Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-12-03


upon INVESTIGATION. It Is believed. provo
10 De safe In nfiording complete Sc
CURLY TO the note holder and give 20
the business Interests Of the country
bank note issue responsive TO their
needs"
Continuing the comptroller says;
The profit upon the is1ue OF clrcula-
ton TO ,he banks by such change would
be so augmented that It is giving them
a franchise for which II Is suggested
. ney should he called upon 10 make
Nper return to the general govern
n %. This return should nos, however,
' m, 'nch character as to defeat the
u. ght IN the privilege given. The
=, - redemption Of the legal issues
treasury issues under the ,ct ut
10, ad the re-lsaulng instead VI can
collation. Of the Same must always ere
ate d'strust II the governments credit
abroad and at home So long as the
laws now upon the statute books re-
main unchanged.
The general government ought to be
Tree nom the direct issuing and ie-
ueenlng OF notes 10 pass as money
among the people. No government has
ever yet successfully engaged In 80
doing and the experience OF the United
states has proved no exception to the
rule The general cost and loss en-
tailed upon the government and the re-
peated periods OF uncertainty es 10 the
government credit an1 the stability of
our monetary system have been SO
great as IT, make the legal tender and
treasury Issues OF 1870 one II the
extraordinary burdens placed upUn the
people.
These issues ought TO be redeemed
and cancelled and the government thus
enabled 20 retire from the banking husi-
ness, n business for which IL w so
poorly equipped. Tho intention OF those
who FIRST authorized the legal teIdcr
issues was that II should so retire at
the earliest practicable moment, The
first congressional enactment signed by
President Grant after his Inauguration
as chief executive was one renseurting
the determination OF the government
to preserve unquestloned the public
faith. and the closing clause OF II was;
And the United states also solemnly
pledges Its faith 10 make provision at
the earliest practicable period for the
redemption Of United States notes IN
COIN
In the light of the present condition
Of the governments finances" the comp
troller continues, that which ought to
have been done when there was "a sur.
plus In the treasury cannot now be
undertaken and the same conditions
must continue to weaken the country's
unless means is devised for remov-
ing these issues from the channel Of
current redemption until such time as
the government finds itself In position
to do that which at first was the intcn-
tion OF all. gradually redeem and can
eel them. The ultimate redemption IN
coin OF course must all be upon the
government. but the embarrassment does
not arise from their ultimate. but from
their current redemption. II Is there
fore suggested that II congress shall
repeal the provisions Of the present act
! requiring the national banks to make
| deposit Of government bonds In order
TO secure circulating notes nnd sub
stitute therefor Il provision giving them
instead the right TO issue same against
their assets ana incorporate therein as
a part thereof that which is II pre-
requisite TO SO doing the banks be COM
pelled to deposit with the treasurer OF
the United States legal tenders or issues
under the act OF 1890 equal In amount
to the difference between the per-
centage OF their capital OF Issues
granted against their assets and the
total Of such capital stock The de-
poslts thus made ought to remain with
the treasurer until the banl, ceased,
either through voluntary or involuntary
liquidation TO do business and In
either case the government ought TO
then redeem aud cancel such treasury
issues deposited. As against this de-
post Of legal tenders and treasury notes
So made there should be Issued Ia the
banks dollar for dollar national bank
notes either OF the same or OF different
design MS might be deemed best The
percentage OF the bank notes Issued
against this deposit should be free from
any taxation imposed upon circulation
and ought to he such percentage az Is
deemed equitable To be used as a part
Of the banks legal reserve held against
deposits.
'.The government should net attempt
or in anywlse become responsible Tor
1 the current redemption Of these notes.
/ It's responsibility should end with Its
redemption OF the notes deposited to
/ SECURE such circulation when the bank
ceases 10 exist. ~ present current
redemption fund or Q per cent Of the
| outstanding circulation Is found SUE
/ 0clent, ana II Is probable that In the
| future no greater amount would be re-
nulred. The elasticity OF issue 10 the
| national bank circulation viii be found
| In the percentage Of issue against us
| sets subject 10 the necessary rate OF
| taxatlons and insured by an adequate
| safety fund to guarantee the mole hold
| ers against loss. The government VIII
| he aided. the bank given In exchange
/ 1 dollar for every dollar deposited.
| thus relieved OF the loss Incident 70
| deposlfiuR an amount of its capital
| stock IN excess OF the return In notes
granted II. No violent contraction Of
4 the currency would follow such a
/ COURSE, but whenever contraction oc-
curs Ii would be less gradual than AT
| other times was the expansion iuci-
! dent thereto. II Is suggested that az
Z q necessary element to the securing
/ ~ prnptr elasticity or issue In our bank
! nafe currency. section 3. act OF July
! 70 1892. regulating the requirement
ana Issuing Of circulation TO banks
vithin a iixed period 81 time, should
/ ~ repealed, and also that an amend
I nnenf should be made 70 the Jaw. neces-
/ eltttinr the bank keeping in the office
| ~ no comptroller % the currency suf-
| aeient amount OF bank notes as VIII en-
/ abIe them to secure circulation AZ once,
| Instead Of after q period OF delay.
congregations have been received from
naur Imminent sources that the whole
nu.siion OF a banking and currency
svsten ought 20 be referred BY con-
eress 10 q commission 10 be created by
iar appointed by the president. and
clothed with proper authority
"a commission, non-partisan IN its
character. composed Of men Of eminent
abilities. could unquestlenabiy devise
/ \ currency syNtem sound In ever part
ara one which would commend itself
"a every interest Of the country. II
/ .st,id largely take the question out OF
( n,iliics and have Il c0naidnred slnpiy IA
4 Erf- It.T 49,. lee