Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-12-04
...x.,1c AND CURRENCY.
go. the idea Advanced ny
i''s COMPTROLLER Eclsles.

question relating to our banks
ins ,,r,yretcy are closely connected
.ha NJ subject Just referred 10. and
w. sis, prcsent some unsatisfactory
,nv Prominent among them are
,ss nek ~ elasticity ia our currency
.r.nlatlon. and It's frequent concen-
..s,inn In financial centers when 1t is
nsst needed IN other parts Of tho
s,ntry. The absolute enforcement of
~ royernment from the business Of
h,nking Is the Ideal relationship OF the
serfrnment b the circulation OF the
,urfsicy of the country This condition
snnot be Immediately reached. but
step ia that direction. aud
& means OF securing more elastic
.r,snry. and obvlnting other obiec-
,nss 10 the present arrangement of
mi circulation, the secretary Of the
nsasnry presents In his report 4
sbeme modifying present banking
SWs ANA providing for the issue of
Sculating notes by state banks free
Ann taxation. under certain limita-
,ans The secretary explains his
KIN % plainly, and its advantages
~ developed by him with such re-
markable ciearness, that any effort on
M mart to present an argument in its
ssnport would be superfluous. 1 shall,
Aerefore, content myself with an
unoraliiied Endorsement OF the Sec
rstary's proposed changes In the law,
IA a brief and imperfect statement
n their prominent features.
II Is proposed 10 repeal all laws pro-
yiing for the deposit of United
safes bonds as security for circula-
tl1a TO permit national banks to issue
tkculatlng notes not exceeding in
AMOUNT 20 per cent Of their paid up
I'd unimpaired capieil. provided they
'ddoosit with the government rs a
euafantee fund in United States legal
ilnder, not including treasury notes
| 4 1890, sum equal in 2mOunt to 30
IA cent OF the notes they desire to
,sue this deposit to be maintained NJ
N times; but whenever any bank re-
tires any part of its circulation pro-
,rtioual part of its guarantee fund
ian be returned to Il; to permit the
secretary of the treasury to prepare
ma keep ON hand. ready for issue In
case 40 increase in circulation Is desir-
abs.blank national bank notes for each
bank having circulation, and To re-
real the provisions OF the present law
imposing limitations and restrictions
upon banks desiring TO reduce or in
crease their circulation, thus per-
hitting such increase or reduction
4 within the limit of 10 rer cent Of cap
\ Ial to be quickly made US emergen-
4 DIS arise.
/ In addition to the guarantee fund re-
/ ;sred, II Ia proposed to pro-
4 Iide safety fund for the Immediate
fvienption of circulating notes OF
liled banks by imposing "a small an
iusl tax say Of IL Of per cent, upon
~ average circulation OF each bank
NIL the funds amount 10 per cent
4 he total circulation outstanding.
WIN bank fails It's guarantee fund
sr BE- paid into this safety fund and
y rotes are TO be redeemed IN the
M Instance from such safety fund,
~ augmented. any impairment of
81 hlnd caused thereby 10 be made
f~ from the immediate available
90 assets Of said bunk, and IL these
odd be insufficient, such impair
h.at 10 be made good by prorata as
Ssznent among the other banks. their
cnlnbuuons constituting q first lien
rpon the assets of the failed bank In
ilsor OF the contributing banks, AS
further security II Is contemplated
Dat the existing provision hiking the
Adividual liability of stockholders Is
y be retained, and the banks indept-
ea1tss on account OF Its circulation
ANes is to be made first lien on all
M assets For the purpose Of meeting
ue expense Of printing notes, official
shpension, cancellation and other like
4 eMrges, there shall be imposed tax
usay ~ Of per cent per annum upon
lhe average amount Of notes IN clrcu-
eilon, II is further provided that there
Mall be no national bank notes Issued
I y less denomination than ten dol
an that each national bank, except
u case Of failed bank, shall redeem
y retire It's notes In the first Instance
y Us office or at agencies to be desig'
Ated by 1t: and that no fixed reserve
= haintained on account Of depoilts.
Another very important feature OF
,a' plan Is the exemption of state
psks rom taxation by the United
s'ales In cases where II Is shown to
ne Satisfaction of the secretary OF the
Nasury and comptroller of the cur
ugy BY banks claiming such exempt
"a INIT they have not had outstand'
y their circulating notes exceeding
pr cent OF their paid up and un'
@pairad capital: that their stoclShoid
an Individually liable for the re-
,Nluon OF their circulating notes Il
/ 'Nfi fNttHA OF lHttT Nv lti alAAF ~
a9S that the liability of said banks
.y,h Their circulating notes constitutes
.n9sr their state law. a first lein upor
at assets; that such banks nav
~, and maintained a guarantee funt
United States legal tender notes
a-'snaing treasury notes OF 1880, equa
per cent OF their outstanding
aiaung notes, and that such bank
In,e promptly redeemed their clrcu
,tns notes when presented at thel
Niacpal or branch offices.
=. y quite likely that this schem
~ ne usefully amended In some o
ueAus but l am satisfied IL fur
n r,,.ss basis for a very great i'm
u,,ent In our present banking am
4,ieney system.
ANN ssoheinde this communication. full,
"A nf,,ssating that the responsibility 70
~ rsislation affecting the people Q
rlt.s..,rd states rests upon their rep
~ ~ suoh IN tho congress and assuI
via 'usm that whether In accordanc
-, n Recommendations ! have made o
p-e,. hhan be glad TO cooperate }
meung any legislation that tend
4 0untry' anu Weiiare Oh ou
4 Fsnsd GROVER CLEVELAND.
iFe Mansion. December o, 1Ss