Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1894-12-14

As II this were not bad enough we have
| by statutory declaration that II Is the
policy of the government. To maintain
the parity between gold and silver aided
| the force and momentum of this exhaust
ing process and added largely to the cur
| rency obligations claiming this peculiar
| gold redemption. Our small gold reserve
Is thus subject to a drain from every side,
| the demands that increase our danger
| also increase the necessity of protecting
this reserve against depletion. and 1t is
most unsatisfactory to know that the
| protection afforded il is only a temporary
| paliiation 1t is perfectly and palpably
| plain that the only way under present
! conditions by which this reserve, when
| dangerously depleted, can be repenished
is through the issue and sale of the bonds
OF the government for gold. and yet con-
gress has not only thus far declined to
authorize the issue of bonds best suited
10 such a purpose, but there seems a dis
! position in some quarters to deny both
the necessity and power for the issue of
| bonds at all. l can not for a moment be-
neve that any of our citizens are deliber-
ately willing that their government should
uefauIt In Its pecuniary obligations or
that us financial operations should be re-
duced to silver basis. At any rate I
should not feel that my duty was done
omitted any effort | could make to
avert such calamity. AS long, there
| fore. as no provision is made for the final
redemption or the putting aside for the
currency obligation now used to repeated
| ly and constantly draw from the govern
ment its gold, and as long as no better
authority for bond issues is allowed than
| at present exists, such authority will be
utilized whenever and as often as IL be-
| comes necessary to maintain a sufficient
| gold reserve and in abundant time to
save the credit of our country and make
| good the financial declarations of our gov
eminent.
CARLISLE TOLD 1T ALL.
The questions relating to our banks and
| currency are closely connected with the
| subject just referred to and they also
present some unsatisfactory features
| prominent among them are the lack of
| elasticity in our currency circulation and
| It's frequent concentration in financial
centers and when it is most needed In
| other parts of the country. The absolute
| enforcement of the government from the
| business of banking is the ideal relation
| ship of the government to the circulation
| of the currency of the country. This CON
dition can not be Immediately reached
| but as step in that direction and as a
| means OF securing a more elastic cur
| rency and obviating other objections to
| the present arrangement of the bank cir
| ation the secretary of the treasury
| presents in his report scheme for modi-
|
| viding for the issue of circulating notes
by state banks free from taxation, under
| certain limitations. The secretary eX-
| plains his plans plainly and it's ad-
vantages are developed by him with such
remarkable clearness that any effort on
my part to present argument in its sup
| port would be superfluous. | shall there
| fore, content myself with an unqualified
| Endorsement of the Secretarys proposed
| changes in the law and brief and i'm
| perfect statement of their prominent feat
| ures.
l. 1t is proposed to repeal all of the laws
| providing for the deposit of United States
| bonds as security for circulation; to per
init national banks to issue circulating
| notes not exceeding in amount 70 per cent.
of their paid-up and unimpaired capital,
providing they deposit with the govern
ment as guarantee fund in United States
| legal tender notes, including treasury
notes of 1890, sum of equal amount to 81
per cent. of the notes they desire to is
sue, this deposit to be maintained at all
times, but whenever any bank retires any
part of its circulation, proportionate
part of its guarantee fund shall be re-
turned to 1t to permit the secretary of the
treasury to prepare and keep on hand
ready for issue in case increase in
circulation is desired, blank national bank
notes for each bank having circulation,
and to repeal the provisions of the pres
ent law imposing limitations and restric-
TONS thus permitting such increase OF
reduction within the limit of the IS per
cent. of capital to be quickly made as
emergencies arise. In addition to the
guarantee fund required, it is proposed to
provide safety fund for the immediate
redemption of the circulating notes OF
failed banks by imposing a small annual
tax, say one-half of l per cent, upon the
| average circulation of each bank, until
the fund amounts TO per cent of the
total circulation outstanding.
When bank fails it's guarantee fund is
to be paid into this safety fund and its
| notes are to be redeemed. In the first
instance from such safety fund. thus
augmented. any impairment of such funo
| caused thereby to be made good from the
Immediately available cash assets of the
, said bank. and If these should be insult
fcient, such impairment to be made goot
by separate assessment among the othel
banks, their contributions constituting
, first lien upon the assets of the failed
, bank in favor of their contributing banks
INDIVIDUAL LIABILITY.
AS a further security Ii is contemplated
that the existing provisions fixing the in
| dividual liabilities of stockholders Is to b
= retained and the banks Indebtedness OF
account of it's circulating notes is to b.
( made n first lien on all its assets. Fo
! the purpose of meeting the expense o
Y printing notes, official supervision, can
| cellutlOn ana Otner ike charges, tner
r | shall be paid tax of say one-half of / pc
1 cent per annum on the average amount o
t | notes in circulation. 1t is further pro
g vided that there shall be no national ban
n notes issued of less denomination tina
S SO: that each ational bank, except in cas-
$ of failed bank, shall release or retir
its notes in the first instance at its ow
r office or at agencies to be originated b
/ 1t and so a fixed reserve may be main
o tained on account of deposits.
S EXEMPTION FROM TAXATION.
. Another very important feature of thi
= plan is the exemption of state banks fror
= taxation by the United States in case
= where ii is shown to the satisfaction {
a the secretary of the treasury and conn
- troler of the currency by banks claim
- ing such exemption, that they have nj
~ had outstanding their circulating note
q exceeding 20 per cent. of their paid-up an
~ unimpaired capital: that their stockholC
~ ers are individually liable for the +,
~ demption of their circulating notes to IL
~ full extent of their ownership of s, ocl
>, that the liability of said banks upon. The
" circulating notes constitutes under the
= state law n first lien upon their asset
that such banks have kept and mali
tanned guarantee fund in United Stat,
legal tender notes, including United Stat,
treasury notes of 1890, equal to 80 per cen
.e of their outstanding circulation note