The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-04
STATE AND NATIONAL BANKS.
Means Proposed ON which Both May
Issue Money.

Questions relating 20 our banks and currency
arc closely connected With the subject just re-
IesFed 10, and they also present some gHsatis-
factory ieAtGres Prominent among them
the lack OF elasticity in our currency circula-
Ilon aud its frequent concentration IN financial
eeatrFs When ~ q most needed II other parts OF
tbs countrg. The absolute enforcement Ol the
government from the business 0t banking IL the
ideal relationship % the government 10 tae cir
culation OF the currency OF the country This
condition cannot be Immediately reached, bat
step in that direction and means OF Sc
curing more elastic currency aud oovlsEing
other objections 10 the present arrangements OF
bank circulation the secretary OF the treasury
presents IN his report scheme modifying
The present banking laws and PROVED
by state banks, free from taxation. un-
der certain limitations. The secretary ex-
plains his plan go plainly anl its advantage
are developed ~ him with such remarkaois
cieaFne,s that any efforl on my part 10 presens
an argument In Its support would be sDpeEhu-
Gus / shali. therefore, content myself wiki
unqualified indor.ement OF the secretary's pro-
posed changes In the lsw and brief aud I'M
perfect statement OF their prominent features
II IT, proposed - repeal ali laws providing for
the deposit Of United States bonds As security
for circulation, - permit national banks 10
issue circulating notes not exceeding IA amount
- per cent OF their Eaa-gp and uBimpalred
meut as guarantee fund IA United states
legal tender noses including treasury gotcs ot
is90, q sum OF equal amount 10 - Per cent OF
the notes they desire 30 issue. this deposit 10 te
maintained az all times, but when any bank re-
turns any part Of tgs clrcui stiea propartiouate
part Of it, guarantee fund shall be returned
u II. 20 permit the secretary OF the trea Dry %
prepare aud keep on hand ready for issue, 10
case an increase Ia circu alton l. desired, blank
national tank notes for each bank having cifca-
iation. ami TO repeal the provisions OF lac
present law imposing limitations and rcstric-
lions. thus permitting such increase or re nc
ton within the iimli OF the IS per cent OF CAP
itai 20 he quickly made IS emergencies arise Ia
addition 20 the guarantees tuu0 FcquHel, Il Ia
proposed 90 provide safety fund Tor The In
mediate redemption Of tie circulating notes OF
failed banks, by imposing small annual tax,
say -haif OF per cent upon the average cir
culation OF each tank until The fUAd smounln
20 5 per cent ol t6e total clrco atton outsiant-
ing When banS fails ITS guarantees fund ~ 70
Il paid into tbis SAFETY fund, aud LIS notes a9e
10 81 redeemed, in the efst instance from snrR
safety fnnd, thus Augmented, aay impairment
OF such fund caused thereby 70 DC made good
from the Immediately available cash assets Of
said baBk. aud, II these should % insufficient.
such impairment % Re made good by pro rata
assessment among other bank, their eoairbu-
tions constituting frst lien upon the assets az
the failed bank Bee favor Ot the contributing
bsnks As further serurity II + coniemp atea
thas tho existing provisions nX.ng TIE iodi-
xitual liability OF stockholders is 10 bc re-
tatuat snd the banks Indebtedness on account
OF tts circulating notes Is % he made nfsf lien
tie expense Of printing notcs. oilteial s0pvrNtr-
ton cancellation and ether iIko charges there
shall be paid tax Of per cent ger Anaam on
tie average amount az uptrs IN circulation -
= further provided that teere shall bs no ma
ftoaaf hsek notes issued Df less Ueunml n sftau
than $40: THAI each uatouai bank. except Ia
case ii tailed bank. shall release or retfe us
notes In the hrst instance AZ tts oWn once 90
through agencies to 10 originated by u, ana
nxet re.efye may be maintained on account o.
DEPOSITS .s-.,
l. fss exemption az state banks from taxation
by the United states IN eases WhsEs u = aao"n
Ia the satisfaction 81 the secretary ot the treas
tlrv aud comptroller "a tas currency, ~ oeAAs
claim ny sUch cxcnp yion. that taey hsNe nos
had eutstsndtuE thelr elrcu StlnE notes exceed
ine Is per cent ~ their paid up sud unfHlpa4fed
caUttsl. that taeir stick hclders are individually
nsbte ior tire redemption OF their circulating
notes - she fun extent % their oWnershlp 90
xfack. ana that tha liability 81 said eanks ug-on
tpsIr trsf.l sllns notes constitutes uHder theif
state Isv First .leu upon tueir Assetss tastslrn
49,. hava kors anl maintained a guarantee
tnna ia United Sgstes legal tsnaer notes lt'-
rsngfnr United states treasury notes a. t9sNf
,esl a. 81 tssr ysnt Of their outstanding csTrH-
f.sfne notes and thAtsuc bank haFu FfotaPtts
re-feeusd f1eir circulating notes &lch tfr-
srstsf st their principal ar orane1 o@lfes. - r.
a9asta likely EAaf IDS scheme nay 70 Ustintt!
ssuenaea Ia some OF Is dst&2sss hWt Al4 SANS
80 +. f1-ut4hes basis foF 4 veFy great Improve
Fnent IN cur pfesenS banking A@d currency sss-
ten. -s.-.s-.. s..,tv s,--.-
conclude This communication. tAtsY appfa-
fstfry thas the responsibility set al Sc isA'4oH
Affecting tha pecple Of tas L atseA Ststes Fssss
-, fhetr REPRESENTATIVES, Ia congress, sila
s.srsne tastsl slsat " hethct Ia aeeofeshtss NitA
rr.g istlors hsya shade or not. etas -S
80 81 cooperate in periectfeg any -esistailea
tat tends 20 The prosIastf a.sa ~s. sc p o-5
couatrF. 49, -.