF
lis notes, and IL this fund shall be i'm
paired BY the redemption OF the notes
OF failed national banks. and the imme.
diately available cash assets OF such
banks are insufficient 10 re.establish tho
funds, it shall at once be made good BY
pro rata assessments upon tho other
banks, according to tho amounts OF
their outstanding circulation; but there
shall be first lien upon all the assets
OF failed bank or banks, to reimburse
tho contributin. banks. Tho safety
fund NAV be invested in outstanding
United States bonds having the longest
time 10 run, the bonds and the interest
upon them to be held as part oil the fund
and sold when necessary to redeem
notes OF tailed banks.
S. Repeal the provisions oil the re-
organization aud extension act oil July
-, 1892, imposing limitations upon the
reduction and Increase oil national
banks circulation.
O. Repeal ali provisions oil the law re-