New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-04

H"t arc reissued and may do duty many times
by way of drawing gold from the treasury
Thus we have an endless chain IN operation
constantly depicting the Treasury's gold and
never near final rest AS II this was not
had enough, we have, by statutory declaration
that It Is the policy Of the Government 10 man,
tain the parity between gold and silver. aided
the force and momentum of this exhausung
nrocess and added largely to the currency opil-
cations claiming this peculiar gold redemption
Our small gold reserve Is thus subject to drain
from every side. The demands that increase
our danger also increase the necessity o. pro-
tecting this reserve against depletion, ana II -
most unsatisfactory to know that the protec-
ton afforded is only temporary 'paliiation.
II is perfectly and palpably plain that the only
vov under present conditions by which this re-
serve when dangerously depleted, can be replen-
ishcd Is through the issue ana sale or the ponos
OF the Government for god and yet congress
has not only thus far declined to autnorize the
issue Of bonds best suited to such purpose, out
there seems disposition In some quarters 10
deny both the necessity and power Tor the issue
Of bonds at all. -
T cannot for a moment believe that any OF our
citizens are deliberately willing that their Cow
eminent should default in its pecuniary opiiga-
tons or that its financial operations snoud De
reduced 10 a silver basis. At any rate should
not feel that my duty was done II omtteo
any effort could make tc avert SUCH calan-
nv AS long therefore. as no provision is maze
FOR the final redemption or the putting aslde OF
the currency obligation now used to repeateoiy
and constantly draw from the Government us
goId and az long as no better authority for bond
issues is allowed than a present exists such au-
thority Will be utilized whenever and as often
as II becomes necessary to maintain a sufhcient
cold reserve. and in abundant time to save the
credit of our country. and make good the man.
cial declarations of our Government.
Questions relating to our banks ana currency
are closely connected with the subject just re-
ferred TO- and they also present some unsatis-
factory features Prominent among them are
the lack of elasticity In our currency circulatioh
and its frequent concentration in nnanciaI
centres when II is rrost needed IN otner parts VI
the country
BANK CIRCULATION
The absolute enforcement OF the Government
from the business of banking is the ideal rela-
tionshp of the Government to the circulation OF
the currency OF the country. This cond:tioh can
not bc Immediately he'd; but as step III 'ha'
direction and as a means OF securing more
elastic currency. and obviating other objections
to the present arrangement OF bank circulation
the Secretary Of the Treasury presents In MS
report a scheme modifying present banking laws
and provding for the issue OF circulating notes
bv state banks free from taxation, under GER
tain limitations.
The Secretary explains his plan so plainly and
its advantages are developed by him with such
reuarlable clearness that any effort on my
par; To present argument In It's support wouiu
be superfiuous ] shall. therefore. content mysel
with an unqualified Endorsement OF the Secre-
tary's proposed changes in the law and oriei
and imperfect statement OF their prominent
features. ,,, <
II is proposed TO repeal all laws providing for
the deposit of United States bonds as security
for circulation to permit National banks TO issue
circulating notes not exceeding IN aihou"l :"
per cent OF their paid-up and unimpa!red capi-
tai provided they deposit with the Government,
as guarantee fund. in United states !esal 'e"uer
notes including Treasury notes or 1884, d sum
equal in amount to 30 per ce II OF the no.es my
desire to issue this deposit to be maintained al
all times but whenever any bank retires any
part ~ its circulation proportional part OF i,s
guarantee fund shall be returned TO IL. 20 perm. ma
the Secretary of the Treasury 10 prepare anu
keep on hand ready for issue In case an increase
I'm circulation Is desired blank National Dank notes
for each bank having circulation. ana 10 repea i
the provisions Of the present law imposing nHii-
tatlons and restrictions on banks desiring 70
reduce or increase their circuation-thus PEI
hitting such increase or reduction WITHIN me
limit Of - per cent OF capital 10 De quchs "'aue
as emergencies arise 1.
In addition &c the guarantee FUND required
Is proposed provide a safety fund for the
immediate redemption OF the circulating notes
OF failed banks. by imposing small annuai
tax say one-half OF per cent. upon the aver,
age circulation OF each bank until the fund
amounts to 5 per cen: OF the total circulation
| outstanding When a bank fails Its guarantee
fund IL TO be paid into this safety fund and It's
notes are 10 be redeemed in the first instance
from such safety fund thus augmented-any
impairment OF such fund caused thereby 10 De
made good from the immediate available casn
assets OF said bank. and II these should De IN
sufficient such impairment TO be made good py
pro rata assessment among the other banks
their contributions constituting nrst lien upon
the assets OF the failed bank in favor OF the
| contributing banks. AS a further security II Is
| contemplated that the existing provision fixing
the individual liability OF stockholders Is to be
retained and the banks Indebtedness on ac-
count OF it's circulating notes Is TO be made
| first lien on all its assets.
For the purpose Of meeting the expense or
printing notes. official supervision. cancellation
and other like charges. there shall be imposed
o TAX Of saw one-half OF / per cent per an
mum upon the average amount OF notes In cir
culaton.
Il il further provided that there shall be no
National bank notes issued OF less denomina-
ton than SO: that eacn National bank, except
IN case OF a failed bank. shall redeem or retire
its notes in the first instance az its own ONCE
or NJ agencies he designated by IT, and that
no fixed reserve need be maintained on account
OF deposits.
STATE BANK TAXATION.