Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1894-12-06
ran PRESIDENTS MESSAGE.

/ Il ILL AbAAgAA~AsAN@ - ~@~@fSN~@% -
President Cleveland has submitted
his annual message to congress. 1t
is lengthy document, and from the
standpoint of the gold-bug an able
one. He treats exhaustively Of our
foreign relations, touching Brazil,
Samoa, Germany, Mexico, Russia and
Turkey. He also speaks at length Of
our national finances, postal service,
the army and navy, Indians, pensions
and agricultural interests, as well as
the civil service and strikes. He
recommends a still further reduction
in the tariff schedule, and especially
desires free iron, coal and sugar
But that portion of his message which
most interests the people, is his rec
ommendation of currency reform
Tbs following extract shows his posi-
trn on that question:
ut is proposed to repeal all laws
providing for the deposit of United
States bonds as security for crcula-
ton; to permit national banks to issue
circulating notes not exceeding rs
per cent Of their paid up and unlm.
paired capital, provided they deposit
with the government as guarantee
fund in United States legal tender
notes, including treasury notes of
1890, a sum equal in amount to 30
par cent. of the notes they desire to
issue, this deposit to be maintained
at all times, but when ever any bank
retires any part of its circulation, a
proportional part Of its guarantee
fund shall be returned to it; to per-.
NIT the secretary of the treasury to
prepare and keep on hand, ready for
issue in case an increase III circulation
is desired, blank national bank rotes
for each bank having circulation, and
to repeal the provision of the present
law imposing limitations and restric-
tions upon banks desiring to reduce
their circulation, thus permitting such
increase or reduction within the limit
Of rs per cent, of capital, to be quickly
made as emergency may arise La adj
ditlon to the guarantee fund required
it is proposed to proylde safely fund
for the immediate redemption of the
circulation notes of failed banks, 10y
imposing a small annual tax. say one
half of per cent, upon the average
circulation of each bank until the
fund amounts to 8 per cent. of the to-
tai circulation outstanding. When a
bank fails its guarantee fund is to be
paid into this safety fund thus aug
mented; any impairment Of such
fund caused thereby to be made good |
from the Immediately available cash
assets of said bank, and if these
should be insufficient, such impair
ment to be made good by pro rata as
sessment among the other banks, their
contributions constituting a first lien
upon the assets of the failed bank in
favor of the contributing banks.
THAT each national bank, except in
case of failed bank, shall redeem
and retire its notes in the first in
stance at its own office or at agencies
to be designated by it, that no fixed
reserve used be maintained on &C.
count of deposits. Another very i'm
portant feature of this plan is the ex-
emption of state banks from taxation
by the United states, in cases where
1T is shown to the satisfaction Of the
secretary of the treasury and comp
troller OF the currency by banks
such exemption, that they +,
have not had outstanding their oircu-
lating notes exceeding rs per cent. Of
their paid up and unlmpaired capital;
that their stockholders are indlvidu-
ally liable for the redemption of their
notes to the full extent Of
the ownership of stock; that the liza
bility of such banks upon their circu-
Lifting notes constitutes under their
state law, a first lien upon their as
sets; that such banks have kept and
maintained a guarantee fund in Unit
ed States legal tender notes, lnclud-
ing treasury notes of 1890 equal to 20
per cent of their outstanding circula-
ting notes and that such banks have
promptly redeemed their circulating
notes, when presented at their princi
pal or branch Office" |-