Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1894-12-03
SHOULD CANCEL THE eREeNeAcxs

The Comptroller Wants Uncle Sam to ere
tire from the Banking Business
These issues ought to be redeemed and
cancelled, and the government thus en-
sbled to retire from the banking business,
business for which it is so poorly
equipped. The intention of those who
tirst authorized the legal tender issues was
that it should so retire at the earliest prac-
ticable moment. The first congressional
enactment signed by President Grant after
his inauguration as chief executive was
one reasserting the determination of the
government to preserve unquestioned the
public faith, and the closing clause of it
was: And the United States also solemn
| iy pledges its faith to make provision at
The earliest practicable period for the re-
1emption of United States notes in coin.
In the light of the present condition of
the governments finances that which
| ought to have been done when there was
a surplus in the treasury cannot now be
undertaken, and the conditions must con-
tinue to weaken the country's credit and
plague the lines of business unless means
Is devised for removing these issues from
the channel of current redemption until
such time rs the govern nent finds itself
| in position to do that which at first was
the intent of all-gradually redeem and
cancel them. The ultimate redemption
in coin of course must all be upon the
government, but the embarrassment does
not arise from their ultimate, but from
their curr ent redemption.
1T 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 sub
stitute therefor a provision giving them
instead the right 10 issue the same against
their assets, it incorporate therein and as
a part thereof that, as a prerequisite TO SO
doing, the banks be compelled TO deposit
with the treasurer of the United States
legal tender issues or issues under the act
of 1890 equal in amount to the difference
between the percentage OF their capital
stock of issues granted against their assets
and the total of such capital stock.
THE deposits thus made ought to re-
main with the treasurer until the bank
ceased either through voluntary or in
voluntary liquidation, to do business; and
in either case the government ought then
to redeem and cancel such treasury issues
deposited. Against this deposit of legal
tenders and treasury notes so made there
should be issued TO the banks, dollar for
Halibilui bdHh Vi the
same or different design, as might bt
deemed best. The percentage of bank
notes issued against this deposit should
be free from any taxation imposed upon
circulation. ~
1.-The government should not undertake
or in any wise become responsible 70,
the current redemption of these notes
Its responsibility should end with its re-
demption of the notes deposited to securt
such circulation, when the bank ceases tC
exist. At present a current redemption
fund OF . per cent. of the outstanding cir
culation is found sufficient and it is prob
able that in the future no greater amour,
would be required
The comptroller makes several othe,
suggestions in the line of changes in thu
law necessary To carry ont his ideas and
then refers to the proposal to create /;
commission to revise the system as fol
lows: "A commission, non-partisan il
its character, composed of men of eminent
abilities. could unquestionably devise
currency system sound in every part ana
one which would commend itself to ever,
interest Of the country" But he advise!
its creation only in the event that con
gress itself does nothing directly at thi.
session ON the slhiect