Marshall County independent. (Plymouth, Marshall County, Ind.) 1894-1895, 1894-11-09
A WILD CAT SCHEME.
THE PLAN OUTLINED IN THE
HAZARD CIRCULAR.
National Bankers Favor More Money Pro-
vided 1t Is Issued by the National Banks
Control Labor by Controlling the
Wages OF the Laborer.


Inc bankers OF baltimore nave pre-
pared & petition to Congress, which
submitted to the Bankers Association
for approval, TO amend the present ma
sional banking system.
This new scheme, so far as We can
get at it from the press dispatches,
provides that the national banking act
requiring the deposit OF bonds to Sc
cure circulating notes hereafter issued
shall be repealed. All of the banks to
issue circulating notes to the amount
of 80 per cent. of their paid up, unim
paired capital, subject to a tax of one
hall OF | per cent. upon the average
amount OF circulation outstanding tor
the year; and an iditional circulation
of % per cent. of their paid up, unim-
paired capital, subject to the tax of
One-half OF l per cent. and to an adj
ditional tax per annum upon the aver
age amount OF sach circulation out
standing for the year, said additional
% per cent. % he known rs emergency
circulation The tax OF one-half of l
per cent. upon the average amount of
circulation outstanding shall be paid
to the Treasurer Of the United States
the expenses OF the ciiice of Comptroller
of the Currency, the printing of cir
cula ing notes, etc, shall be defraved.
The excess over one-half Of | per cent.
of the AK imposed upon the "emer-
gency circulation shall ne paid into a
guarantee fund"
The banks issuing circulation shall
deposit and maintain with the Treas
urer of the United States Il "redemp-
ton fund" equal to > per cent. OF their
average outstanding circulation, as
provided for under the existing law.
The redemption OF the notes OF all
banks, solvent or insolvent, to be
made as provided for by the existing
law.
Create guarantee fund through
the deposit by each bank of , per cent.
upon the amount of circulation re-
ceived the first year. Thereafter inn
pose tax of one-half of | per cent.
upon the average outstanding circula
ton. the same to be paid into this fund
until 1T shall equal > Per cent. of the
entire circulation outstanding, when
the collection of such tax shall be sus-
pended, to be resumed whenever the
Comptroller of the Currency shall
deem it necessary. The notes of in
solvent banks shall be redeemed by
the Treasurer of the United States out
of the guarantee fund if it shall be
sufficient, and If not sufficient then out
of any money III the treasury, the
same to be reimbursed to the treasury
out of the guarantee fund, where re-
plenished either from the assets of he
failed banks or from the tax aforesaid.
The Government shall have prior
lien upon the assets of each failed
bank and upon the Liabilities of share
holders for the purpose of restoring
the amount withdrawn froll the guar
antee fund for the redemption of its
circulation.
The plan was presented to the asso-
citation and, according to the reports,
was adopted by an almost unanimous
vote"
A side light may be thrown upon
the scheme by quoting speech i'll It's
favor by \. Is. Hepburn, formerly
comptroller OF the currency, but at
present president OF the Third Nation
nj Bank of New York. He said:
The political action of both parties
expressed IN party platforms and sta
TUE law representing net honest con-
victlon but a desire to placa.te and cap
ture the more money" and the silver
votes Is responsible for conviction
that has become ingrained in the
minds of many that there can be no
increase Iii our circulating..medium ex-
cept 1t comes through some form of
silver legislation. They say: "Op-
posed to free coinage, what are you go
ing to do? Population and business
are increasing; our currency should
increase in the same ratio. The Gov
eminent should not issue more fiat
money. State bank circulation is
fraught with danger. National banks
cannot supply currency because Gov
eminent bonds as security are fast be-
ing retired. We must resort to silver
as the only alternative"
The action of the bankers of Balti-
more, SO ably presented to this con-
vention and for which they deserve
the thanks of the nation, is q com
plete answer to all this and it is a
timely answer. With the Republic
cans of California and theI Democrats
of Ohio demanding free coinage of sill
yer at the ratio of l6 to l and varying
shades of the same sentiment finding
public and party expression in differ
ent localities it is imperative that this
convention of bankers formulate the
principles upon which they believe
the currency of the country should be
founded. A currency to be elias ic
must be issued against credit. Banks
must have power thus to create money.
In nc other way can currency be elias
tic. In no other way can it meet the
wants of commerce.
From the very nature of things the
Government cannot give such cur
Iency. The banks can and the banks
only can with prudence and safety be
allowed to do so. There is no more
money III tie country in 1894 than
there was In 1899. Now money clogs
the vaults of our banks and begs in
vestment at lower rate per annum
than the premium offered one year
ago for single service and which