The Bolivar bulletin. (Bolivar, Tenn.) 1888-1946, 1894-12-07
SUBSCRIPTION: Sl.OO Per Year.

terniihation of the government TO meet, ss
agreed It's Pesuniary obligations. II would
have been we'll If III this emergency authority
had existed to issue the bonds Of the gov
ernment bearing low date uf interest and
maturing within short period, but the con-
gress having failed to confer such authority,
resort Was necessarily mad TO the resumption
act Of 1879, and pursuant to its provisions
bonds we're issued drawing interest at the rate
Of . per cent per annum and maturing ten
years after their issue, that being the short
est time authorized by the act. am glad TO
say, however that on the sale OF these bonds
the premium received operated to reduce the
rate of interest TO be paid by the government
to less than per cent. Nothing could lie
worse or further removed from sensible finance
that the relations existing between the cur
rency. The government has issued the gold
bonds for its redemption and the means which
must be resorted to for the purpose OF re-
plenishing such redemption fund when in
spired. Even if the claims upon this fund
were confined to the obligations originally in
tended and II the redemption OF these obliga-
tions meant their cancellation the fund would
be very small
But these obligations when read and redeem
cd in gold are not Cancelled but are reisSued
and may do duty several times by way Of draw
ing gold from the treasury thus we have an
endless chain Of operation constantly depict
pleting the treasury's gold and never near
final rest as if this was not bad enought we
have by a statuatory declaration that
IL Is the pelicy of the government
TO maintain the parity between gold and sill
YER, aided the force and momentum of this ex-
hauSting process, and added largely TO the cur
rency obligations claiming this peculiar geld
redemption our small gold reserve is the sub
ject to drain from every side.
The demands that increase our danger also
increase the necessity of protecting this re-
serve against depletion and it Is most unsrtis-
factory to know that tho protection afforded Is
n DprfPgtlY
and palpably plain that the only way under
present conditions by which this reserve when
dangerously depleted can be replenished is
through the issue ana sale of the bonds Of the
government gold. and yet congress has not
only thus far declined to authorize the issue of
bonds best suited TO such purpose, but there
seems diSpoSitionin some quarters to deny
both the necessity and power for the ISSUE OF
bonds at all / cannot for a mcment believe
that any of our citizens are deliberately will
ing that their government should default in its
pecuniary obligations or that it's financial OF
erations should be reduced TO silver basis.
At any rate l should not feel that my duty was
done If | omitted any effort could make to
avert such calamity. AS long therefore as no
provision is made for the scheme modifying
present banking laws and providing for the Is
sue OF circulating notes by state banks free
from taxation under certain limitations.
1t is proposed to repeal all laws providing
for the deposit OF United States bonds as secu-
rity for circulation to permit national banks
to issue circulating notes not exceeding in
amount seyenty-fivc per cent OF their paid-up
and impaired capital, provided they deposit
with the government as guarantee fund in
United States legal tender notes, including
treasury notes of 1898, q sum equal in amount
TO thirty per cent. of the notes they desire
to issue this deposit to be maintained at all
times. but when any bank rctircS any part of
its circulation proportiOnatc part of its guar
antec fund shall be returned 10 issue, to per-
nit the secretary of the treasury to- prepare
and keep on hand ready for issue in case an in
crease in circulation is desired blank national
notes for each bank having circulation and to
repeal the provisions of the present law inn
posing limitations and restrictions upon banks
desiring TO reduce or increase their circulation
thus permitting such increase or reduction
within the limit OF seventy-five per cent. OF
capital to be quickly made as emergencies
arise. In addition to the guarantee fund re-
Quired 1t is proposed to provide safety fund
for the immediate redemption OF the circu]at~
ing notes of failed banks by imposing q small
tax, say one-half OF per cent. upon the
average circulation OF each bank until the
funds amounts to five per cent. of the total cir
culation outstanding.
Each national bank except in case 0f a failed
bank shall redeem or retire its notes in the first
instance at its own Office at agencies 10 be
maintained on account OF deposits.
Another very important feature Of this plan
is the exemption of state banks from taxation |
by the United States in cases where it is shown
to the satisfaction of the secretary OF the treas
ury and comptroller of the currency BY banks |
claiming such exemption that they have not !
had outstanding their circulating note exceed |
ing 70 per cent OF their paid up and unimpaireG |
capital that their stockholders are individually
liable for the redemption of their circulating |
notes to the full extent Of their ownership of |
stock; that the liabilities OF said banks upon |
their circulating notes constitutes under their |
state law first lien upon their assets; that |
such banks have kept and maintained guaTan- |
tee fund in United States legal tender notes in |
cludtng treasury notes of 1890 equal 20 thirty |
per cent of their outstanding circulating notes |
when presented at their principal or branch Of
fees
/ conclude this communication fully apprc-
ciating that the responsibility for all legislation
affecting the people of the United States rests !
upon their representatives in congress and as
surfing them that whether in accordance with /
recommendations have made not, shall |
be glad to co operate in pertecting any legisla-
tion that tends to the prosperity and welfare CT /
our country.
(Signed) GROVER CLEVELAND
Dec. 9, 1894, EXECUTIVE MANSION.