Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1894-12-06

lht ISSUE OF DOnuS at all. l cannot Tor
moment believe that any of our
citizens are deliberately willing that
their government should defanlt In Its
pecuniary obligation on its financial
operations should bc reduced TO a sill
yer basis, At any rate | should not
feel my duty done II omitted any ef-
fort | could make To avert such a ca
lamity, AS long therefore as no pro
vision Is made for the final redemp-
ton or the currency obligations now
used to repeatedly and constantly
draw from the government its gold
and as long as no better authority for
bond issues is allowed than at present
exists such authority will be utilized
whenever and as often as 1t becomes
necessary 10 maintain a sufficient gold
reserve and abundant time to save the
credit of our country and make good
the financial declaration of our gov
ernmcnt
! A NEW FINANCIAL SCHEME.
THE questions relating to our banks
and currency are closely connected
with the subject Just referred to and
they also present some unsatisfactory
| features. Prominent among them are
a lack of elasticity in our currency
circulation and Its frequent concen-
tration in financial centers when II Is
most needed in other parts of the
county An absolute enforcement
Of the government from business bank.
4 ing Is the ideal relationship OF the
government to the circulation of tho
currency. This condition cannot be
immediately reached. but, as step
In that direction and as q means OF
securing y more elastic currency and
obviating other objections to the pres
ent arrangement of bank circulation,
the secretary of the treasury presents
In his report a scheme modifying the
present laws and providing for the is
sue of circulating notes by state banks
free from taxation under certain lin.
itation. The secretary explains the
plan so plainly and its advantages
developed by him with such remark
able clcarness that any effort On my
part 10 present an argument In It's
suppdrt would Seem supertluous, |
will therefore content myself with an
I unqualified endorsement of the secre.
tary's proposed changes in the law
and u brief and imperfect statement
OF their prominent features II pro
poses 10 repeal all laws providing for
the deposit of United States bonds as
security for circulation, permit Ila,
tional banks to issue circulating notes
not exceeding IN amount Is per cent
of their paldup and unimpaircd cap
ital. provided they deposit with the
government u guarantee fund In
/ United States legal tender notes, In
ending treasury notes of 1900, u sum
equal in amount 10 30 per cent. of the
notes they desire 10 issue. this de.
pOsit to be maintained NJ all times
but whenever any bank reduces any
part Of it's circulation proportional
part Of its guarantee funds shall be
returned to 1t, to permit the secre-
/ tary OF the treasury 10 prepare and
keep on hand ready for issue In case
of an increase In circulation desired
blank national notes for each bank
having circulating; and to repeal
the provisions Of the present law I'M
posing limitations and restrictions
upon banks desiring To reduce or In.
crease their circulation, thus permit
ting such increase or reduction within
a limit OF IL per cent Of the capital
to be quickly made as emergency
arises. In addition 10 the guarantee
fund required, II Is proposed 10 pro-
vide Il safety fund for the immediate
redemption OF the circulating notes
OF failed banks by imposing n small
tax, say one.half Of one per cent. up
on the average circulation Of each
bank until the fund amounts TO FIVE
per cent. Of the total circulation out
standing: when bank fails its guar
antce fund to be paid into this safety
fund and its notes to be redeemed In
| the first instant 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, II these
should be Insufficient, such impair.
ment to be made good by pro-rata
assessment among the other banks.
their contributions constituting a first
lien upon the assets Of the failed
bank in favor OF the contributing
banks AS a further security IT. ~
/ contemplated that the existing pro-
vision fixing the individual liability OF
stockholders shall be rescinded and a
banks Indebtedness on account of It's
circulating notes to be made first
lien on all its assets. For the pur-
pose Of meeting the expense Of print
4 ing notes, official supervision, cancel
latlon and other like charges there
shall be paid tax say OF one-half or
one per cent. per annum on the aver.
age amount Of notes In circulation, II
further provided that there shall be
no national bank notes issued In less
denomination than ten dollars. that
each national bank, except In the case
or failed bank. shall redeem or re-
tire It's notes In the first instance nj It's
/ own Office or at agencies 70 be desig.
mated BY It and no fixed reserve need
y be maintained on account Of deposits.
Another very important feature or