Arizona weekly citizen., 1894-12-08

l could tRke to avoid sucn calamlty. As long, therefore, as no provision is made for the final redemption of our corrency obligations, ard as long as no better authority for a bond issues is made than at present exists, such sthor- ity will bo utilized whenever, and as i often, as it becomes necessary to msin- tain sufficint gold reserve and in abundant time to save the credit of the country and make good the financial obligations of our government. All questions relating to our bonds and currency are closely connected with the subject last referred to and | they also present some unsatisfactory features. Prominent among them are lack of elasticicity in our currency cir culations and it's frequent concentration iu financial centers, 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 of the gov erument to the circulation of the coun- try. This condition cannot be immedi- tely reached, but it is step in that | direction, and as @ means of securing more elastic currency and obviating all objections to the present arrangement of bank circulation.
 The secretary of the treasury pre- sents in his report scheme modifying the presents banking laws and provides for the issue of circulating notes, free from taxation, under certain limitations. The secretary explains his plan SO plain ly and it's advantage, as developed by him, with such remarkable clearness that any effort on my part to present an argument is it's support would be super fous. I shall, therefore, content myself with unquslife6ly endorsing the views of the secretary in the proposed changes in the laws.
 It is proposed to repeal sll laws pro- viding for a deposit of United States bonds as security for circulation and to permit national banks to issue clrcul- sting note, not exceeding the amount of seventy five per cent of ther paid up and uninpaired capital. provided they deposit with the government as guarantee fund in United States legal tenders, other notes, including treasury notes of 1890, a sum equal to the amount of 30 per cent of notes they desire to issue, this deposit to be maintained at all times. But when any bank retires any part of it's circulation, a proportionste amount of its guarantee fund shall be returned to it. In addition to the guarantee funds it is proposed to provide @ safety fund for the immediate redemption of the circulating notes of failed banks by imposing 8 small annual tax, say one- half of one per cent, on the average cir culation of each bank until the fund amounts to ivs per cent of the total circulation outstanding.
 When bank fails it's guarantee fund is to be paid into this safety fund, thus sugmentng any impsirement of said fund to be made good by the immediate va luable cash assets of said bank, and if these should be insufficient such impair ment to be made good by pro-rate assessment among the other banks, their contributions constituting first lien upon the assets of the failed bank in favor of the contributing banks. As 8 further security it is conten plated that the existing provision fixing the individual liability of stockholders IS to be sustained and banks indebtedness of account left to it's circulating notes, is to be made first lien on all it's assets. It further provides that there shall be no national bank notes issued of less denomination than ten dollars. Anoth- CT very important feature of this plan is the exempting of state banks from tax stion by the United States in cases where it is shown to the satisfaction of the Secretary of the Treasury and Con troller of Currency, by banks claiming such exemption, that they have not out II ceeding 75 per cent of their paid up and unimpsired capital; that their stock holders are individually liable for the redemption of their circulating notes to the full amount of their ownership of stock; that the liability of said banks, upon their circulating notes, constitut- ing under theIr statute laws,
 FIRST LIEN UPON THEIR ASSETS;
 that such banks have kept and man. tained guarantee fund in United States legal tender notes equal to thirty per cent of their outstanding circulating notes, and that such banks have prom ptly redeemed their circulating notes when presented at their principal or branch offices, It is quite likely that thls scheme may be usefully amended in some of it's details, but am satisfied it furnishes basis for very great inn provement of our present banking and currency system. Iu concluding thls communications and fully approaching the respOnsb blity of all legislation affecting the people of the United State rests upon their representatives in congress, and assuring them that whether in accordance with the recom- | mondstion l have made, or not, I shall | be free to cooperate in pefecting any legislation that can add the prosperity | and welfare of our country"
 GRovaR CrEvETAND
 HOUSE.
 WASHINGTON, Dec. 3.-The house was called to order promptly at noon. Many members desks were strewn with flow- CTS, and as one wit said. "Fiowers for the living and flowers for the dead" On the desk of ex-Speaker Reed was an