The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-12-04
BANKING AND CURRENCY.
Refers to C rlisle's Report, Whose Plan
He Praises Boundlessly.

One ,tious relating 10 banks aud curren-
CIV are closely connected with the subject
just referred to and hey also present some
unsatisfactory features. Prominent
among them are the lacH Of elasticity in
our currency circuiatloi and It's frequent
concentration in financial ceuters when 1t
Is most needed III other parts Of the couU-
try. The Hb-O ute enforcement OF the gov
ernment from the business OF banking Is
the ideal relationship of the government
to the circulation OF the currency of the
country.
This condition cannot be Immediately
reached but as a step in that direction and
"a means of securing more elastic cur
rency and obv atJng OF her UbJ-ct Iuus To the
present arr cement Of bank circulation the
secret ry If the treasury presents his report.
y scheme modifying present banking
laws and providing for the issue of c!rcu-
lating notes by state banks Tree from tax
alton under certain limitations.
The secretary explains his plan so
plainly, and It's advantages are developed
by him with such remarkable ciearuess,
that any effort on my part TO present argu-
M ntS IN its support would be superb lOus.
| shall therefore content myself with an
unqualified endorsement of the secretary's
proposed changes Ia the law rud "A BRIT
and imperfect statement Of their prOmi-
nent fea;u Tes.
NO FURTHER BOND DEPOSITS.
It is proposed 10 repeal all laws prOvid-
ing Tor the deposit Of United states bones
as security for circulation: 70 permit
national hanks 10 issue circulating notes
not exceeding in amount 20 per cent of
their paid up and unImpaired capital, pro-
vldei they deposit with the government as
"A guarantee fund in the Jui ed = ates
legal tender notes. including treasury
notes of 1890. a sum equal IN amount To 80
per cent OF the notes tney desire 10 Issue.
4 1. ..-... a ..ln .
but whenever any bank TeilreS any part CT
its circulation a part OF its guarantee iuud
shall be returned to II; to per-
NIT the secretary OF the treasury TO
prepare and keep on hand ready for issue n
case an increase Ia circulation Is desired,
blank national bank notes Tor each bauk
having cirCul alton; and 10 repeal the pro
visions of the present law imposing limIta-
lions and restrictions upon banks q, s!rin =
10 reduce or increase their circulation.
thus permitting such increase or reduction
within he limit o. - per cent of capital. 20
be gu ckly made as emergency arises. Ia
addition TO the guarantee fund required II
is proposed TO provide a safety fund for
the immediate redemption OF tie CIR
cuiation notes Of failed banks by i'm
posing a SINAI; annual tax, say one-hAlf
Of per cent upon the average circulation
of each bank until the fund amounts 10 )
per cent OF the total circulation UutsLaud-
ing.
WHEN 4 BANK PALS
When a Iauh fails its guarantee fund 6
TO be paid INTO this safety fluid and ij-
notes are 70 be redeemed IN lie first IN
stance from such safety fund thus aug
mented any impairment IF such fund
could thereby he made good from the I'M
m-diately available CASH assets of said
bank, aud If these should be in efficient.
such impairment TO be made good by pro
H.4f ~ hsr.