Fisherman & farmer. [volume] (Edenton, N.C.) 1887-19??, 1894-12-14

not only calculated to relieve the CON-
sumers of our lani in the cost OF their
daily life, but to invite a better develop
ment of American thrift and create
for Us closer and more profitable com
mercial relations with the rest of the
world, It follows as a logical and I'M
perative necessity that We should at
once remove the chief II not the only
obstacle which has 50 long prevented our
participation in the foreign carrying trade
of the sea-a tariff built upon the theory
that It is we'll TO check imports and that
home market should bound the industry and
effort of American registry TO vessels built
abroad though owned and navtgated by our
people, thus exhibiting e willingness to
abandon all contest for the. advantages OF
American transoceanic carriage. Our
new tariff policy, built zpon the theory that
il Is wellto encourage such importation5 as
our people need. and that our products and
manufactures should find markets In every
part of the habitable globe. is consistently
supplemented by the greatest possible lib
erty to our citizens in the ownership and
navigation of ships in which our products
and manufactures may be transported. The
millions now paid to foreigners for car
ryiug American passengers and prod
ucts across the sea should be tnrned
into American hands. Shipbuiidng, which
has been protected to strangulation, should
be revived by the prospect of profitable en-
pgoyment for ships when built, and the
American sailor should be resurre cted and
again take his place-a sturdy and industrl-
Gus citizen in time of peace and patriotic
and safe defender of American interests in
the day of conflict.
The anciept provision of our law denying
American registry TO ships built abroad and
owned by Americans, appears in the light OF
present conditions not only to be a failure
for good at every point, but TO be nearer
relic OF barbarism than anything that exists
under the permission of statute OF the
United States. I earnestly recommend its
prompt repeal.
THE BOND ISSUE.
During the last month the gold reserved
in the Treasury for the purpose of redeem
ing the notes of the Government circulating
as money in the hanls of the people became
so reduced, and its further depletion in the
near future seemed so certain, that in the
exercise of proper care for the puplio well
fare, it became necessary to replentsh this
reserve and thus maintain popular faith in
the ability and determination of the Govern
ment to meet as agreed, its pecuniary obll-
cations
1t would have been well, if in this emer-
gency. authority had existed to issue the
bonds of the Government bearing q low rate
of interest and maturing within short
period; but the Congress having failed TO
confer such authority, resort was necessarily
had to the resumption act of 1875, and pur-
suant TO its provisions, bonds were issued
drawing interest at the rate OF five per cent.
per annum and maturing ten years after
their issue, that being tho shortest time
authorized by the act. I am glad to say,
however, that on the sale Of these bonds, the
premiums received, operated TO reduce the
rate of interest to be paid by the Government
to less than three per cent.
/ cannot for moment believe that any OF
our citizens are deliberately willing that
their Government should default in It's Pc
cuniarY obligations or that its financial oper-
ations should be reduced to a silver basis.
At any rate I should not feel that my duty
was done If l omitted any effort [ could
make to avert such calamity. AS long
therefore as no provision is made for the
final redemption or the putting aside OF the
currency obligation now used to repeat
eddy and constantly draw from the Govern
ment its gold, and as long as no better au-
thOrity for bond issues is allowed than at
present exists such authority will be utilized
whenever and as often as it becomes neces-
sary to maintain a sufficient gold reserve,
and in abundant time to save the credit OF
our country and make good the financial
declarations of our Government.
Questions relating to our banks and cur
rency are closely connected with the sub
ject Just referred to, and they also present
some satisfactory features. Prominent
among them are the lack of elasticity in our
currency circulation and its frequent con-
centration in financial centres when it is
-~~OSN 49, ONA~OA E''~ANS
DIVORCE GOVERNMENT AND BANKS.
The absolute divorcenent Of the overn-
ment 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 imn9 lately
reached but as a step in that direction and
a means of securing a mora elastic cur
rcncy and Obviating other objections to the
present arrangement Of bank circulation,
- ,,1
his report q scheme mo lifying present bank
ing laws and providing for the issue OF cir
culatng notes by State banks, free from tax
alton under certain limitations.
The Secretary explains his plan so plainly.
and its advantages ara developed by him
with such remarkable clearness, that any
effort on my part to present argument in its
support would be super1uous. ] shall,
therefore, content mysolf with unQualt-
fed Endorsement of the Secretary's pro-
posed changes in the law and a brief and
imperfect statement OF their prominent fea-
lures.
1t is proposed to repeal all laws providing
for the deposit OF United States bonds as Sc
curity for circulation; to permit National
banks to issue circulating notes not ex-
ceeding in amount seventy-five per cent. of
their paid-up' and unmpaired capital, pro-
vided they deposit with the Government, as
a guarantee fund, in United States legal
tender notes, including Treasury notes Of
1890, sum equal in amount to thirty per
cent. of the notes they so desire to issue,
this deposit to be maintained at all times, but
whenever any bank retireS any part of
its circulation proportional part OF its
guarantee fund shall be returned to it /; to
permit the Secretary Of the Treasury to pre-
pare and keep on hand ready for issue, in
case an increase in circulation is desired,
blank National bank notes for each bank
having circulation, and to repeal tie prOvi-
Sions of the present law imposing limitations
and restrictions upon banks desiring to re-
duce or increase their circulation-thus per-
hitting such increase or reduction within
the limit of seventy per cent. Of capital
to be quickly made as emergencies arise.
In addition to the guarantee fund re-
quired. it is proposed to provide a safety
fund for the imDsediate redemption Of the
circulating notessof failed banks, by impos-
ing small annual tax, say one-half of one
per cent upon Ahe average circulation OF
each bank until tie fund amounts TO five per
cent. of the total circulation outstanding.
When bank fails its guarantee fund is to
be paid into this safety fund and its notes
are to be redeemed in the first instance
from such safety fund thus augmented
and impairment of such fund caused
thereby to be made good from the
immediate available cash assets of said
bank, and if these should beinsuff1cient such
impairment to he made good by pro rata as
sessment among tho other banks, their con-
tributions constituting a first lien upon the
assess Of the failed bank in favor OF the con-
banks. AS further security it is
contemplated that the existing provision fix
ing the individual liability of stockholders is
to be retained and the banks Indebtedness
on account Of its circulating notes is to be
made a first liaSl~sn all its assets.
For the purpose CT meeting the expense OF
printing notes, official supervision, cancella-
ton and other like charges there shall be
imposed tax of say one-half Of one per
cent. per annum upon the average amount
of notes in circulation.
1t is further provide that there shall b
no National bank notes issued Of a less de-
nomination than ten dollars that each Ma
tonal bank, except in case Of failed bank,
shall redeem or retire its notes in the first
instance at its own Office or at agencies to
be designated by it, and that no fixed re-