Marshall County independent. (Plymouth, Marshall County, Ind.) 1894-1895, 1894-12-07


md industrious citizen in time OF peace ant -
patriotic and safe defender of American inter
asts in the day of conflict. The ancient provi-
sion of law derying American registry 10
ships built abroad AID OwEed 10y Americans ap-
to be failure for good at ever point. but TO
90 nearer relic of barhariSm ttan anything
:he United States. earnestly recoumcnd its
prompt repeal.
The Issue Of Bonds.
During the last month the gold reserve in the
Of the government circulating in The hands
" the people became reduced. and its further
depletion in the near future seemed so certain.
that II became necessary 10 replcnsh the reserve
and thus maintain popular faith in the ability
and determination of the government 10 meet;
agreed. its pecuniary obligations. Ii would
have been well if. in this emergency. authority
bad existed 10 Issue bonds of the government
bearing a low rate of interest and maturing
within a short period. But the congress having
failed to confer such authority. resort was neces
sarily had 10 the resumption act of 1919, and.
pursuant TO its provisions. bonds were issued
drawing interest at the rate of per cent per
snnum and maturing ten years after their IS
sue. that being the shortest time authorized by
the set. | glad TO say however. that on
the sale of these bonds. the premium received
operated 10 reduce the rate of interest TO b'
paid by the government TO less than ; per cent
Nothing could be worse or further removed
from sensible finance than the relations existing
between the curreacy the government has issued
the gold held for its redemption and the
means which must be resorted to for tine pur
pose Of repienishng such redemption fund when
were confined to the obligations originally in
tended and If the redemption OF these obliga
tions meant their cancellation, the fund would
ceiyed and redeemed in gold are rot cancelled
but are reissued and may do duty many times
by way Of drawing gold from the treasury.
Thus have an endless chain in operation
constantly depicting the treasurys gold and
never near final rest. as if This was not bad
enough have, by statutory declaration
that IL is the IGlcy OF o inc Tdr aidaI
the force and momentum of this exhausting
process and added largely 10 the currency OBJ
legations claiming this peculiar gold redenlp-
ton. Our small gold reserve il thus subject
TO drain from every side The demands that in
of protecting this reserve against depletion. and
ii is most unsatisfactory 10 know that the pro-
lection afforded Is only temporary palliatioh
way under present conditions by which this re-
serve. when dangerously depleted, can be re
plenshed. Is through The issue ana sale or ponds
of the government for Gold and congress has
not only thus far declined TO authorize the Issue
of bonds hest suited to such purpose. but there
seems disposition in some quarters 10 den!
both the necessity and power for the issue Of
cannot for a moment believe that any of our
citizens are deliberately willing that their gov
,ions' or that lis financial operations should be
reduced to silver basis. AT any rate. !
should not feel that my duty was done IL l
omitted any effort could make TO avert such a
calamity. As long. therefore. as no provision
is made FOR the final redemption or the putting
aside of the currency obligation now used TO
repeatedly and constantly draw from the gov
shnriy fn ,r bond issues is allowed than ~
pr,.;ent exists such authority will he utilizeo
~ mai,tain a suf:cicnt gold reserve and in
abundant time To save the credit Of our country
and make good the financial declarations of our
government.
Favors Ncw Currency system
Questions relating 10 our banks and currency
are closely connected with the subject just re-
ferrod to ard they also present some unsatis,
factory features. Prominent anon. them are
the lack of elasticity in our currency circulation
and its frequent concentration in financial cen.
& nh m NJ 1aF an
the country. Thc absolute enforcement of the
government from the business of banking is the
culation OF the currency of the country. This
condition cannot he immediately CACHED. but as
a step in that direction. and as Il means o.
securing q more elastic currency 'hd obvmtih
ither objections 20 the present arrangement Q:
presents in his report scheme modifying pres
ent banking laws and providing for the issue Of
ipn mndr ho,.s % i,i nam free rom lana
explains his plan plainly and it's advantages
are developed by him with such remarkable clear
ness TINT any effort on my part to Iresent argu-
nent in its support would bc supcrfiuous. | shall
therefore content myself ';ith an unqualified
endorsement OF the secreiHrys pr'pa~d changes
in TIE law and 4 brief and mperfes. statement
OF their prominent features.
The Proposed Plan.
1t is proposed to repeal all laws providing for
the deposit OF United States bonds security
for circulation: to permit national banks to is
sue circulating notes not exceeding in amount 70
tai. provided they DEPOSIT With the government
rs Il guarantee fund in United States legal ten
der notes including treasury notes Of 1890. n
equal in amount 80 per c,.it. of the notes
they desire TO issue. this deposit 10 be main
tanned at all times hut whenever any bank re
tires any part of its circulation proportional
part of its guarantee fund shall he returned t.
il; 10 permit the secretary of The treasury &c
prcIa'c and keep on hand ready for issue i'll
case an Increase In circulation is desired. blaal:
na.ona! hank notes for each bank having cir
culation and In repeal the provisions of tine pres
cnt law imposing Limitations and restrictions
upon ranks desiring to reduce or increase their
anf'ion wilhih me mint OF a.. per cent. OF r.pi
tai to be quickly made as emergencies
CURED. II Is proposed TO provide SAFETY
fund for the Immediate redenption of
imposing Small la annual tax Az say '" one half
of l per cent: upon the average circulation of
OF the total circulation outstanding When Il
bank fails. its guarantee fund is tn he paid into
this safety fund and its notes are 10 be re-
deemed in the first instance from such saicty
fund thus augmentcd-any impairment Of such
fund caused thereby 10 he made good from the
immediately available cash assets Of said bank
and if these should be insufficient. such i'm
pairment to be made good by pro rata assess
ment among the other banks. their contributors
failed bank I'm favor Of the contributing banks
As a further security, II is contemplated that
the existing provision fixing the individual liza
blity OF stockholders is 10 be retained. and the
banks indebtedness on account of its circulat-
ing notes is to be made first lien on all its
assets. For the purpose or meeting the cx
cancellation and other like charges. there shall
be paid tax. say one-half of | per cent per
nnnum the average amount OF notes in circu-
1atiOn 1t is further provided that there shall
he national bank notes issued cf less de-
nomination than $40. That each national bank.
except In case OF failed bank. shall redeem
retire its notes in the first instance at its
office at agencies TO be designated by il.
and that no fixed reserve need be maintained Oh
account Of deposits.
Exemption of State BANKS.
Another very important feature of this plan
Is the exemption of state banks from taxation
by the United States in where ID is shown
TO the satisfaction Of the secretary of the treas
ury and comptroller CT the. currency 10y banks
claiming such exemption that they have not had
outstanding their circulating notes exceeding ~
per cent. of their paid-up and unimDaired capt
tai: that their stockholders Individually liza
bile for the redemption of their circulating notes
10 the full extent of their ownership of stock;
cuIating notes constitutes under their state law
u first lien upon ther assets; that such banks
have kept and maintained guarantee fund In
United States legal tender notes including the
treasury notes of 1890 equal to 30 per cent. OF
their outstanding circulating notes and that
such banks have promptly redeemed Their circu
lating notes when presented at their principal or
} branch of6es.
1t is quite likely that this scheme may be
satisfied IL furnishes basis for very great
Improvement In our present banking and cur
rency syftem.
I conclude this communication fully appre
siatng that the responsibility for all legisla-
ton affecting the people Of the United states
rests upon their representatives In the congress
and assuring them that whether. in accordance