Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1894-12-08

e 49, 80 or noNps

TIE REcEST SALE OF BONDS
During The las: month the gold reserved IN
The treasury for tie purpose q redee1lng the
-o.ss Of me government circulating g money
Il the hands n TIE people oeeaMe % Eeaueed.
and - further depletion II The near future
seemed 20 certain. nat n The exercise OF
proper care for The p2blc welfare IL became
Eecesssrv 10 repleztsh this reserve and thus
maintain popular fa!ta in the ability ana oe-
termination q the government 70 meet, g
agreed its p@culiary obligations II Wo1id
have been sell il IN. eEef~e4cE authority
had existed 70 issue the bonds o. the GOVERN
ms2L bearing . !JS rate p interest,"
and maturing within Q speclai per4od-
But the congress having failed 70 confer sucn
authority. resort vas necessarily laC 70 tlt re-
s.mUt.ol act = ia. and pursuant 70 is proyi-
siCl~. bonds were 4>sls1 drawing interest az
the rate o. ) per cel- Per zIEIL 4-l maturing
ten yesrs after tl1.r Issuing mat being the
shortest time author I'D By the act. an Ilad
10 say. however, tlat on tue SIZE o. tAese
5cud- the premiums received operated 70 re-
d-ce the rate o. Interest % oe paid % the gov
er-Eeat 70 less ihsn -. cent
NOTHING C5CI Bg WORSE
or further removed from sensible finance than
the relations existing between me currency
the government nas l-1e1, Tue E5-G held ior
lr, redemption and the means Wllch
aust be ~Fe-gr;=i 70 for The purpose d replen-
l-A41g such redemption fund T-eL impaired
Even Z the claims upl. tlN Ibl we're Goa
Gucd 10 the obligations orE.l--4F intended,
l.A u at .GaEs.Eraa4 W HAf- -"A-HN-tPt'
meant tEeir cancellation ihe iona "9lla ne
yerT small. But thes- Obligations TAel re-
Z eeiTe4 and redeemed ID ry.l are lyt eaAce!cq.
] 1-t ere Teissuc4 md mas DO DUTY UsLt ilMes
yy Uay Of orANtn2 gold from lLe treasury
Thus Ws have az endless chain Il operation
I constantly
DEPLErisG z IEEAs-RYs COLD
and never near . FINAL rest. A,lt this "as not
I BAD enough. we have Ly o statutory ceclara-
[ ZION that u l. the policy % Lls government
- - -.- fmH# and silver
aided the force and momentum oi tbs exhaust
. .le process, and added largely 20 the currency
. obligations clalLAt-k t-ls pcc44as goa re-
{ leMptiOu. Our small god reserve j nus SUD-
I .ect 10 drain from eTerg side The demands
I that increase our danger alr Increase the ne
] cessity Of protecting this reserve against &C.
] y.eliol. and Il is mos unsatisfactory 70 Know
I that the protection Afforded - Caly . temporary
palllatlon. 1t is p~eEiee;.y -a1 paipaD4y plain
that
THE OsLT 4 TSDEh PRESENT CONDITIONS
uv which This reser7e. shea dangerously de-
Jls.rI. can bc Fc1.e4.-Ae1 j. through the
ISSUE and -ale li the bonds Of the
government tGf gold 8l1 yet congress mas not
only thus FAR declined 70 a1-IoTlZe iHe issue Of
bonds best suited % such o purpose, Dut mere
seems q disposition ia some quarters 10 deny
both tho necessity and poser Tor the issue Of
bonds u al J. cannot iyr o moment believe
that any 81 our c4tizeusare GeI+yerately "!lIlhs
that their government, should default IN
rs pccuniary obligations, or that its
sDausIal OPERATIONS should be reduced to q
silver basis. At ans rate, ! should not feel
.hat nY duty vas done II omitted
aaT effort / could make
10 AVERT HUCH A CALAMITY.
As long. therefore. O, no provision IS made for
INC final redemption Or the putting aside Of
the currency obligation nOB used 70 repeatedly
and constantly draw from the government Us
gold and Is olg as 70 better authority foi
bond Issues Us allowed tn8n at present exists
such authority viii BE- utilized whenever and
~ often IS il becomes necessary TO maintain q
sufficient gold reserve, and IN abundant time
20 save tae credi, Of our country and max,
good the AEanc.s! declarations u our govern
n.eai
AVID CCRRgHcY.
