The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-05

safety fund and used in the redemp-
ton of its notes and if such fund shall
be impaired by the redemption of the
notes of the failed national banks and
the immediate available cash assets of
such banks are insufficient to estab-
lish the fund, it shall at once be made
good by pro rata assessments upon the
other banks, according to the amounts
of their outstanding circulation But
there shall be a first lien upon all as
sets of failed banks or banks to re-
imburse the contributing banks The
safety fund may be invested in out
standing United States bonds having
the longest time to run. The bonds
and the interest upon them to be sold
as part of the fund and sold when
necessary to redeem notes of failed
banks
Psychological the provisions of the
reorganization and extension act of
July II, 1892, imposing limitations upon
the reduction and increase of national
bank currency
Ninth-Repeal all provisions of the
law requiring banks to keep a reserve
on account of deposits.
Tenth-The secretary of the treasury
may, in his discretion, use any surplus
revenue of the United States in the re-
demption and retirement of United
States legal tender notes, but such re-
demption shall not, in the aggregate,
exceed an amount equal to 20 per cent
of the additional circulation taken out
by national and state bonds under the
system herein proposed.
Observation-Disclosures notes issued
by a banking corporation duly organ
lied under the laws of any state, and
which transacts no other than bank
ing business, shall be exempt from
taxation under the laws of the United
States when it is shown to the salts
faction of the secretary of the treasury
and the comptroller of the currency
ID that such bank has at no time had
outstanding its circulating notes in eX-
cess of IS per centum Of its paid-up
and unimpaired capital; ~ that its
stockholders are individually liable for
the redemption of its circulating notes
to the full extent of their ownership
of stock; 90 that the circulating notes
constitute by law first lien upon all
the assets of the bank; a. that the
bank at all times keep the guarantee
fund in United States legal tender
notes, including treasury notes of 1890,
equal to so per centum of its outstand-
ing circulating notes, and (0 that it
has promptly redeemed its notes on
demand at its principal office or at one
or more of its branch offices, if it has
branches.
Twelfth-The secretary of the treas
ury may, under proper rules and regu-
lations to be established by him, per-
NIT state banks to procure and use in
the preparation of their notes the dis
tipctive paper used in printing United
States securities; but no state bank
shall print or engrave its notes in simil-
itude Of United States note or GER
tificate or national bank note.
Whatever may be the objections to
the issue and circulation of United
States legal tender paper upon either
constitutional or financial grounds, it
has become so incorporated into our
currency system and constitutes so
large a part of our active circulation
that it could not be suddenly with
drawn without producing, in the pres
ent state of our laws, considerable dis
turbance in the financial operations of
the government as we'll as the bust
ness of the people, and, therefore, the
plan now suggested provides for it's
gradual retirement by the use of sur
plus revenues hereafter received,
process which will probably require
several years for its completion. AS
these notes cannot be retired until
other forms of currency to an equal
have taken their place, there
will be neither a forced contraction nor
of the circulation on account
of the change.
Increase the Use of silver.
The experience of this country I'M
der the act of February s, 1874, which
limited silver certificates to denomina-
lions of $40 and under the act of Aug
ust, 4, 1886, which removed that re-
justifies the belief that the
change now proposed will result in a
greatly increased use of silver coins
and certificates, and that they would
be much less likely to return to and
remain in the treasury that at pres
emit. At the time of the passing of the
last act referred to permitting the is
sue of silver dollars not represented by
in denominations of one,
two and five dollars, standard silver
dollars had accumulated in the treas
ury to the amount of $50, $685.
IF this country is to utilize TO the
fullest extent the opportunities offered
by its geographical position, natural
resources and the mechanical skill and
the commercial enterprise of it's peo-
pie, it must adhere steadfastly and ag-
gressively to the revenue policy inang- |
lrated by the present Congress at its
asst session.