Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1895-10-18
.]lIll,IdA.M ON MONEY! \ !.
The Minnesota Ex-Governor.
Addresses the Bankers
5.5a Il. Il. at Atlanta. ..9
nCurrency Of the Twentieth
Century" the Subject Of
His Talk.
Retiring Greenbacks and Sher-
man Notes a Feature OF
the Plan.

x ATLANTA, Oct. 16.-The American
Bankers association began it's sessions
in the Grand Opera House at 10 o'clock,
with an unusually large attendance OF
delegates and liberal sprinkling OF
visitors and onlookers. The association
was welcomed to the city in a brief
speech by Mayor Porter King, and to
the state by Hon. G. G. Jordan, pres.-
dent Of the State Bankers association.
To these words Of welcome President
Odell replied in behalf Of the visiting
bankers and delivered his annual adj
dress. Among the papers read during
the afternoon session was one by ex-
Governor Merriam of Minnesota on
1.-THE Currency Of the Twentieth Cen
tury.'' His suggestion was:
"That, say 40 per cent Of the capital
of a national bank be invested III United
States notes, and circulation be issued
AGAINST the same, the bills remaining in
the hands Of the treasurer, and currency
to an amount equal to the remaining 90
per cent Of the capital stock to be deliv-
cred to the Eank for issuance when de-
sired. Before the unsecured currency
is forwarded, however, each bank should
pay to the treasurer IN amount equal to
Five Per Cent of Its Capital Stock.
as a bank circulation safety fund.-
upon which money the government
should allow interest at the rate of 3 per
cent per annum. The government, in
case the assets of insolvent banks be in
sufficient to reimburse it fer the circu-
lating notes Of defaulting institutions,
may assess each bank in the system, pro
rata to an amount sufficient to fully in
delnnify it for the loss incurred, but in
any one year no institution shall be as
sessed more than1 per cent Of its aver
age circulation for the previous year.
Inasmuch as there are likely to be at
least 1900 banks organized under any
national law. the treasurer might act as
redeeming agent for all of the tanks
and each bank should at all times keep
with the treasurer per cent Of its capi-
tai stock as a redemption fund, which
fund should be in gold coin and held III
trust for the
Specific Purpose Inter. led.
As fast as notes are redeemed the Lanl
should at once remit sum that w riu
repair any deficiency made by redel,l,,-
ton and new notes be forwarded III
as1nuch as the banks would make Il
profit out of the circulation not secured
by United States notes or Sherman
notes, it is right that all Of the banks
nl~ fo~
notes to the government for the priv.
lege accorded them. The tax should be
made sufficiently large 10 pay all the
expenses of the Office Of the comptroller,
including the printing Of bank notes,
engraving, etc. Every bank desiring to
become national should pay a tax Of 2
per cent per annum upon the amount
of its average circulation. It can at
once be seen that whenever the demands
for money are sufficiently active to en-
able banks to lend their funds at prices
that will
Net Them Over Two Per Cent,
there will be an incentive to put out the
currency, but when it is worth less than
that amount, as it has been in New
York and Boston for some months, the
unsigned bills would remain in the
vaults. The government would receive
several millions of dollars per annum
into it's Golfers to aid III paying its bills,
as return for the privilege granted the
banks. In addition, the interest on
800, 900 of gold now maintained in idle
ness would be saved and the gold put
into active use instead Of being out of
the channels Of trade, there being no
further use for a gold reserve as the
bulk of the greenbacks and Sherman
notes would be absorbed as basis for
currency or as reserve against deposits
in banks