The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-12-03
tender and treasury issues OF 1880 one OF
the extraordinary burdens placed on the
RE,DE,r,MED ISSUES

REDEEMED ISSUES.
''These issues ought to be redeemed and
cancelled and the government thus enabled
to retire from the banking business, busi-
ness for which il is poorly equipped The
intention OF those who first authorized the
legal-tender issues was that 1t should SO
retire at the earliest practicable moment
The first congressional enactment signed
by President Grant after his inauguration
as chief executive was one reasserting the
determination of the government 10 pre-
serve unquestioned the public faith, and
the closing clause OF Ii was: And the
United States also soiemnly pledges Its
faith to make provision at the earliest prac-
ticabie period the redemption OF United
states notes In coin.'
In the light of the present condition of
the governments finances, that which ought
to have been done when there was sur
plus in the Treasury cannot now be under
taken, and the same conditions must con-
tinue to weaken the countrys credit and
plague the lines OF business, unless means
is devised for removing these issues from
the channels of current redemption until
such time as the government nnds itself
in a position to do that which at nrst was
the intent of all-gradually redeem and
cancel them. The ultimate redemption OF
coin, of course, must all be on the govern
ment, but the embarrassment does not arise
from their ultimate. but from their current
redemption 1t is therefore suggested that
if Congress shall repeal the provisions of
the present act recurring the national banks
to make deposit of government bonds in
order 70 secure circulating notes, and sub
stitute therefor provision giving them
instead the right to Issue the same against
their assets, it incorporates therein, and as
part & tnsre9i b .nat S as oa ~ denost
with the Treasurer of the United states
legal tender issues, or issues under the
ence between the percentage of their capt
tai stock of issues granted against their
ha
with the Treasurer until the bank ceased,
either through voluntary or involuntary
liquidation, to do business, and in either
case the government ought to then redeem
and cancel such Treasury issues deposited.
As against this deposit of legal tender
be issued to the banks, dollar for dollar,
national bank notes. either of the same or
d Of S fSe ghb bank os nSas
against this deposit should be free from
any taxation imposed on circulation and
eouitabIe. to be used as a part of the
banks legal reserve held against deposits
GOVERNMENT RESPONSIBILITY
The government should not undertake or
in anywise become responsible for the cur
rent redemption of these notes. Its respon-
sibility should end with its redemption of
the notes deposited to secure such circu-
lation when the bank ceases 20 exist AT
present a current redemption fund of per
cent. of the outstanding circulation is found
sufficient and il is probable that in the
future no greater amount would be re-
quired. The elasticity OF issue in the ma
tional bank circulation will be found in the
percentage of issue against assets SUBJECT
to the necessary rate of taXatiOns and in
sured by an adequate safety fund TO guar
antee the note holders against loss. The
government will be aided ari the bank
given in exchange a dollar for every dollar
deposited, and thus relieved of the loss in
cident to depositing an amount OF its cap
ital stock in excess of the return In notes
granted it, No violent contraction of the
currency would follow such course bl.'
whatever contraction occurs 1t would os
not less gradual than at other times The
expansion incident thereto.
1T is suggested that as necessary ele
ment TO the securing of proper elasticity Of
issue in bank note currency Section
! act July u, 1892, regulating the retirement
and issuing of circulation to banks Within
| a fixed period of time should be repealed
and also that an amendment should bt
made to the law necessitating the banks
| keeping in the Office of the Controller O.
the Currency suTncient a.lount OF plani
| lation at once instead of after period o
! delay. ~,sk sssss-s
Suggestions have been received from
many eminent sources that the whole ques
| ton of a banking and currency ought to b'
| referred by Congress to a commission 4
| dent. and clothed with proper authority
a commission, nonpartisan in Its character
| composed of men of eminent abilities, coulC
| unquestionably devise currency system
| sound in every part and one which woulC
| commend itself TO every interest of th'
| country. 1t could largely take the ques
/ ton out of politics. and have Ii considered
| simply in its business aspects and upon it,
| merits; but If the present Congress is L
| enact a law on the subject appointment o
| a commission could avail nothing. If, how
| ever, nothing more definite can be accom-
| pl.shed the question of the creation of sucl
commission ought to be considered an'
/ acted upon"