Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1894-12-06

Quent CONCENTRATION N nnaneiai centers wneI
II IL most needed In other parts Of the country
The absolute enforcement Of the government
from the business VI banking Is the ideal rela.
tionship Of the government 10 the circulation
Of the currency Of the country. This condition
cannot be Immediately reached but as stepil
that direction and rs neaus Of securln .
more elastic currency and obviating other Oh.
jtctions to the present arrangement
Of bank circulation the secretary o.
the treasury presents his reported scheme
modifying present banking laws ant
providing for the issue OF circulating notes By
state banks free from taxation under certait
limitations The secretary explains his plat
70 plainly and its advantages are developed b.
him with such remarkable cearness that any
effort on my part to present arguments In III
support would be superhuous. sha 4 therefore
content myself with an unqualified indorse.
ment Of the secretary's proposed changes IL
the law and brief and imperfect statement Of
their prominent features
It ia proposed to repeal oil laws providing
for the deposit Of United States bonds as Sc.
curlty for circulation; to permit national
banks TO issue circulating notes not excee liaa
Ah ousVtnt ~ ppt sShts VI bA4oAt p1lu ny duu
impaired capital provided they deposit with
the government as o guarantee fund In United
States legal tender notes, including treasury
notes Of 1880, . sum equal In amount to 81 pei
cent Of the notes they desire 10 issue, this dc.
posit to be maintained at all times, but when
ever any bank retlres any part Of Its circula.
tion proportional part Of Its guarantee
fund shall be returned to 1t; 10 per.
nit the secretary Of the treasury tc
prepare and keep on hand ready for Issue 10
case on increase In circulation Is desired blank
national bank notes for each bank having cir
culation, aad 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 increls,
or reduction within the'limlt Of u per cent. Of
capital To be quickly made as emergency may
arise. In addition 10 the guarantee fund re-
CURED 1t Is proposed to provide safety fund
for the immediate redemption Of the circulating
notes Of failed banks by imposing
small annual tax, say one-hali
each bank until the fund amounts to per cen,
Of the total circulation outstanding. When q
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 sul safety
fund thus augmented; any impairment OF such
fund caused thereby 10 he made good from the
Immediately available caah assets Of salt
bank, and II these should be insufficient sucl
impairment to be made good by prorata as
sessment among the other banks, their
contributions constituting first lier
upon the assets Of the failed bank In
favor Of tho contributing banks
That each national bank, except In case Of q
failed bank, shall redeem or retire It's notes Ii
the first instance ct Its own office or OF agencies
to be designated by 1t, that no fixed reserve
used b. maintained on account Of deposits
Another very important feature OF this plan is
the exemption Of state banks from taxation by
the United States In cases where 1t is shown
to the satisfaction Of the secretary Of the treas
ury and comptroller Of the currency by banks
claiming such exemption that they have
not had outstanding their circulating
notes exceeding rs per cent OF
their paid up and unimpairel capital;
that their stockholders ore individually liable
Tor the redemption OF their circulating note, to
the full extent OF the ownership Of stock Tint
the liability Of such banks upon their clrcult-
ing notes constitutes under their state law
first lien upon their assets; that such banis
have kept and maintained u guarantee fund In
United States legal tender notes, including
treasury notes Of 1890 equal TO 80 per cent Of
their outstanding circulating notes and that
such banks have promptly redeemed their cir
culating note when presented at their priacl-
pal or branch office.
T.. H., #