The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1894-12-03

the comptroller continues, that which
ought 10 have been done when there
was "a surplus IN the trCnHury cannot
now be undertaken, and the same con-
ditions must continue 60 weaken the
country'a credit and plnguc the lines OF
buhineHa, unless means are devised Tor
removing these issues from the channel
OF current redemption until such time
ns The government findn Itself In POSI-
ton 10 do that which al irst was the
Intent OF all-grndually redeem and
cancel them. The ultimate redemption
OF coin, OF course, must all be upon the
government, but embarrassment does
not arise from their ultimate, but from
their current, redemption. IL is, there
fore, suggested that " congress shall
repeal the provisions Of the present act
requiring national banks to make a
deposit of government bonds In order
10 secure circulating notes, and Bubsti-
tute therefor a provision giving them
Instead the right 10 Issue The same
against their assets, and incorporate
theroin, and as part thereof, that as a
prerequisite 60 no doing, the banks be
compelled 10 deposit with the treasurer
of the United States legal tender Issues,
or Issues under the act OF 1890. equal In
amount 20 the difference between the
percentage OF their capital stock Of Is
sue granted against their assets and
the total OF such capital stock.
Deposits thus made ought 10 remain
with the treasurer until the bank has
ceased, either through voluntary or In
voluntary liquidation, 10 do business
and IN that case the government ought,
To redeem and cancel such treasury is
sues deposited. AS against this deposit
OF legal tender and treasury notes 30
made there should be issued 10 banks.
dollar for dollar, national bank notes,
either OF the same or different de-
sign as might be deemed best
THE government should not under
take, or In any wise become RESPONSE
bic for, the current redemption Of these
notes Its responsibility should end
with its redemption OF the notes depos-
tied to secure such circulation when n
bank censes To exist. Al present the
current redemption fund of per cent.
of outstanding circulation In found suf-
ficient, and II Is probable that in the
future no greater amount would be re-
quired. Elasticity Of issue In national
bank circulation will be found In the
per centage OF issue against assets, sub
1ect TO the necessary rate OF taXations,
and insured by an adequate safety fund
TO guarantee noteholders against loss.
The government will be aided. the bank
given III exchange uOllhr Tor uOlldf ue-
posted. and thus be relieved Of the
loss incident TO depositlng an amount OF
is capital stock IN excess of the re-
turn In notes granted II. No violent
contraction of the currency would fol-
low such a course, but whenever con-
traction occurs, Il would be not less
gradual than at other times the expan-
sion incident thereto"
Suggestions have been received from
many eminent sources that the whole
question of banking and currency sys-
tenn ought 90 be referred by congress
TO commission To be created by law,
appointed by the president. and clothed
with proper authority. The commits
sion, non-partisan in its character, COM
posed OF men of eminent abilities, could
unquestionably devise a currency sys-
tenn sound in every part, and one which
would commend itself TO every interest
of the country. II could largely take
the question out of politics and have
II considered simply in it's business as
poets and upon it's merits; but ~ the
present congress is 20 enact a law upon
the subject, the appointment of COM
mission could avail nothing. If, how
ever. nothing more definite can be ac-
eomplished the question OF the creation
of such a combination ought TO be con-
sidered and acted upon.