Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1894-12-03

cIal csnturs when it ia must neeIUd Ia
other parts Of the country. Tue nbt0-
Lutte enforcement VI the governments
irOm the business Of banking is tho
Ideal relationship Of the government 10
the circulation OF tns currency OF the
country. This condition cannot DO
Immediately reached, tut asa tisp 10
that Direction nnd 80 q means OF secut-
ing more elastic currency and Oh
waiting other objections 10 tho
present. Arrangement Of bank
circulation, the secretary OF the
treasury presents Ia his report a
scheme modifying the present banking
laws and providing for the issue Oi cir.
culating notes by state banks free from
taKauon under csrtain Limitations.
The Secretary explains bis plan so
plainly and It's advantages are de-
veloped by him with such remarkabls
cloaruoss that any effort on my part
10 present an argument In itg tuppOfs
would be- aupefiiuOuf. 1 shall thefo.
fore content myself with an unquAll.
hei Enforcement OF the SocteIafy's
proposed ohangtt a the law auda brief
anu imperfect stplemsnt oil tholr prom.
inuut features.
Its proposed 10 repeal all laws pro.
ylding Tor the deposit of United States
bonds as security for circulation; ~
permit national banks 10 issue oirouist.
iug nOtos nog exceeding ia amount 70
per cent Of their paid up anu uniui.
paired capital, provided the dUpJsit
with the government - guarantee
fund In Uultoi States legal tender
notes including treasury notes oil 1890,
a sum VI equal am .uus 10 30 per cent
VI tue noIes they desire 10 issue, this
doposit 20 DO maintAined at all times,
TUT Whenever any bank tetiros any
part Of its circulation a prOpUrtiOnate
part VI iia guarantee fund shall
W returned to IT. 10 permit
the secretary OF tho treasury TO
prepare anu keep on hand ready for
issue IN case an increase ia circulation
IL desired, blank national bank uotos
for each bank having circulation, aud
10 repeal tho provisions Oi the present
law imposing Limitations ami Testrlc-
lions upou bAugs uoslting 10 reduce or
Increase their circulation, thus per-
hitting suCh iucroaso or reduction
within the limit Ot the 70 par cent Of
capital to be quickly made w emeT-
genciea arise. In addition 10 the guar.
Hntee fund required II Is proposed to
provide safety fund for tue
Immediate redemption OF the cifuulat-
iug notes OF failed banks by imposing
small annual tar, say ono.halt
Of one per cent, upon tho average uir-
culatlon Of eRcn bank until the Juno
amounts 20 i've per cent Of the total
circulation outstanding. When bank
falls, It's guarantee fund 10 to DO paid
into this safety fund aud itH notes are
10 be redeemed In tue FIRST instance
from such safety fund thus augmented,
any impairment OF Hucn iuuu caused
thereby, ~ DO made good from thv
Immediately available cash Asauts OF
said bank, ami II these should DO In.
sufficient, such impairment TO be made
good by pro rats aasussmrnt among
other banks, their contributions
continuing fret lien upon
the assets OF failed banks Ia
favor Of the contributing bauks,
As = further security II IL conIum.
plated that the existing provision
nxlng the individual liabilities Of
stocknol ders II to DO retained and the
bank't Indebtedness on account Of It's
circulating bO nds IL 10 he made n ilnt
lien and all It's atseis. For the purpite
OF meeting the expense OF printing
notes, official supervision, CANCELLATION
ana other like charges, there shall be-
paid "a tax, say one'half OF one per
cent per Annum, on the average
amount OF notes Ia circulation.
IL is further provided that
thore thRll be no national
tank notes issued OF loss
denomination than ten dollats;
that each national bank, except In case
Of n failed bank, shall redeem or retire
it, nOtoa In the first Instances nj lie own
office Vt agencies 10 be designated by
IL and 40 liked reserve may be- main
lAinod on account OF deposits. Another
very important feature Of this plan 10
tha exemption of state banks from
taxation by the United States In cases
whore It IL shown 10 the eatisfaoti0u Of
the secretary OF the treasury anu comp
trOller OF tue currency by banks
claiming such exemption that they
have not had outstanding their
circulating notes exceeding eoyGuty.
fiyo por cent OF their paid
up End unlmpaitui ospitai;
that theig slookholIers arc Individual
ly liable for the redemption OF their
circulating notes ~ the null extent OF
their ownership Of stock; that the
liability Of said banks upon their olrcu-
lAtlng notes constitutes under thar
state law y hrst lien upon their nssuts;
that such banks have kept and main
tained a guarantee fund In uDltOl
States legal teGder notes including
treasury notes Of 1890 0qual 10 thirty
par cent OF their outstanding notes;
aud that such banks have prompts
ly redeemed their circulating
notes when presented 1t their
principal or branch offices. IL
10 quite likely that this scheme may
bo usefully amended In some OF IL
detsals; but / am satisfied 1t furnishes a
basis for very great improvement Ia
our present banking and currency
system.
COSCLusION.
conclude this Communication, fully
appreciating that tue responsibility for
All legislation affecting the people Of
the United States rests upon their
representatives. In Congress, and assut-
inc them tunt whether In accordance
with recommendations have made Or
not, shall bB glad 90 cooperate In
pvrlecling any legislation that tends
10 the prosperity and welfare OF our
country.
GROVER CLEVELAND.
Executive Mansion, Deu'r 8rd, 1874.
aaas-=HH
JApANsa BLuANDH.