Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1894-12-04

tEsteo states ! earnestly recommend its
prompt repeal
ISSUANCE OF BONDS.
only Way. Under Present Conditions. OF
Repienishing Gold Reserve.
During tn, last month the gold reserve in
the treasury for thu purpose OF redeeming the
note, OF The government circulating now in
the hands of tine people b came 80 reduced AMI
its further depletion in the hear future seemed
SO certain That IN the cxerci e of proper care
replenisb The reserve aud thus maintain popu-
lar faith in the ability and determination of
airy obligations 1t would have been wei If in
this emergency authority had existed TO
issue the bonds OF the government
but the c5ngre,s having failed I, confer such
authority, resort was neces.arily had TO the
visions bonds were issued drawing interest Ut
the rate OF per cent. per annum aud maierins
ten years atCer their issue, that b ing tue
shortest time authoriz d by the act l am cisd
10 say. however. that on ih- sale Of these bonds
the premium received operated To reduce the
TO less than per cent.
Notaing could be worse or further removed
from sensible iinancc than Ihe relations
ornms nj has issued. the GOLD held
for its REDEEM q on. and the m..a which
must lie resor'ei to for the pnrpo.c Of replcn-
ishing such redemption fund when impaired.
Even If he claims upon this fund were confined
Ia the Obligations originally intended ana II the
cancellation, the fund wodld be very small.
But these obligations when received and re
issued. and NAV do duty II my times by way OF
drawing gold from the treasury. Thus ". hnv.
an endless cham in operation constantly depict
rest. A. if this was not bad enough. We
have by q statutory declaration that II
Is the policy OF the government TO
I'M rfp
aided the force ard momentum of TIN. exhaust
ing process and added largely TO tine currency
Obligations claiming this peculiar gold redemp-
ton. Our small gold res rye Is thus subject q
draiu FROM every side. The demand, that in
crease our danger also increase the necess "
Of protecting this reserve a1ainst depletion
end it Is most satisfactory 10 know that the
protection aifOrde l. only n temper AIRY pallia-
ton. II l. perfectly and TslIably plain that the
only way under present conditions 10y which
this reserve wnen dangerously depleted.
. ean sr rep pie tho - ihroSsh the Is
government for gold; ana yet congress has not
only thus far declined to q -thorize the issue OF
tond, best suited to such purpose. but there
seems dlsros ton IN some quarters 20 deny
both the necessity and power for the issue OF
londs at all
VII: Utilize the Authorize.
cannot for moment believe that any OF
our citizens are del b.raie,y W ling al their
government shou default IN its pccuniary OBJ
legations ort at it, financial operations should
DC reduced 10 a silver basis. At any ate ]
siould not feel that my du was done II
! omitted any effo-t ! could ma e 10
avert such talsmiiy. As long there
lore. as no pro .is,on j. made for the
final redemption the putting aside of ths
currency obligation now used 20 repeatedly
and constantly draw iron the government it,
gold and IA long as no better All horgfy for
bond ISSUES il allowed than al present exists
such authority will bc utilized whenever and
as often a. II becomes necessary TO maintain n
sufficient gold reserve. and III abundant tins 10
save the credit OF our country and make good
the financial declarations 81 our COVE nment
currency are closely connected with
the subject Just referred TO and they
also present some unsat s.actory features
PROMINENT among thctn are the lack OF elias
uCity IL our currency circulation aud it, fire.
quent concentration in financial ceuters when
1t Is most needed ia Other parts of the counir y.
The absolute divorccE:nt OF the government
from the business OF banking il the iieal rcla-
tionship oi the govcrnmeat u the circulation
OF the currency VI the country. This condition
cannot lie ii9rnedlately Tcac .icd; but a. "A step
in that direct n and IA means of securing a
more elastic Currency ana obviatinG other OBJ
bank circulation. the secretary OF
the treasury presents in his report a
scheme mpdif wing present barking laws and
providing for IN issue Of circulating notes by
state banks, free from taxa ion under certain
limitations. The sore ary explains bis y an
50 plainly and lis advantages are developed 10y
him with sucn remarkable clearness tia any
effort on my part TO pr sent argument in iis
support would be superiiuou-. shall therefore
co tent myse with an unqualified endorse
ment OF he se.retary's proposed changes in
the law and b lei and imperfect
stateme Il OF their prominent features
II is proposed to repeal al laws providing for
the post o. United States bonds a. security
Tor circuiition; io permit national banks to
issue circulating notes not ex ,reding in amount
80 per celt of iis'ir pait-ap and unimpaired
capital, provided IN " deposit with tine gov
eminent, a. "A guarantee fund. in United
state, legal tended NOES. including treasury
notes Of 1871 IA sum equal in amount t. - per
cent of the notes they desire 20 issue this de
post tn lie maintained at ali times. but W hem
T.
ton a proporsio sal part of its guarantee fund
shall be returned DO it; % permit
prepare and Keep on hand ready for issue in
cai,c AN Increase IN circulation - desired blank
cuiaiion and to repeal the provisions OF the
present law imposing limitations and rc.fric
., IONS, upon oahAs oesirhx 70 reduce OF increase
Their cIrcuiatlon. thus permitting such increase
or reduction within tn. Limit q. - per cent of
capital TO be quickly mad. emergencies
ai'se.
Tor n safety Fund.
In addition to the guarantee fund re-
CURED II ~ proposed To provids sif.ty
fund or the immediate redemption 81
the circulating notes of failed banks 10y
imposing q small annual tax say. one half
OF one PSF cens.. upon the average circulation
Of each bank until the fund amounts 10 per
cent of the Ia al circulation out LANDING
When a bank fails. iis guarantee fund ~ 10 he
paid into this safety fund an its notes are 10
tie redeemed il the iirs; instance from such
safety fund thus augmented. any impairment
of such fund caused hereby 10 be made good
lroiii tu' ihHeu-aeiy =, aiioie cash assets OF
said bank and II these hould he Insufficient.
such impairment; To- be made good by proraia
assessment among the other hanks, their con
tribu'ions co..s.if u'ing first lien
upon the, assets Of the failed hank Ia
favor Of the mtrihuting banks.
rs further security II j. contemplated that
the existing provision fixing the individual
Inability of Stockholders IL to be retained and
the banks indebtedness, account of it, cir
ciilating notes - to he maze first lien ON all
its Assets. For the purpose OF meeting the .x-
p,tis'. 81 printing notes. official supervision.
cancellation and other like charges. there sha ]
be paid a tax. say. onchaf of one per cent. per
annuin. on the average smount of notes
IN circulation. II IL further provides
that there shall be no national hank
notes issued of less denomination than $40.
that each national bank except IN cas- Of a
failed bans. sh II redeem or retire it, note. m
the first instance at II own Office agencies To
lie designated v q. and that no fixed r serve
N al no ,i,,.d an, .,.,.n,,,,