The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1894-12-14
NEW CURRENCY SCHEME.
A Plan sussested by Secretary Car
Isle ID EndOrsed

-.
Isle ID Endorsed.
Questions relating to our banks and cur
rency are closely connected with the sub
5ect just referred to and they also present
some unsatisfactory features. Prominent
currency cremation and its frequent con.
centration In financial centers when 1t IL
most needed In other parts Of the country.
The absolute divorcement Of the govern
idenl relationship Of the government to the
circulation Of the currency Of the country.
This condition cannot be Immediately
as means Of securing n NOR, elastic cur.
rency and obviating other objections TO the
present arrangement OF bunk circulation. the
port scheme modifying present bnnk laws
and providing for the issue Of circulating
notes by state banks free from taxation un.
der certain limitations,
Un1unlihediy Endorsed.
The secretary explains his plan so plain
ly aud Its advantages are developed by
him with such remarkable clearness that
any effort on my part to present argument
shall therefore content myself with nm
unqualified Endorsement of the secretary's 8
proposed changes In the lazy and n brief
and imperfect statement Of their prominent
features.
1t is proposed to- repeal all laws providing
for the deposit Of United States bonds as
security for circulation: TO permit national
Ing In amount 55 per cent Of their paid up
and. unimpaired capital. provided they de-
posit with the government as guarantee
fund r. ths United states ieEa asS"r notes.
In amount to 30 per cent Of the notes they
desire to issue. this deposit 10 be main
tnined at all times, hut whenever any bank
tionate part Of its guarantee fund shall he
returned to 1t; to permit the secretary Of
the treasury to prepare and keep on hand
culatlon IL desired blank national bank
notes for each bank having circulation aud
TO repeal the provisions Of the present law
imposing limitations and restrictions upon
clrculation-thus permitting such increase
Of capital to be quickly made as emergencies
arise.
In addition to the, guarantee fund re-
fund for the Immediate redemption of the
Ing a small am annual tas. say one,half Of Of
each bank until the, fund amounts TO 5
cent Of the total
notes are to be redeemed in the first in
stance. from such safety fund thus aug:
caused thereby to be maae good from The
Immediately available cash assets of said
bank, and II these should be insufficient
rata assessments among. :hc other banks.
their contributions consisting first lien
upon the assets Of failed bank in favor
OF the contributing banks.
Az Farther Security.
As further security 1t Is contemplated
that the existing provision fixing the indiv-
id9al liability Of stoekholders Is to he re-
COUNT q M ts cir noies IS to be On
q first lien on all Its assets.
For the purpose Of meeting the expense Of
printing notes. ofncial supervision, cance!la-
ti0n and other like charges there shall he
paid tax say, one-hnif OF per cent per
annum on the average amount Of notes in
circulation. It is further provided that there
less denomination than ten dollars: that each
national bank. except In case OF failed
hank: shall redeem or retire its notes In
agencies to be designated by It and that no
fixed reserve need be maintained on account
Of deposits.
plan is the exemption of state banks from
taxation by the United States In cases
where It Is shown to the satisfaction Of the
of the currency by banks claiming such
exemption that they have not had outstnn,l-
Ing their circulating notes exceeding % per
a ssnt ta.t 81 tafs ars
liable for the redemption Of their circn-
lating notes. to the full extent Of their
ownership Of stock; that the liability Of
9alu OAuk6 upon luelE ClEculhtluk IlUtGS COLI
stitutes under their state law a first lien
upon their assets: that such banks have
kept and maintained a guarantee fund In
United States legal tender notes. including
Of their outstanding circulating notes, and
that such banks have promptly redeemed
their circulating notes when presented ut
likely that this scheme may be use{uliy
amended In some OF It's details: hut I aln
satisfied II furnishes q basis for very
great Improvement 10 our present banking
| and currency system.
/ conclude this communication fully appre-
ciating that the responsibility for all fcgIs.
lation affecting the people Of the United
the congress, and assuring them that
| whether In accordance with recommenda.
| tions have made OF not. shall be glad
tIat tsndS to ths prosperity and welfare Of
~ eeul11. -afoyE Cleveland