The record-union., 1894-12-03

suoulu lOt, however, De or such charac-
ter as to defeat the ends sought in the
privilege. The General Government
ought to be wholly free from the direct
issuing and redeeming of notes to pass as
money among the people. In the light of
the present condition of the Govern
ments finance, that which ought to have
been done when there was a surplus in
the treasury cannot now be undertaken.
but the same conditions must continue to
weaken the country's credit and plague
the lines of business unless means is de-
vlSed for removing these issues from the
channel OF current redemption until
such time as the Government finds itself
in position to do that which at first
was the intent OF all, gradually redeem
and cancel them. The ultimate redemp-
ton of coin, OF course, must all be upon
the Government, but the embarrassment
does not arise from their ultimate but
their current redemption.
ut is therefore suggested that If Con-
gress shall repeal the provisions of the
present Act requiring the national banks
to make a deposit Of Government bonds
IN order to secure circulating notes, and
substitute therefor a provision giving
them instead the right TO issue the same
against their assets, it Incorporate
therein and as part thereof, that as
prerequisite to so doing the banks be
compelled to deposit with the Treasurer
" lIO y lIllOU oLdLSS lOSd1 lSllueE ISSUES
or issues under the Act of 1890 equal in
amount to the difference between the per-
centage of their capital stock of issue
granted against their assets and the total
of such capital stock. The deposits thus
made ought to remain with the Treas
urer until the bank ceased, either
through voluntary or involuntary liqui-
datiOn, to do business, and in either case
the Government ought then to redeem
and cancel such treasury issues de-
posted.
LAS against this deposit 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 designs, as might be deemed
best The percentage of the bank notes
issued against this deposit should be free
from any taxation imposed upon circula-
ton, and ought to be such percentage as
is deemed equitable to be used as a part
Of the banks legal reserve held against
such deposit.
The Government should not under
take or IN any wise become responsible
for the current redemption of these notes,
Its responsibility should end with it's re-
demptlon of the notes deposited to secure
such circulation when the bank ceases to
exist. AT present, current redemption
tund OF per cent. of the outstanding cir
culation is found sufficient, and it is prob
II
would be required.
The elasticity of issue in the national
bank circulation will be found in the per-
centage OF issue against assets subject to
the necessary rate OF taxation, insured by
an adequate safety fund to guarantee the
note holders against loss. The Govern
ment will be aided, the bank given in ex-
change dollar for every dollar deposited,
and thus relieved of the loss incident to
the depositing of an amount equal to
It's capital stock III excess for the notes
granted it.
1T is suggested that as a necessary ele-
menG In securing the proper elasticity
issue IN our bank note currency, Section
., Act OF July II, 1892, regulating the re-
tirement and issuing of circulation to
banks within a fixed period of time,
should be repealed, and also that an
amendment should be made to the law
necessitating the banks keeping in the
oince of the Comptroller of Currency
sufficient amount OF blank notes as will
enable them to secure circulation at once
instead OF after period of delay.
Suggestions have been received from
many eminent sources that the whole
question of a banking and currency sys-
tenn ought to be referred by Congress to a
committee, to be created by law, ap-
pointed by the President and clothed
with the proper authority. A commits
sion, nOn-partisan in character, COM
posed of men Of emiuent abilities, could
unquestionably devise a currency sys-
tenn 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 con-
sidered simply in its business aspects and
upon its merits, but if the present Con-
gress is to enact law upon the subject
the appointment of a commission could
avail nothing"