Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1894-12-07

ICSCIVC, duSA Ill bOuluuilU UlL1O W SdtCi
the credit of our country and make good
ment.
BANKS AND CURRENCY.
Recommendations of Comotroller Eckles
Heartily Endorsed.
Questions relating 10 our banks and
currency are closely connected with fthe
subject just referred to, and they also
present some satisfactory features. Prom
inent among them are the lack of elastic
1ty in Q currency circulation and its
frequent concentration in financial cen.
tiers when it is most needed in other parts
of the country.
The absolute enforcement of the bust.
ness of banking is the ideal relationship
of the government to the circulation OF
the currency Of the country.
A State Bank Scheme.
This condition cannot be Immediately
reached, but as a step in that direction
and as a means of securing a more elastic
currency and obviating other objections
to the present arrangement of bank circu-
latlon, the secretary of the treasury pre-
sents in his report a scheme modifying
present banking laws and providing for
the issue Of circulating notes by state
banks free from taxation under certain
limitations.
and it's advantages are developed by him
with such remarkable c~learness that any
effort on my part to present argument in
it's support would be s%uperfuous. 1 shall
therefore content myself with
An U~nequalled Endorsement
of the secretary's proposed changes in the
law and q brief and imperfect statement of
their prominent features. It is proposed
to repeal all laws providing for the de-
post of United States bonds as security
for circulation; to permit national banks
to issue circulating notes not exceeding in
amount Is per cent of their paid up and
u%nimpaired capital provided they deposit
with the government as a guarantee fund
in United States legal tender notes, not
including treasury notes of 1890, a sum
equal in amount to 80 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 circula-
ton, a proportionate part of it's guarantee
tee fund shall be returned to
it; to permit the secretary
of treasury prepare and keep on hand
ready for issue, in case on increase in cir
culation is desired, blank national bank
notes for each bank having circulation,
and to repeal the provisions of the present
law imposing limitations and restrictions
upon banks desiring to reduce or increase
their circulation-thus permitting such in
crease or reduction within the limit of Is
per cent of capital to be quickly mande as
emergencies arise.
A Safety fund.
In addition to the guarantee fund re-
.Quired. it is proposed to prouide a safety
fund for the lmmedlate redemption OF TIA
circulating notes of failed banks byimpos-
ing a small annual tax, say one half
of l per cent, upon the average circula-
ton of each bank until the fund amounts
to 5 per cent of the total circulation out
standing. When a bank fails its guaran-
tee fund is to be paid into this safety fund
and its notes are to be redeemed in the
first instance from such safety fund thus
augmented-any Impairment Of such fund
caused thereby to be made good from the
Immediately available cash assets of said
bank, and if these should be insufficient,
such impairment to be made good by pro
rata assessment among the other banks,
thsir contributions constituting a first lien
upon the assets of failed bank against con
tribnting banks.
A Further Security.
As a further security it is contemplated
that the existing provision f fixing the indi.
yidual liability of stockholders is to be re.
tanned and the banks Indebtedness on
account Of its circulating notes is to be
made a first lien on all its assets.
For the purpose Of meeting the expense
of printing notes, official supervision, can
collation. and other like charges there shall
be, paid a tax say one-half of l per cent per
nnu on. the average amount Of notes in
circulation. 1r.
It is further provided that there shall be
no national bank notes issued of less de.
nomination than ten dollars; that each
national bank, except in cas- of a failed
bank, shall redeem or retire it's notes in
the first instanc e at it's own office, or at
agencies to be designated by it, and that
no fixed reserve be maintained on account
OF depositors.
i. GROVER CLEVELAND.
Executive Mansion, Dec. g., 1891.