Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1894-12-06

TO De failure for good at every point, out to
that exists under the permission of a statute of
the United States. 1 earnestly recommend its
prompt repeal.
The Issue of Bonds.
During the last month the gold reserve in the
treasury for the purpose of redeeming the notes
of the government circulating now in the hands
OF the people became so reduced, and its further
depletion in the future seemed certain,
that it became necessary to replenish the reserve
and thus maintain popular faith in the ability
and determination of the government to meet;
as agreed its pe s obligations 1t would
had existed to issue bonds of the government
bearing low rate of interest and maturing
failed to confer such authority, resort was neces-
saray nad TO the act OF $50 ssne u
drawing interest at the rate of 3 per cent. per
sue, that being the shortest time authorized by
the act am glad to say, however that on
the sale Of these the premium m e
paid by the government to less than per cent
could be worse + OF 1ste
between the currency the government has issued,
the gold held for its redemption, and the
pose of replenishing such redemption fund when
men to the the f i fund
tended, and if the redemption of these obliga,
be small la
ceived and redeemeN in gold, are not cancelled,
By way Of drawing gold from the treasury;
Thus we have an enNess chain in operation
aeReng the Re- tp w, gold not s snd
enough, we have, by statutory declaration
pars s Of the and ade
the force and momentum of this exhausting
process and added largely to the currency oD
ton. Our small gold reserve is thus subject
drain from every side me AM tns TN
of protecting this reserve against depletion, and
is most IS to know that the r
1t is perfectly and palpably plain that the only
serve when dangerously depleted can be re-
plenished, is through the issue and sale of bonds
nc only thus far declined to AUTHORITY the issue
of bonds best suited to such purpose, but there
seen tb @ fr th to aen
| bonds at all.
citizens are deliberately willing that their gov
eminent should default in its pecuniary obliga-
reduced to a silver basis. At any, rate.
should not feel that my my duty was done if
calamity. AS long, therefore, as no provision
is made for the final redemption or the putting
repeatedly and constantly draw from the gov
eminent its gold and as long as no better au-
thority for bond issues is allowed than at
whenever, and often it becomes necessary
abundant time to save the credit of our country
and make good the financial declarations of our
government.
Favors n New Currency System.
| Questions relating to our banks and currency
| are closely connected with the subject just re-
| ferred to and they also present some unsatis-
! factory features. Prominent among them are
the lack of elasticity in our currency circulation
and it's frequent concentration in financial cen
tiers eony The of the
from the business of banking is the
| culation of the currency of the country; This
se in t de and as means of
securing more elastic currency and obviatins
! other objections to the present arrangement of
| ban
| presents in his report a scheme modifying pres
circulating notes by state banks free from taxa
! tion under certain limitations The secretary
are developed by him with such remarkable clear
ness that any effort on my part to present arg,l-
Therefore ''s content myself with an unquaiifed
od of the n
! OF their prominent features
The Proposed Plan.
| 1t is proposed to repeal all laws providing for
| the deposit of United States bonds as security
! for circulation; to permit national banks to is
per cent. of their paid-up and unimpaired capl.
as a guarantee fund in United States legal ten
der notes, including treasury notes OF 1880,
sum equal in amount to 30 per cent. of the notes
tanned at all times but whenever any bank re-
tires any part of its circulation a proportional
part of it's guarantee fund shall be returned to
it, to permit the secretary of the treasury to to
tase an nerea nsef in on desired blank
national bank notes for each bank having cir cir
ent law imposing limitations and restrictions
! upon banks desiring to reduce or increase their
crculatonthus permitting such increase e. or .n re-
tai to be quickly made as emergencies
a CURED It IS Proposed to provide safety
fund for the immediate redemption of
IMPOSING iu ''' Small la annual tax, say one-haif
of 1 per cent, upon the average circulation mo OF
! each bank until the fund amounts to per cent.
/ of the total circulation outstanding. When
bank fails, it's guarantee fund is to be paid into
! deemed in the first instance from such safety
fund thus augmented any impairment of such uSh
/ fund caused thereby to be made good from the
| Immediately available cash assets of said bank,
and if these should be insufficient, such inn
J pairment to be made good by pro rata assess
! ment among the other banks, their contributions
constituting first lien upon the assets of the
! As further security, it is contemplated that
| the existing provision fixing the individual LA
banks Indebtedness on account of it's circulat-
ing notes is to be made first lien on all its
Dense pense of printing notes, Official supervision,
| cancellation and other like charges, there shall
nnnum on the average amount of notes in circu-
lation. 1t is further provided that there shall
be no national bank notes issued of less de-
nomination than $40. That each national bank,
except in of failed bank shall redeem
own office or at agencies to be designated by it,
and that fixed reserve need be maintained on
account of deposits.
|
I Another very important feature of this plan
is the exemption of state banks from taxation
nv the United States in 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 notes exceeding 20
per cent. of their paid-up and unimpaired capl-
tai: that their stockholders are individually la
BILE for the redemption of their circulating notes
TO the full extent of their ownership of stock;
that the liability of said banks upon their cir
culating notes constitutes under their state law
n first lien upon their assets; that such banks
have kept and maintained guarantee fund In
United States legal tender notes including the
treasury notes of 1890 equal to 80 per cent. of
their outstanding circulating notes. and that
such banks have promptly redeemed their c1rcu
lating notes when presented at their principal or
branch offes. -. -.
fully amended in of it's details: but l am
satisfied it furnishes basis for very great
improvement in our present banking and cur
rency system. -
conclude this communication fully ap,prIe-
ciating that the responsibility for all leg1sia-
ton affecting the people of the United States
rests upon their representatives in the congress
and assuring them that whether, in accordance
with recommendations l have made. or not,
shall be glad to cooperate in perfecting any
legislation that tends to the prosperity and
welfare u 'ui GROVER CLEVELAND.
t@x-oou+fvo Mansion Dec g 1894.