The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-12-04

~
duty was done If omitted auy etl,;,i
could make TO avoid such ca.gmh,
As long, therefore, as no proyi.o Is mad.
for the ina. redemption or the ppts,,
aside OF the currency obligation ma,
used, and repeatedly aud constant,
draw from the government its god. and
as long as no better authority for bona
issues is allowed than at present e1.,,
such authority will DO utilized vbsr.
ever necessary TO maintain sulFcs,,
gold reserve. and IN abundan: Tina i,
save the credit of our country and m,ts
good the financial declarations OF on,
government.
THR CURRENCY SYSTEM.
Questions relating to our bank, and
currency are closely connected with ths
subject Just referred 10 and thsy ol,o
present some unsatisfactory tea,u,s,
Prominent among them are the .ack Al
elasticity in our currency circulation
and its frequent contraction IN
financial centers when it is mos, nesdsS
in other parts OF the country. In.
absolute enforcement OF the govern
rnent from the business Of banSip,,
tho ideal relationship OF the coyGrn
ment to the circulation OF the currencr
OF the country. This condition caprc,
be Immediately reached, but as A Sian
in that direction and as a mean, al
securing more elastic currepcr
and obviating othor objections To
the present arrangement OF bank cif,u.
lation, the secretary OF the treasury
presents in his report u scheme mod.
fying present banking laws and pro.
viding for the issue OF circulating and
providing for the issue Of circulating
notes by state banks free from taxation
under certain limitations The sect0.
tary explains his plan so plainly and II,
advantages are developed by him with
such remarkable clearness, that anv
effort on my part to present argument
in its support would be BupCrnuous |
shall therefore content myself with an
unqualified Endorsement OF tho secre.
tary's proposed changes in the law and
brief and imperfect statement OF their
prominent features.
II is proposed to repeal all lava pto.
viding for the deposit OF United States
bonds as security for circulation: 10
permit national banks to issue circulat.
ing notes not exceeding in amount Is
per cent OF their paid up and unim.
paired capital, provided they depos.
with the government, as a guarantee
fund, in United States legal tendeFao,e,,
including treasury notes Of 1870, sun
equal in amount to 30 per cent Of the
notes they desire to Issue. this depo.it
to be maintained at all times; bu.
whenever any bank retireS any part Of
its circulation proportionate part Of
It's guarantee fund shall be returned 10
it; to permit the secretary Of the
treasury to prepare and keep
ons hand ready for issue ia
case an increase in circulation
is desired, blank national bank note.
for each bank having circulation; aad |
to repeal the provisions Of the present
law imposing limitations and restrict.
ions upon banks desiring to reduce or
increase their circulation, thus permit.
ing such increase or reduction within
the limit OF seventy-fve per cent Of
capital to be quickly made as emergeu.
cies arise. In addition TO the guaran.
tee fund required, it is proposed to pro.
vide a safety fund for the immediate
redemption Of the circulating notes Of
failed banks by imposing small annual
tax, say oRe-half OF one per cent upon
the average circulation Of each bank
until the fund amounts TO five per cent
OF the total circulation outstanding.
When q bank fails its guarantee fund
Is to be paid into this satety fund, and
its notes are to be redeemed in the first
instance from such safety fund thus
augmented, impairment OF such
fund caused thereby to he made good
from the immediate cash assets oil
said bank, and If there should be
insufficient, such impairment to be
made good by pro rata assessment upon
the other banks, their contribu'
tons constituting first lien upon the
assets Of the failed bank. As alu'the'
security, it is contemplated tina. the
existing provision fixing the individual
liability OF stockholders is TO be
retained and the banks indebtedness
on account Of its circulating notes Is to
be made a first lien on all its assets
For tho purpose OF meeting the expense
OF printing notes, official supervision,
cancellation and other like charges, there
shall be imposed q tax OF say ons-haIi
OF l per cent per annum upon 'n'
average amount OF notea in circulation.
II is further provided that there snaA
be no national bank notes issued o. Z
less denomination than ten dollars; tnN
each national bank, except in case o.
failed bank, shall redeem or retire III
notes in the first instance at its office OF
at agencies to be designated By 1t, aaa
that no fixed reserve need be mnu'
tanned on account OF deposits. Another
very important feature OF the plan u
the exemption OF state banks from iai'
alton by the United States in case;
where it 10 shown to the satisfaction "
the secretary OF the treasury, and sG'
comptroller OF the currency BY PANS
claiming such exemption th& suey
have not had outstanding their cltcui,
lating notes except in rs per cent o.
their paid-up and unimpaired capita,
that their stockholders are iudtvtd9st!
liable for the redemption OF their cl'Ca'
lating notes to the full extent Of tneIt
ownership OF stock; that tho Liability VI
said banks upon their circulating nov.
constitute under their state law ui.
lien upon their assets; that such oan.
have kept aud maintained a GUARANTEES
fund in United States tender notes, W.
Guiding treasury notes OF 49, per es1'
equal to 40 per cent of their 0ut''snJI
ing circulating notes, and that suGa
banks have promptly redeemed sheIeT'
cutating notes when presented AZ tnH ,.
principal or branch offices. 1t IS quiz s
likely that this echeme may be use pa,t
amended in some OF its details pu.
am satisfied it furnishes a basis w,
very rrnnt imnrnyement In our pteseH'