Alma record. (Alma, Mich.) 1878-1928, 1894-12-07

poriations as our people need and that our
products and manufactures should md markets
In every part Of the globe II consistently sup
p-emenied by the greatest possible liberty 10
our citizens In the ownership and navigation Of
ships in which ouE products and manufactures
may ne transported. The millions now paid 10
foreigners for carving American passengers and
products across iae sea should he turned lntO
American hands. slip building, which has been
protested 10 stransuiali2n' should DC revived by
the prospect OF profitable employment for ships
when built, and the American sailor should be
resurrected aud again take his place, sturdy
patriotic and safe defender Of American inter
ests In the day Of conflict. The ancient provi-
sion Of our law denying American refstry TO
ships built abroad and owned by Americans APP
pears In the Hight Of present conditions not only
10 be a failure Tor good az every point. but 10
be nearer relic Of harbarism than snyth!ng
that exists under the permission ~ "A statute Of
the United States. ! earnestly recommend It's
prompt repeal
The Issue of Bonds.
During the last month the gold reserve In the
treasury for the purpose Of redeeming the notes
NJ the people became SO reduced and It's further
depletion in the near future seemed certain.
that IL became necessary 10 renienish the re.srve
aud thus maintain popular falth In the ability
and determination OF the government 90 meet,
a. agreed, It's pscuninry obligations 1t would
have been we'll H. In this emergency. authority
had existed 20 Issue bonds Of the government
bearing low rate Of interest and maturing
within a short period. Bot the congress having
tailed to confer such Huthority. resort neces-
sariiy had 10 the resumption act Of 1875, and.
Ara wing interest at the rate Of per cent. per
annun and maturing ten years after their Is
cue that being ne shortest time authorized by
the act am glad 20 say however, that on
the sale Of tEose bon's, the premium received
operated 10 reduce the rate Of Interest 10 Be
paid ~ the goterument to less than per cent.
Nothing could he worse further removed
from sensible finance than tie relations existing
between he currency the government has issued,
the gold held for its redemption and The
means Nit'h must bc resorted 10 for the p-r-
pose ~ replcnishing suca redemption fund when
Impaired Even n The claims upon this fund
were confined 10 the obi, atoms originally in
tended. and II the rcdemp' ION Of theae obliza-
tions meant their cancellation. the fund would
be very small But these obligations. WREN ~
ceived and redeemed In gold. are not cancelled
but are rcissCed and ray do duty many times
by way Of drawing gold from the treasury.
Thus We have an endless chain in operation
constantly lepleting the treasurys gold and
never near hnal rest AS II this wes not bad
enough, we have, by statutory declaration
maintain partly between ssld and silver, aided
the force and momentum or this eNhsnsting
legations claiming this peculiar gold r-temp.
ton. our small gold rererve IS thus subject
TO drain from every side The demands that in
crease our danger also increase the necessity
OF protecting This reserve against depletion. and
It IS most unsatisfactors 70 know that the pro-
II IL perfectly and palpably Plain that the emily
way under present conditions by which this re-
plen shed. II through the i-S;c ard sale Of bonds
OF the goyernm.nt tor ~; ed cngress has
OF bonds host suited 70 such rr-po@e, Int there
seems a disios!t,. IN IN sare cutters to deny
both the necessity and power Tor Ae Issue Of
bends ~ all.
citizens are deliberately willing that their gov.
srnment should default IN It's pecunisry obilgs.
should not feel that my duty was done i i
calamity. As long, therefore, no provision
Is made for the dual redemption or the putting
repeatedly and constantly draw fron the gov
eminent i gold, and as long as no better an.
present exists, such authority will be utilized
Whenever, and as often az II becomes necessary
abundant time TO save the credit Of our country
and make good the financial declarations of our
government.
Favors New Currency system.
Questions elatinE to our banks and currency
are closely connected with the subject just re-
ferred 10 an they slfo present some unsatis-
factory features. Prominent among them are
the lack OF elasticity In our currency circulation
and It's frequent concentration In financial cen.
tern when II is most needed in other parts OF
the country. The absolute enforcement OF the
government from the business OF banking Is the
Ideal Relationship of the government TO the cir
eulntion Of the currency Of the country This
q step in that direction. and a means OF
securing moro elastic currency and obviating
bank circulation, the secretary of the treasury
presents irs his report a scheme modifying pres
circulating notes by state banks free from taxa
ton under srtain Limitations, The secretary
plains his plan so pany c and It's
ness that any effort on my part TO present argu.
mont in It's ipport would be supereuous. I shall
Enforcement OF the secretary's proposed changes
In the law and a brief and imperfect statement
u their prominent features.
The Proposed Plan.
II IN proposed to repeal all laws providing fer
he Aang Or Tod Tot hrHaH
sue circulating notes not exceeding In ameunt rs
tsi prodsd ' they sepos, With the soV.r,2sn
a. . guarantee fund In United states legal ten
s eSS IN amount to 50 per cent Of the notes
tsey desire To issue. this d = osit 70 b. main
aed at all ting but any ban.
part OF It's guarantee fund shall be retufsed TO
1t; to permit the secretary Of the treasury TO
case an increase in circulation is desired, blank
"a uonsl bank notes 70. each bank having cir
.nt law imposing limitations ana Restrictions
upon bsnk5 desiring TO reduce or Increase their
sustou %tSn ,As , 9i per c.s; o.s
tai be ea,Ssy M, made m s"s fnrs -,
fund for tn. Immediate r.aemptioe Of
The IS'uns hOt.s DDn Of failed 9.Da:
each bank until Tie fund amounts 10 per cent.
bank fails. its guarantee fund is TO he paid into
thIs safety fund. and ne notes AFRO 70 be re-
Ser med IN the first instance from euch safety
fund thus sugmepted-any impairment OF such
fund caused thereby % he made good from the
Immediately available cash assets OF said bank,
and II these should he insufficient, such i'm
pairment TO be made good by pro rats assess
ment among the other hanks, their contributions
Arst lien upon the assets OF the
failed bank in favor OF the contributing banks.
As further security, 81 Is Contemplated that
the existing provision hXing the individual liza
hility OF stockholders Is 70 be retained. and the
banks Indebtedness on account OF its circulat-
Ing notes is to be made first lien on all It's
assets. For the purpose of meeting the ex-
pense OF printing notes, official supervision,
cancellation and other Ike charges there shall
be- paid tax say half Of l per cent. per
mum the average amount Of notes In circu-
latiOn. II Is further provided that there shall
be no national bank notes Issued Of less de-
nomination than $40. That each national bank,
or retire its notes In toe FIRST instance At It's
own once or at agencies 10 be designated by IL,
and that fixed reserve need be maintained on
account OF deposits.
Exemption of state Banks.
Another very important feature OF this plan
Is the exemption OF state banks firm taxation
by the United States in cases where II is shown
70 the satisfaction Of the secretary Of the treas-
iry and comptroller OF the currency 10y banks
claiming such exemption that they have not had
their circulating notes exceeding 10
yer cent OF their pa'd-up and uniinpaircd capt.
al: that their stockholders are Individually la
n the full extent OF their ownerehip NJ stock;
hat the liability OF said banks upon their cir
,ulating notes constitutes under their state law
first lion upon their assets; that such banks