The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1894-12-14
An Exlgency.


An EFFICIENCY.
THE RECENT SALE or BONDS.
During the last month the gold reserved n
the treasury FOR the purpose Of rodeemins mo
notes Of the government circulating as innn.v
In the hands OF the people became 80 reduced
and It's further depletion In the near future
seemed 80 certain, that In the exercise u
proper care for the public welfare II became
necessary 10 replenish this reserve and thus
maintain popular faith In the ability and de-
termination Of the government to meet, As
agreed. its pecuniary obligations 1t Would
have been well II In this emergency authority
had existed 10 issue the bonds Of the govern
, ana maturing within 'ae sper,a ins,a ,
Hut the congress having failed 10 confer such
authority, resort was necessarily had To the re-
sions, bonds were issued drawing interest az
the rate OF per cent per annum and maturing
ten years after their issuing, that being the
to say. however that on the sale OF these
bonds the premiums received operated TO re-
duce the rate ~ interest 10 be paid BY the gov
eminent TO less than per cent
NOTHING COULD BE WORSE.
or further removed from sensible finance than
the relations existing between the currency
the government has istued. the gold held for
| its redemption. and the means which
must be resorted to for the purpose of reptn-
shing such redemption fund when impaired
Even IL the claims upon this fund were con-
fined To the obligations orig inally intended,
and il the redemption OF these obligations
meant their cancellation the fund would 10
very small. Hut these obligations when re-
| cciyed and redeemed In gold arc not canceled.
but rcssued and may do duty many times
| by way OF drawing gold from the treasury.
Thus have an endless chain In operation
constantly
DEPICTING THE TREAsuRY's GOLD
and never near final rest. A. II this was not
bad enough. We have by a statutory dcclAra-
tion that il j. the policy OF the government
TO maintain the parity between gold and silver
aided the force and momentum OF this exhaust
I ing process, and added largely 10 the currency
obligations claiming this peculiar gold
dcmptiun. our small gold reserve is thus sub
ject TO drain from every side. The demands
that increase our danger also increase the no.
ce>sify OF protecting this reserve against de-
/ pletlon, and IL l. most unsatisfactory TO know
I that the protect ion Afforded Is only temporary
palliation. IL Is perfectly and paipabiy pain
that
THE ONLY WAY UNDER PRESENT CONDITIONS
by which this reserve. when dangerously de-
pletcd be repenished j. through the
! issue and sale OF the bonds OF tho
| government for gold. and yet congress has not
| only thus FAR declined 10 authorize the issue u
| bonds best suited TO such a purpose. but there
| seems disposition IN some quarters 20 deny
| both the necessity and power Tor the issue ~
bonds at all | cannot for a moment believe
| that their government should default In
its pecuniary obligations, or that IT.
silver basis. At any rate, should not feel
that my duty was done II l omitted
any effort could make
TO AVERT SUCH CALAMITY
Is long. therefore. as no provision is made Tor
the final redemption or the putting aside IS
the currency obligation now used 10 repeatedly
and constantly draw from the government ~
| gold and as ong as no better authority fot
bond issues j. allowed than at present exists.
such authority viii be utilized whenever and
as often as IL becomes necessary To maintain
sufficient gold reserve. and ia abundant time
to save the credit Of our country aud maiSe
good the financial declarations OF our govern
ment-
hanks AND CURRENCY.
Questions relating to our banks and curren-
CIV are closely connected with the subject Just
referred to and they also present some unsat-
isfactory features. Prominent among them are
| the lack OF elasticity in our currency ctrcula-
tioa and its frequent concentration in fnan-
cial centers when II is most needed
The absolute enforcement OF tho
government from the business Of banking 10
the ideal relationship OF the government 10 tho
circulation OF the currency Of the country. This
condition can not be immediately reached. but
as a step in that direction, and as means Of
other objections 10 the present arrangement of
bank circulation. the secretary OF the treasury
presents in his report a scheme
MODIFYING PRESENT BANKING LAWS
and providing for the issue OF circulating notes
by state banks free from taxation. under cer-
tain limitations. The secretary explains his
plans so plainly. and its advantages are de-
velopcd by him with such remarkable clear
ness. that any effort on my part 10 present
argument in its support would be supcrfuous-
| shall therefore content myself with an un-
posed changes in the law. ana q brief and inn
perfect statement OF their prominent features
FOR the deposit Of United states bonds as so-
| curity for circulation, to permit national banks
10 issue circulating notes not exceeding IN
amount IS per cent OF their paid-up and unin :
paired capital, provided they deposit
with the government as guaran-
tee fund in United States legal tender
notes. including treasury notes Of 1874 q sum
equal in amount to ~ per cent. Of The notes
they desire 10 issue. this deposit 10 be main
tanned at all times but whenever any bank re-.
tires an; part Of It's circulation Q proportional
part OF IL guarantee fund shall be returned to
II to permit the secretary OF the treasury 20
prepare ana keep on nana r.aoy i1f Issue "
blank national bank notes for each
bank having circulation. and to repeal
limitations or restrictions upon banks de-
string to reduce or fncreasestheir circulation.
thus permitting such increase or reduction
| within the limit 81 IS per cent Of capital TO be
! quickly made a. emergencies arise.
IN ADDITION TO THE GUARANTEE
required. i. Is proposed to provide . safety fund
for the Immediate redemption o. the circu-
lating notes of failed banks BY imposing
a small annual tax. say one hall
OF per cent. upon the average circulation oi
each bank until the fund amounts 10 per cent.
Of the total circulation outstanding when =
bank fails its guarantee fund IN TO he paid into
this safety fund and its notes are 10 be re-
such safety fund thus augmented.
any impairment Of such fund caused thereby
! 10 be made good from the Immediately -avalla-
BILE cash assets of said bank. and IL these
should be insufficient such impairment to be
made good by pro rata e~sment among the
other banks. their contributions constituting z
first lien upon the assets OF the failed bank in
favor OF the contributing banks.
ASA FURTHER SECURITY
IL IS contemplated that the existing provision
fixing the individual Liabilities 81 stool holders
il to be retained and the bank indie btcdneSs
on account OF its circulating notes rs TO be
made first lieu on all its assets.
For the purpose OF meeting the expenses OF
printing notes. oflciai supervise on cancellation
and other like charges. there shall be Imposed a
, tax OF say onc-half ~ per cent per annum up
on the average amount OF notes In circulation
IL Is further provided that there shall
be no national bank note issued
! That each national bank. except In case Of q
: failed bank, shall redeem or retire It's notes IN
| | the first instance al its own Office mt agcn
cies. to be designated by It: that no fixed re-
serve need he maintained on "a count
OF deposits. Another very important feature
Of the plan Is the exemption OF state banks
: from
TAXATION ny THE UNITED STATES
, In cases where IL Is shown to the satisfaction
. OF the secretary Of the treasury and coinptrol-
Ter OF the currency bv banks claiming sucn
exemption that they have not had oufstandina
their circulating notes exceeding 40 per cent
Of their paid up and un .mpaireu capitai'
that their stockholders are individually la
|. Bile for the redemption OF their circulating
notes TO the full extent Of their ownership OF
stock: that the liability OF said banks upon
, their circulating notes constitutes. under
: their state law. irst lien upon thei!
assets. that such banks have kept and
! maintained "A guarantee fund in United States
legal tender notes including treasury notes Of