The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1894-12-12

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GOLD held for It's redemption and the
means which must be resorted to for
the purpose OF repleElsling such re-
dcmp:;on fund when impaired. Even
if the ciainsupon this fund were con-
fined to the obligations originally in
tended and if the redemption Of these
obligations meant theii. cancellation.
the fund would be very small But
these obligations when received and
redeemed in gold are not cancelled but
are re Issued and may do duty many
times. by drawing gold from the
Treasury. Thus we have an endless
chain in operation. constantly depict
ING the Treasury's gold and never near
u final rest. AS if this was not bad
enough. we have by statutory decla-
ration that it is the policy of the gov
ernment to maintain the parity be-
tween gold and silver. aided the force
and momentum of this exhausting
process. and added largelyto the cur
rencv obligations claiming this pecu-
liar gold redemption. Oursmall gold
reserve is thus subject to drain from
every side. The demands that increase
our danger also inrease our danger
also increase the necessity of protect
ing this reserve against depletion, and
it ismost unsatisfactory to know that
the protection afforded is onl V tenn
porary palliative.
1t is perfectly and palpably plain
that the only way under present con-
tlitions by which this reserve, when
dangerously depleted, can be replenish
cd is through the issue and sale of the
bonds of the government for gold and
vet Congress has not only thus far de-
clined to authorize the issue of bonds
best suited to such a purpose, but there
seems disposition in some quarters
to deny both the necessity and power
for the issue of bonds atall. I can
not for momont believe that any of
our citizens are deliberately willing
that their government should default
in its pecuniary obligations or that its
financial operations should be reduced
to a silver basis. At any rate | should
not feel that my duty was done if l
omitted any effort l could make to
avert such acalamitv. AS long. there
fore. as no provision is made for the
final redemption or the putting aside
of the currancy obligation now used
10 repeatedly and constantly draw
from the government its gold and as
long as no better authority for bond
issues is allowed than at present exists,
such authority will be utilized when
ever and as often as it becomes necessary
to maintain a sufficient gold reserve
and in abundant time to save the credit
of our country and make good the fin
ancial declarations of our government.
THE PRESSING QUESTION.
Questions relating to our banks and
currency are closel y connected with
the subject just referred to and they
also present some unsatisfactory fea-
lures. Prominent among them are
the lack of elasticity in our currency
circulation and its frequent concentra-
ton in financial centers when it is
most needed in other parts of the
country. The absolute enforcement
Of the government to the currency OF
| the country is advisable. This con-
dition cannot be immediately reached;
but as step in that direction and as a
means of securing more elastic and
obviating other objections to the pres
ent arrangement of bank circulation,
the secretary of the Treasury presents
in his report ascheme modifying pres
ent banking laws and providing for
the issue Of circulating notes by State
banks free from taxation under certain
limitations. The Secretary explains
his plan so planinly and its advantages
are developed by him with such re-
markable clearness that any effort On
my part to present arguments in its
support would be superduous. l shall
therefore content myself with an un-
qualified endorsement of theSecretary's
proposed changesin the law and brief
and imperfect statement of their
prominent features:
1t is proposed to repeal all laws
providing for the deposit of Uni
ted States bonds as security for
circulation, topermit national banks
to issue circulating notes not exceeding
in amount IS per cent. of their paid
up and unimpaired capital, provided
they deposit with the govern
ment as guarantee fund in
United States legal tender notes
and including treasury notes, OF
1890, a sum equal in amount to 80 per
cent. of the notes they desire to issue,
this deposite to be maintained at all
times. but whenever any bank retlres
any party of its circulation proper
tional part of its guarantee fund shall
be returned to it to permit the Secret.
ary of the Treasury to prepare and
keep on hand, ready for issue, in case
an increase in circulation 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 de-
esiring to reduce or increase their
circulation-thus permitting such in
crease or reduce of reduction within
the limit of Is per cent. of capital to be
quickly made as emergencies arise.
In additional to othe guantee fund re
quied it is proposed toprovide safety
fund for the immediate redemption of
the circulating notes of failed banks
by imposing small annual tax, say
one-half Of per cent, upon the aver
age circulation Of each bank until the
fluid amounts to per cent. Of the
total circulation outstanding. When
bank fails its guarantee fund is to
be paid into this safety fund and its
notes are to be redeemed in the first
instance from such safety funds thus
authorized; 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, their contri-
buttons constituting first lieu upon
the assets Of the failed bank in favor