The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-03


government. This return should not,
however, be of such a character as to
defeat the ends sought in the privilege
given. The currency redemption of the
legal tender issues and the treasury
issues under The act of 1890 and the re-
issuing instead. of cancellation OF the
same must always create distrust of
the governments credit abroad and at
home, 50 long as the laws now upon
the statute book remain unchanged.
The general government ought to
be wholly free from the direct issuing
and redeeming Of notes to pass as
money among the people. No govern
ment has ever yet successfully engag-
ed in so doing, and the experience of
the government of the United States
has proven no exception to the rule.
The general cost and loss entailed up
on the government and tine period of
uncertainty 10 the governments credit
and stability of our monetary system
have been SO great as to make the le-
gal tender and treasury issues Of 1880
one of the extraordinary burdens
placed on the people.
These issues ought to be redeemed
and cancelled and the government thus
enabled to retire from the banking
business, q business for which it is
poorly equipped. The intention of
those who first authorized the legal
tender issues was that it should SO re-
tire at the earliest practicable moment.
The first congressional enactment
signed by President Grant after his in
auguration as chief executive was one
reasserting the determination Of the
government to preserve, uGquestioned,
the public faith, and the closing clause
of it was: And the United States also
solemnly pledges its faith to make pro-
vision at the earliest practicable period
for the redemption of United States
notes in COIN
I'm the light of the present condition
of the governments finances the
comptroller continues, that which
ought to have been done when there
was a surplus in the treasury cannot
now be undertaken, and the same con-
dition must continue to weaken the
country's credit and plague the lines
of business, unless means is devised
for removing these issues from the
channel OF current redemption until
such time as the government finds it
self in a position to do that which at
first was the intent of all-gradually
and cancel them. The ultimate
redemption Of coin, of course, must ii
be upon the government, but the en-
barrassment does not arise from their
ultimate, but from their current re-
demption. It is, therefore, suggested
that if Congress shall repeal the pro-
visions of the present act requiring the
national banks to make a deposit of
government bonds in order to secure
circulating notes, and substitute there
for a provision giving them, instead,
the right to issue the same against
their assets, it Incorporates therein,
and as part thereof that as prere-
quisite to so doing, the banks be COM
PEELED to deposit with the treasurer Of
the United States legal tender issues
or issues under the act of 1890 equal
in amount to the difference between
the percentage of their capital stock
of issue granted against their assets
and the total of such capital stock.
THE deposits thus made ought to re
main with the treasurer until the bank
ceased, either through voluntary or in
voluntary liquidation, to do business,
and in that case the government ought
to redeem and cancel such treasury is
sues deposited. AS against this de-
post of legal tender and treasury notes
SO made, there should be issued to the
banks. dollar for dollar, national bank
notes. either of the same or different
design as might be deemed best. The
of the bank notes issued
against this deposit should be free from
any taxation imposed upon circulation,
and ought to be such percentage as Is
deemed equitable to be used as part
of the banks legal reserve held against
deposit.
1.-THE government should not under
take or in anywise become responsible
for the current redemption OF these
notes. Its responsibility should end
with its redemption of the notes de-
posted to secure such circulation when
the bank ceases to exist. At present a
current redemption fund of 5 per cent
of the outstanding circulation is found
sufficient, and it is probable that an
the future no greater amount would be
required.
THE elasticity of issue in the national
bank circulation will be found in the
percentage of issue against assets sub
ject to the necessary rate OF taXations
and insured by an adequate safety fund
to guarantee the note holders against
loss. The government will be aided,
the bank given in exchange q dollar Tor
every dollar deposited and thus re-
lieved of the loss incident TO depOsiting
an amount of its capital stock in excess
of the return in notes granted II. No
violent contraction of the currency
would follow such a course, but when
ever contraction occurs it would be
not less gradual than at other times thc
expansion incident thereto
TT is suggested that as a necessary
element to the securing Of proper elias
ITCHY of issue in our bank note cur
rency. section 9, act July u, 1892, regu-
lating the retirement and issuing of
to banks within a fixed per
iod of time, should be repealed, and
also that an amendment should be
banks keeping in the Office of the comp
troller of the currency a sufficient
amount of bank notes as will enable
them to secure circulation at once in
stead of after a period of delay.
Suggestions have been received from
many eminent sources that the whole
question Of a banking and currency
system ought to be referred by Con-
gress to a committee to be created by
law, appointed by the President and
clothed with proper authority.
A commission, non-partisan in its
composed of men OF eminent
abilities, could unQuestionably devise a
system sound in every part
and one which would commend itself
to every interest of the country 1t
could largely take the question out of
politics and have it considered simply
in its business aspects. and upon its |
merits; but If the present Congress is |
to enact law upon the subject the
Of commission could |
avail nothing. If, however. nothing
more definite can be accomplished. the
question Of the creation of such a com |
binatiOn ought to be considered and
acted on.
BIG SHIPMENT.
About the handsomest shipment of |
ore made from this point at one time
within the past season was that from
the West Side mine on the Gath and
26th ult, by Jack Harrison and part |
ner. lessees. It was sampled at the