Question, relating to our banks and curren'
cv are closely connected with the subject just
referred % aL4 they also present some uAsat'
s~iactory features. Prominent among them arr
the LACE d elasticity 10 our currency clrcula'
ton and iu, frequent concentration IN imam
clal cente-s when il Is most needet
@ other parts Of the country
The absolute enforcement Of III
gggeruMent FROM the business Of banking q
the deal relationship of the government to III
circulation u tLe cIrrencyof The country, I'M
condition can not b. Immediately reached: bu
~, q step In That direction ana as a means 0
securing a more elastic currency and o~Dylatlnl
other objections 20 the present engagement 0
] bank circulation. the secretary Of the ~treaslr'
presents Il his report a scheme
N~oDIfYISg PRESENT H~lS LAWS.
and prDyldlug Tor the issue Of circulating note
=. uy state banks free from taxation, under Ger
/. tain limitations. The secretary explains HI
/ plans 50 plainly, and It's advantages are de
4 YelOpef uT him with such remarhaDle clcar
ness. that any effort on my part to prcseu
, argument Zoo lbs support would be Superhuous
] snail therefore content myself with an IN
qualified Endorsement Of the secretary's pro
p0Hed changes IN the law am a brief ana i'm
perfect statement Of their prominent features
u 81 rrgUg-gF tn rgyagl all iaggE UTpVi6iu
for the deposit Of United States bonds as sc
2 curly for circulation: 70 permit national bank
> 70 issue circulating notes not exceeding J
! amount 70 per cent. Of their paid-up and unlm
paired capital, provided they dcpOsl
with the government as a guaran
tee fund IN United States legal tende
7 notes, including treasury notes OF 1874 a SUI
J equal in amount 10 20 per cent. Of the note
they desire % Issue, this deposit 10 be main
tanned Al all times. but whenever any bank re
tires any part Of its circulation o proportions
s part Of It's guarantee fund shall be returned !
II 70 PERM. the secretary OF the treasury !
3 prepare and keep on hand ready for issue !
2 case an Increase in circulation Is desire
Z blank national bank notes for cac
o bank having circulation and TO repea
q the provisions OF the present law 1mposin
r limitations or restrictions upon banks dc
i string to reduce Or increase their circulation
70 thus permitting such increase or reductiO
within ths limit Of IS per cent. OF capital to b
quickly made as emergencies arise.
Il IN ADDITION 70 THE GUARANTEE
Il required. H. is proposed TO provide a safety fun
n for the Immediate redemption Of the clrct
latina notes Of failed banks by imposin
II a small annual tax, say one ba
Of per cent. upon the average circulation
II each bank until the fund amounts to5 per cen
VI the total circulation outstanding. When
n bank falls Its guarantee fund Is to be paid mi
this safety fund and its notes are to be n
such safety fund thus augmented
b. any impairment Of such fund caused theret
d 70 be made good from the immediately-availi
h bic cash assets OF said bank, and II thes
Is should be insufficient such impairment to !
made good by pro rata gsse, sment among Il
other banks, their contributions constituting
first Hen upon the assets OF the failed bank
favor Of the contributing banks.
" AZ A FURTHER SECURITY
8 IL Is contemplated that the existing provisic
y fixing the individual liabilities Of stockbOlde
~ is 10 be retained and the banks indebtedneH
- on account OF It's circulating notes IS 10 |
"a made a first lieu on all its assets.
~ For the purpose Of meeting the expenses
81 printing notes, oficial su peryisi on ,c3ncellatit
and other like charges, there shall be imposed
~ tax OF say oDe-half Of per cent. per annum u
W on the average amount Of notes In circulatiO
It is further provided that there sh,
~ be no national bank note issu,
OF a less denomination than 81
~ That each national bank, except In case Of
"a failed bank, shall redeem or retire It's notes
10 the first instance at its own office or at age
ia cies, TO be designated by 1t: that no fixed r
n serve need be maintained on a. cou
r Of deposits. Another very important featu
u Of the plan Nv the exemption OF state ban
from
TAXATION by THE UNITED STATES
TO In cases where II Is shown to the satisfacti
or OF the secretary OF the treasury and comptrt
h. Ter Of the currency BY banks claiming su
nd exemption that they have not had outstandi
their circulating notes exceeding 70 per eel
H. Of their paid up and unlmpaired capiti
ny that their stockholders are individually II
ve BILE for the redemption OF their circulate
in notes to the full extent Of their ownership
nd their circulating notes constitutes. und
VT assets: that such banks have kept q
maintained o guarantee fund In United Stat
ri legal tender notes, including treasury notes
:. 1890. equal 10 30 per cent. Of their outetandi
a. circulating notes. and such banks ha
IN promptly redeemed their circulating not
r. when presented at their principal or bran
o1ices.
IN conCLusfor
~ II Is quito likely that this scheme may
~ usefully amended In some OF Its details, bu
az am satisfied II furnishes o basis for 9 W
nj great Improvement In our present banking q
M currency system. conclude this commune
Nv ton fully nppreciatipg that the rcspon
bility for oil legislation affecting I
people Of the United States rests UP
at their representatives In tho congress-, d
70, assuring them that whether In raccordan
-iLu recommendation ! hAye ius4s u nol
10 shall DO glad 70 cooperate 10 pcrfccting q
legislation that tends 70 the prosperity .
wslis ss. e our eouniry; aovs. c,rvr.A...
lsiRnspi Pxacu,t... Hny sn stcs "a 4d 1919