The Forrest City times., 1894-12-07

and maturing within special period. | But the congress having failed to confer such authority, resort was necessarily had 70 the re- | sumption act of 1875, and pursuant to It's prov- | sions bonds were issued drawing interest at the rate of per cent per annum ana maturing | ten years after their issuing, that being the shortest time authorized by the act. am glad to say, however, that on the sale or these | bonds the premiums received operated to re- duce the rate of interest to be paid by the gov- ernment to less than per cent.
 NOTHING COULD BE WORSE,
 or further removed from sensible finance than the relations existing between the currency the government has istued, the gold heId TOT it's redemption, and the means whlcn must be resorted to for the purpose of replen- iShing such redemption fund when impaired Even if the claims upon this fund were con fined to the obligations originally intended, and if the redemption of these obligations meant their cancellation, the fund would be very small But these obligations when re- ceived and redeemed in gold are not cancelled. but are reissued and may do duty many times by way of drawing gold from the treasury. Thus we have an endless chain in operation constantly
 DEPLETiNG THE TREAsURY's GOLD and never near final rest As if this was not bad enough, we have by statutory declara- tion that it Is the policy of the government to maintain the parity between gold and silver aided the force and momentum of this exhaust ing process, and added largely to the currency obligations claiming this peculiar gold re- demption. Our small gold reserve is thus sup-
 
 that increase our danger also increase the ne- ceSsity Of protecting this reserve against de- pletion. and 1t is most unsatisfactory to know that the protection afforded Is only temporary pallation. It is perfectly and palpably plain that
 THE ONLY WAY UNDER PRESENT CONDITIONS by which this reserve, when dangerously de- pleted, can be replenished is through the issue and sale of the bonds Of the government for gold and yet congress has not only thus far declined to authorize the issue of bonds best suited to such purpose, but there seems disposition in some quarters to deny both the necessity and power for the issue of bonds at all. l cannot for q moment believe that any of our citizens are deliberately willing that their government should default in It's pecunlary obligations. that it's financial operations should be reduced to silver basis. At any rate, I should not feel that my duty was done if I 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 government it's gold and as ong as no better authority for bond issues is allowed than at present exists, such authority will be utilized whenever and as often as 1t becomes necessary to maintain a sufficient gold reserve. and in abundant time to save the credit of country and make good the financial declarations of our govern ment.
 BANKS AND CURRENCY
 Questions relating to our banks and curren- cy are closely connected with the subject just referred to and they also present some unsat- iSfactory features. Prominent among them are the lack of elasticity in our currency crcula- ton and it's frequent concentration in fnan- in other parts of the country The aDSolute divorcement of the government from the bus ness of banking is the Ideal relationship of the government to the circulation of the currency of the country This condition can not be immediately reached: but as step in that direction. and as a means of l nl fip I,l,. s,,;. other objections to the present arrangement of bank circulation, the secretary of the treasury presents In his report scheme
 MODIFYING PRESENT BANKING LAWS and providing for the issue of circulating notes by state bank ks free from taxation under cer- tain limitations. The secretary explains his plans so plainly, and it's advantages are de- veloped by him with such remarkable clear ness that any effort my part to present argument In It's support would be superfiuous. l snail therefore content myself with an un- qualified indorsement of the secretary's pro- posed changes in the law, ant q brief and im- perfect statement of their prominent features
 IL IS proposed to repeal all laws providing Tor the deposit of United States bonds as se- curity for circulation: to permit national banks to issue circulating notes not exceeding In amount 70 per cent. of their paid-up and unim- paired capital, provided they deposit with the government guaran- tee fund in United States legal tender notes, including treasury notes of 1894, a sum equal In amount 10 30 per cent. of the notes they desire to issue, this deposit to be main Idiueu dI all IlucS: put whenever any bank re- tires any part of it's circulation proportional part of it's guarantee fund shall be returned to 1t 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 circulation, and to repeal the provisions of the present law imposing limitations or restrictions upon banks de- string to reduce or increase their circulation thus permitting such increase or reduction within the limit of 75 per cent of capital to he quickly made pmprVpneiAS ariSa
 IN ADDITION TO THE GUARANTEE required: IL IS proposed to provide a safety fund Tor the immediate redemption of the circu- latlng notes of failed banks by imposing small annual tax, say one half of per cent. upon the average circulation of each bank until the fund amounts to per cent. of the total circulation outstanding When a bank fails It's guarantee fund is to be paid into this safety fund and it's notes are to be re- ee1 deemed & m the first instance from any impairment of such fund caused thereby to, be made good from the immediately -availa- ble cash assets of said bank and if these should be insufficient such impairment tn he made good by pro rata assessment among the other banks, their contributions constituting a first lien upon the assets of the failed hank in favor of the contributing banks.
 AS FURTHER SECURITY
 1t IS contemplated that the existing provision fixing the individual liabilities of stockholders is to be retained and the bank s indebtedness on account of its circulating notes IS to be made first lieu on all it's assets.
 For the purpose Of meeting the expenses of printing notes official supervis on cane citation and other like charges, there shall be imposed tax of say one-half of per cent. per annum up- on the average amount of notes in circulation It is further provided that there shall be no national bank note issued Of less denomination than BIO That each national bank, except in case of a failed bank, shall redeem or retire it's notes in the hrSt instance at it's own office or at aren- cies, to be designated by it: that no fixed re- serve need be maintained on arcount of deposits. Another very important feature of the plan is the exemption Of state banks from
 TAXATION BY THE UNITED STATES in cases where it is shown to the satisfaction of the secretary of the treasury and comntroI