The National tribune., 1894-12-06

| aside Of the currency obligation now used to
repeatedly and constantly draw from the Gov.
ernment it's gold. aud as long no better
authority for bond issues is allowed than at
present exists, such authority will be utilized
| whenever and rs often as il becomes necessary
| to maintain q sufficient gold reserve and in
| abundant time to save the credit OF our country
| and make good the financial declarations of our
| Government.
| Questions relating to our banks and currency
are closely connected with the subject just re-
ferred to- and they also present some unsatis-
factory features.
MORE ELASTIC CURRENCY NEEDED.
Prominent among them are the lack of elas-
| ITCHY in our currency circulation and Its fire.
quent concentration in financial centers when
| il is most needed in other parts OF the country.
The absolute enforcement of the Government
TO the circulation OF the currency OF the coun-
try. This condition cannot be Immediately
reached but, as a step in that direction, and
as a means of securing n more elastic currency
and obviating other objections to the present
arrangement of bank calculations, the Secre-
tary of the Treasury presents in his report
scheme modifying present banking laws, and
providing for the issue of circulating notes by
State banks, free from taxation, under certain
limitations.
ENDORSES SECRETARY CARLISLE.
The Secretary explains his plans SO plainly,
and its advantages are developed by him with
such remarkable clearness, that any effort on
my part to present argument in its support
would be superfuous. 1 shall, therefore, con-
tent myself with an unqualified Endorsement
of the Secretary's proposed changes in the law,
and brief and imperfect statement OF their
prominent features.
1t is proposed to repeal all laws providing for
the deposit of United States bonds as security
for circulation; to permit National banks TO
issue circulating notes not exceeding in amount
70 per cent of their paid-up and unlmpalred
capital provided they deposit with the Govern
ment, as guarantee fund, in United States
lega-tender notes, including Treasury notes OF
1890, sum equal in amount TO 80 per cent oil
the notes they desire TO issue, this deposit TO be
maintained at all times, but whenever any bank
retires any part of its circulation proportional
part of its guarantee fund shall be returned TO
it; to permit the Secretary of the Treasury to
prepare and keep on hand ready for issue, in
case an increase in circulation is desired, blank
National-bank notes for each bank having cir
culation, and to repeal the provisions of the
present law imposing limitations and restric-
tions upon banks desiring to reduce or increase
their circulation, thus permitting such increase
or reduction within the limit of IS per cent. of
capital to be quickly made as emergencies
arise.
In addition to the guarantee fund required
it is proposed to provide safety fund for the
immediate redemption of the circulating notes
of failed banks, by imposing small annual
tax, say one-half of j per cent, upon the aver
age circulation Of each bank until the fund
amounts to 5 per cent of the total circulation
outstanding. When a bank fails its guarantee
fund is to be paid into this safety fund and its
notes are TO be redeemed in the first instance
from such safety fund thus augmented, any
impairment of such fund caused thereby to be
made good from the immediately available
cash assets of said bank, and if these should be
insufficient such impairment to he made good
by pro rata assessment among other banks,
their contributions constituting first lien
upon the assets OF the failed bank in favor of
the contributing banks