The Middleburgh post. [volume] (Middleburgh, Snyder Co., Pa.) 1883-1916, 1894-12-06
lsr $ sl,G IF e I, s constantly depict

10 maint8m the parity between gold and
this esSsus,iSs process @ a and Si sGded large, g.
. !hls !, psssl'sS saa Tsds%pslon. '.-'''5af our
dan tsssrye evsry a. mus fhs sussns as
that increase our danger also incree se
the necessity OF protecting this ressrve
satisfactory to know that the projection
AFFORDED is only a temporary palliation.
II Is perfectly and pslpably plain that the
which this reserve when dangerously de-
pleted, can be replenished- is through the
issue and sale or the bonds of the govern
only thus far declined 20 authorize the is
sue OF bonds best suited to such n purpose,
but there seems a disposition In some
power for the issue of bonds at all. I
can not for moment believe that any
ot our citizens are deliberately willing
that their government should default in
It's pecunisry obligations or that It's An
anclal operations should be reduced to n
s,yef sani basis, A. any rate. I should not
any effort ] could maze TO avoid
such calamity. As long. there
fnGre, nse, as ms no provision is made for the,
the currency obligation now used TO re.
peatediy and constantly draw from the
government its gold. and az long as no
better authority for bond issues ~ allowed
than at present exists such authority will
be utilized whenever and az often az II
becomes necessary to maintain "a suffi
Client gold revenue, and In about time
TO save the credit OF our country and
make good the financial declarations Of
our government.
Bank Currency.
Questions relating 10 our bank currency
are closely connected with the subject
Just referred to. and they also present
some unsatisfactory features. Prominent
among them are the lack Of elasticity in
our currency circulation and its frequent
concentration in financial centers when II
Is most needed in other parts OF the
country. The absolute divorcement of the
government from the business OF banking
Is the ideal relationship Of the govern
ment, and the circulation OF the currency
OF the country. This condition cannot be
Immediately reached. but as n step In
that direction and as "a means Of securing
a more elastic currency ana obviating
other objections to the present arrange
mcnt Of bank circulation, the secretary
OF the treasury presents In his report a
scheme modifying present banking laws
and providing FOR the issue Of circulat-
ing notes by state banks free from taxa
tion under certain limitations. The secre-
tary explains his plan 80 plainly, and It's
advantages are developed by him with
such remarkable clearness, that any effort
on my part to present argument in its
support would be superiluous. / shall
therefore, content myself with an unquali-
fled endorsement of the secretary's pro;
imperfect statement OF their prominent
features,
new
1t is proposed to repeal all llws pro-
vilng for the deposit OF L. $. ponds as
security for circulation 20 permit IA
tional banks 10 Issue circulating notes
not exceeding = amounts 20 ger 'ent
provided they deposit with the govern.
mcnt. as a guarantea fund In l. : legal
tender notes, including treasury notes of
1890. "A sum OF equal in amount TO 20 per
cent. of the notes they desire TO issue.
This deposit to be maintained at all times
but whenever any bank retires any part
of Its availability a proportionate part OF
its guarantee fund shall be returned TO
IT, to permit the secretary OF the treas
ury to prepare and keep on hand ready
for issue In case an Increase In circu-
lation ~ desired. blank national bank
notes for each bank having circulation,
and TO repeal the provisions OF the pres
ent law imposing limitations and restric-
tions upon banks desiring to reduce or in
crease their circulation, thus permitting
such Increase or reduction within the
quickly made as emergencies arise. In
addition to the guarantee fund required,
i is proposed TO provide safety fund
for the immediate redemption of the cir
culating notes of fixed bonds by i'm
posing a small annual tax, say one-half
% TO ave per cent; Of III
i faiis it, chrrssniee ' fSnd is "'t to be paid
into ne ssT S fund , sna Il: nSsss ro sTs
such safety fund thus augmenting any
Impairment by such fund caused thereby
to be m made good from the imhmedniate,y med
4 further security 1t Is contemplated that
the existing provision hxing the indenti-
,al liability OF stock holders Ghd rs 10 ee re, n
account OF its circulating notes is TO be
made u first lien on all its assets.
Exemption scheme.
For the purpose of meeting the expense
1f printing notes official supervision tcan-
shall be imposed a tax OF say one-half of
)nc per cent per annum upon the average
AMOUNT Of notes in circulation, II Is fur
ional bank notes issued OF less denomi-
nation than ten dollars: that each nation
a bank; except In case of failed bank,
shall redeem or retain its notes in the first
Instance at its office or at agencies to be |
designated by II, and that no fixed re-
'erve need be maintained on account OF
deposits Another very important feature |
II this plan Is the exemption of state |
Danks from taxation by the United States
y cases where 1t is shown to the satsfac,
ion OF the secretary of the treasury and
comptroller Of the currency by banks |
'laimlng such exemption that they have
lot had outstanding their circulation
ip and unimpaired capital; that their |
are individually liable for the |
'edemption OF their circulating notes TO
'tock; that the liability Of said banks upon
heir circulating notes constitutes under
heir state law first lien upon their as |
acts that such banks have kept and main.
.ained n guarantee fund In United States |
egal bonded notes, including treasury
notes OF 1890 equal TO 30 per cent. OF their
outstanding circulating notes. and that |
such banks have promptly redeemed their
circulating notes when presented at their |
principal or branch offices.
II IL quite likely that this scheme NAV
)e usefully amended In some of It's details,
)ut am satisfied II furnishes n basis for
very great Improvement In the present
banking and currency system, | conclude |
his communication by saying that |
ne responsibility for all legislation affect
ng the people of the United States rests |
lpon their representatives I'm the congress-
ana assuring them that, whether In ac-
'ordance with recommendations | have |
made or not, shall be glad to Cooperate |
n perfectlng any legislation that leads 10 |
he prosperity and welfare Of our country,
(SignedD
GROVER CLEVELAND.
Executive Mansion,
December 3, 1894.