River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1894-12-06

able globe, IS consistently supplemented bv
the greatest possible liberty 70 our citizens in
the ownership and navigation on ships in which
our products and manufactures may be trans
The Issue of Bonds.
During the last month the gold reserved in
the trea ~ury for the purpose q redeeming the
notes OF the government circulating as money
in the hands of the people became so reduced.
and its further depletion In the near future
seemed certain thai IN the exercise OF
proper care Tor the public welfare il became
necessary TO replenish the reserve and thus
maintain popular faith "a the ability and de-
termination OF the government to meet, as
agreed. its pecuniary Obligations. II would
have been well il in this emer sency authority
had existed TO issue bonds OF the gov-
ernment bearing low rate Of inter-
est aud maturing within a short period,
but the congress having failed 70 confer suck
authority. resort was necessarily had TO the
resumption act OF 1873 and pur uant TO It's pro-
visions bonds were issued drawing interest at
the rate OF per cent. per annun, and matur-
ing ten years after their issue tn 4 being the
shortest time authorized by the act. am glad
70 say, however, that on the sale % these
bonds the premium received operated to re-
duce the rate OF interest Co be paid by the gov
eminent to less than per cent
l cannot for a moment believe that any OF
our citizens are d hberateN willing that their
government shoull default in its pecuniary oh
Hgat ons or that It's financial operations should
be reduced TO a silver basis. At any rate
should not feel that my duty was done II L
omitted any effort could make TO avert such
a calamity.
hangs an Currency System Advocated.
The rbsolute enforcement OF the government
from the BUSINESS OF ban sing Is the ideal rela-
tonshp of the government TO the circuat 81
of the currency OF the country. This condl tiOa
cannot be Immediately reached but as a step
in that direction. ana as means of securing
more elastic currency ard oh lat ng other OBJ
ie tions 10 the present arrangement of bank
circulation, the seer tary OF the treasury pre-
senis in his report q scneme modifying present
bal king laws and providing for the issue OF
circulating notes by st &c banks free from tax
alton under certain limitations.
1t Is proposed TO repeal all laws providing for
the deposit OF United states bonds as security
for Gil, ulation; 10 permit national banks 70
issue circulating notes not exceeding In
amount Is per cent of their paid up and I'M
paid capital. provided they deposit with the
government. as guarantee fund. in United
States legal tender notes Including treasury
notes OF 1890, 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 circulation proportional part OF
its guarantee fund shall be returned to IT; to
pc NIT the secret grf of the treasury TO pre-
pare and keep on hand ready for issue in case
an increase in circriat Oh is desired blank ma
tional bank notes for { ,ch bank having clrcu-
lation, and TO repeal the provisions OF the pres
mt law imposing limitations and restrictioas
upon banks desiring to reduce or increase their
circulation thus permitting such increase or
reduction within the limlt or 20 per cent. OF
capital TO be quickly made as emergencies
arise
ia addition to the guarantee fund required
| it Is proposed TO provide safety fund for th 9
immediate redemption ofthe circulating notes
of failed banks. by imposing a small annu ii
| tax, say one-half OF per cent, upon tle
average circulation of each bank until the
| fund amount 10 per cent, OF the total
| circulation outstanding. When bank falls
| its gu irantee FUND is to be paid INTO this
safety fund and its notes ere TO be redeemed
| in the first inst lnce from such safety fund
thus augmented-any impairment OF such
| fund caused thereby TO he made good from the
! Immediately av ilable cash assets " said
bank. ami if these should be insufficient
such impairment to be made good
by pro rata assessment among the'
other banks, their contributions constituting
a first lien upon the assets OF failed bank ia
| favor of the contributing banks as a further
security IL Is CONTEMPT ted that the existing
| condition fixing the individual liability or
stockholders is 10 be retained and the banks
| Indebtedness on account OF its circulating
notes is to be made first lien on all its assets
Another very important feature of this plan
is the exemption OF state banks from taxation
| by the United States In cases where IL is
shown to the satisfaction of the secretary OF
the treasury and comptroller of the currency
by banks claiming such exemption that they
have not had outstanding their circulating
notes exceeding ~ per cent. of their patd-up
and unmpaired capital; that their stockhold-
erS are individually liable for the re-
demption of their circulating notes to the
full extent of their ownership of stock; that
the liabi ity of said tanks upon their
circulating notes constitutes under their stat Q
law first lien upon their assets; that such
banks have kept ami maintained a guarantee
fund in On ted States legal tenr er not es m
GLIDING treasury note. Of 1890 equal to 30 per
cent. of tleir Outstanding circulating notes
AMI that such banks have promptly redeemed
their circulating notes when presented at their
principal or branch Offices.
doncius ON.
conclude this communication. flu lily appre-
ciating that the responsibility for all legisla-
tion affecting the peope OF the United states
rests upon their representatives in the con-
lgress. and assuring them that, whether in
accordance with recommendations H. made
or not, shall be glad To cooperate Ia perfect
ing any legislation that tends TO the prosperity
and welfare of our country.
GROVER CLEVELAND
Executive Mansion December 8. 1891.