People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1894-12-27


ure.
The National Banking association OF
Baltimore a few weeks ago proposed
20 perpetuate bank rule by an amend
nent to the banking act containing
line sections. The amendment pro.
rides for the repeal of the provisions OF
he national banking act requiring the
deposit Of bonds to secure circulating
Iotes and in lieu thereof to allow the
banks to issue so per cent of their paid
up capital in ordinary times and %
per cent additional IN cases of emer-
gencies,to be determined by the banks.
The government is required to manu-
facture and print circulating notes for
the banks to issue and guarantee their
redemption. A tax of one half per
cent is to be paid on the average cir
culation of each bank. For this service
a guarantee fund is to be created by
the payment the first year of per cent
upon the circulation received and
thereafter one half of per cent until
the amount reaches per cent of the
entire outstanding circulation, after
which the tax is to be suspended. to be
resumed when the comptroller shall
deem it necessary. In other words.
the banks pay the government one
half Of l per cent for manufacturing
and printing the circulation, which is
probably as cheap as can be done by
private parties; and the banks are to
pay the government per cent for a
guarantee fund, after which the banks
retain the governments money with
out interest.
These so called bank notes are really
government money. The government
prints them and guarantees their re-
demption; but the banks own them
and are at liberty to charge such in
terest on them as avarice NAV dictate
The banking capital, according to
the report of the comptroller of the
currency, amounts to nearly seven
hundred millions. This would give
the banks three hundred and fifty mill
ions OF government money to loan to
the people. 1t is further provided
that the government shall furnish the
banks % per cent in addition to the so
per cent of their capital stock as emer-
gency circulation. This % per cent
che banks are authorized to put out
end retire at their discretion. In other
words, they are to have the power to
expand and contract the currency as
will best suit the banking business
and the business of the spectators
connected with the banks. A more
complete surrender of the sovereign
authority of the government ito coin
money and regulate the value thereof
was never conceived. Why should the
government have a go between to loan
its money to the people and retain all
its tr9fts? i government money is
10 be leaned, why should not the gov.
eminent have the interest.
But why loan it at all? Why not
issue it and put it in the treasury and
save that much taxation? When it is
paid out fer current expenses it be-
longs to the people for them to use in
their business.
Tins gratuity to the banks, although
enormous, and the power conferred
upon them to expand and contract the
currency, are not the worst features
the scheme. The treasury, under the
ruling of the secretary, is now bank
rupt. All the obligations in the United
States, except gold certificates, are pay
able IN either gold or silver coin at the
option Of the government, but the ad-
ministration has surrendered that op-
ton ITO the holders of government paper,
and such holders take nothing but
gold. There are LOO, 900, 900 of paper
and silver in circulation, which ac-
cording to the ruling of the treasury
department and contrary to the stat
utes, must be redeemed in gold with
only about 6O,OOO,OOO of gold with
which to redeem it. About 100000. 900
Of the paper consists of national bank
notes, which, although redeemable in
the first Instance in greenbaclzs, are
Ultimately redeemable in gold because
the greenbacks are redeemed in gold
at the treasury department.
1t is proposed by these amendments
to increase this national bank circula-
ton to one half Of the capital of the
banks-35O, OOO,OOO-or, if the banks
desire, to three fourths of that capital.
or S525, 900, 600. and more whenever the
banks increase their capital stock. If
none OF the paper now outstanding is
retired and the banks should elect 70
issue the full amount there would be
LAPS 600, 200 of silver and paper which.
according to the ruling of the treasury