The Coconino weekly sun., 1894-12-06

[ registry to ships built abroad and owned b~ Americans appears, in the light of present conditions, not only to be a failure for good at
 every point, but to be nearer relic of barbar 1 ism than anything that exists under the per- mission of statute of the United States earnestly recommend its prompt repeal
 The Bond issue.
 During the last month the gold reserves fin she treasury for the purpose of redeeming the notes of the government circulating as money | In the hands Of the people became so reduced and it's further depletion in the near future seemed so certain, that in the exercise of proper care for the public welfare 1t became necessary to replcnish this reserve and thus | maintain popular faith in the ability and de- termination of the government to meet, as agreed, it's pecuniary obligations. It would | have been well if in this emergency authority had existed to issue the bonds of the goy- ! ernment bearing a low rate of interest | and maturing within special period. | but the congress having failed to confer such | authority resort was necessarily had to the re- | sumption act of 1875 and pursuant to its pro- l vision, bonds were issued drawing interest at ! the rate of per cent. per annum and maturing | ten years after their issuing, that being the | shortest tine authorized by the act. am glad | to say. however that on the sale of these bonds
 the premium received operated to reduce the ! rate of interest to be paid by the government
 to less than per cent. Nothing could be worse | farther removed rom SeDSlDlc Onaucc than | the relations existing between the currency
 the government has issued, the gold held ' for it's redemption and the means which ! must be resorted to for the purpose of replen- ishng such redemption fund when impaired.
 Even if the claims upon this fund were con- | fined to the obligations originally intended, | and if the redemption of these obligations | meant their cancellation, the fund would be | very small. But these obligations when | ceived and redeemed in gold are not cancelled, | but may be ressued and may do duty many | times by way of drawing gold from the treas
 ury. Thus we have au endless chain in opera | tion constantly depicting the treasury's gold | and never near final rest. As if this was not | bad enough, we have by statutory declara- | tion that it is the policy of the government | to maintain the parity between gold and silver | aided the force and momentum of this exhaust | ing process and added largely to the currency | obligations claiming this peculiar gold redemp- l tion. Our small gold reserve is thus subject to | draw from every side. The demands that in- ] crease our danger also increase the necessity of | protecting this reserve against depletion, and | it is most unsatisfactory to know that the pro- ! tection afforded is only temporary pslliation.
 It is perfectly and palpably plain that
 the only way under present conditions by
 which this reserve, when dangerously de- ! pleted, can be replenished is through
 the issue and sale of the bonds of the | government for gold. and yet congress has not | only thus far declined to authorize the issue of
 bonds best suited to such a purpose, but there
 seems a disposition in some quarters to deny
 both the necessity and power for the issue of l bonds at all. I cannot for a moment believe that any of our citizens are deliberately willing | that their government should default in it's | peculiary obligations, or that it's hnanc ial | operations should be reduced to a silver basis. | At any rate should not feel that my duty
 done if omitted any effort could
 make to avert such calamity. As long, | therefore. as no provision is made for the | final redemption or the putting aside of the | currency obligation now used to repeatedly and constantly draw from the government its gold, and as long no better authority for
 bond issues is allowed than at present exists
 such authority will be utilized whenever and as often as it becomes necessary to maintain Q | sufficient gold reserve and in abundant time to
 save the credit of our country and make good the financial declarations of our government Questions relating to our banks and currency
 are closely connected with the subject referred | to; they present some unsatisfactory features. Prominent among them arc the lack of elasti- city in our currency circulation and It's fre- Quent concentration in financial centers when it is most needed in other parts of the country. The absolute divorcement of the government | from the business of banking is the ideal rela- 1 tionship of the government to the circulation | of the currency of the country This condition cannot be immediately reached but as Stepin that direction and as a meauS of securing
 more elastic currency and obyiating other ob- iections to the present arrangement l of bank circulation the secretary of
 the treasury presents his reported scheme
 modifying present banking laws and
 providing for the issue of circulating notes by
 state banks free from taxation under certain limitations. The secRtary explains his plan
 so plainly and its advs6tages are developed by him with such remarkable clearnesS that any
 effort on my part to present arguments in its
 support would be superauous. shall therefore
 content myself with an unqualified indorSe-
 mcnt of the secretarys proposed changes in
 the law and brief and imperfect statement of
 their prominent features.
 It is proposed to repeal all laws providing
 for the deposit of United States bonds as se-
 curity for circulation; to permit national
 banks to issue circulating notes not exceeding
 in amount 75 per cent. of their paid up and un-
 impaired capital provided they deposit with
 the government as a guarantee fund In Unlted | States legal tender notes, including treasury | notes of 1890, sum equal in amount to 3 per
 cent. of the notes they desire to issue this de l posit to be maintained at all times but when
 ever any bank retires any part of its circula-
 tion a proportional part of it's guarantee
 fund shall be returned to 1t; to per
 init the secretary 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 cir
 culation, and to repeal the provision of the
 present law imposing limitations and restric-
 tions upon banks desiring to reduce or increase
 their circulation, thus permitting such increase
 or reduction within the'limit of 75 per cent of
 capital to be quickly made as emergency may
 arise In addition to the guarantee fund re-
 quired it.is proposed to provide satety fund
 for the immediate redemption of the cir ing
 notes of failed banks by imrtE
 small annual tax, say s.o4, --at
 of per cent upon the average circulation of
 each bank until the fund 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 re-
 deemed in the first instance from such safety
 fund thus augmented; 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 prorata as
 sessment among the other banks, ther
 contributions constituting a first lien
 upon the assets of the failed bank ln
 favor of the contributing banks
 That each national bank, except in case or a
 failed bank, shall redeem or retire its notes in the first instance at it's own office or at agencies