The morning times., 1895-12-17

that coin in the per cent redemption fund.
and, although the government would be
under no legal obligation TO redeem with
pusited, there might be circums tances
under which its refusal to do so would
create financial disturbance by impairing
confidence in the value of the notes.
AGAINST THE PRESENT SYSTEM.
"One OF the most serious objections here
toforc urged against the system as IL now
exists has been that. while 1t is well ada pted
to largo commercial communities. where
capital Is easily concentrated. IL has not
furnished the necessary banking facilities
TO the small centers OF local trade where.
especially at certain seasons OF the year.
such facilities are greatly needed 10 assist
In cultivatinC. gathering. and removing
our surplus agricultural prodets.
All our trade in these Droducts. which
constitute such large and important part
of our domestic and foreign commerce.
begins in the localities where they are
grown, and IL Is there that the means Tor
their jirst movement must he provided.
1t must be evident. therefore. that any
system which viii promote such II dis
tribution or the loanable capital OF the
country as VIII make IL easily Access fhle.
upon reasonable terms, to the producers
and purchasers of these products. must be
highly beneficial to both. and l am salts
fled that. under present conditions. the only
successful attempt that can be made 10 Sc
cure these bepefits is So to amend the law,
as to permit national banking associa tiOns
10 tsl9DilsD DIuUC1tS tue lrSHSHetFDu
OF all kinds or business now authorized.
except the issue OF Circulating notes.
OPERATION OF BRANCH BANKS.
During The past year official ipforma
ton has been collected through the office
of the Comptroller OF the Currency in rela-
ton 10 the banks and banking systems Of
wenty-ftve countries, from which IT appears
that, though their systems differ widely
in many otner respects, they alt permit the
establishment and doperationuI branch banks.
aud one OF them, France, makes their es-
tabiisGmeut compulsory. In nearly all the
Old State banking systems In this country.
branches for tue transaction of CONNER
cial business, and, In some cases. for the
issue OF notes, were provided for, and they
are now authorized and in operation un-
der the laws OF twenty States. So far as
known, tie policy or permitting the csJab-
lishmeut of braDchesilas been entirely sue
ceSsrul, and the fact that IL has been adopt
cd aud adhered To by so many countries IN
different parts or the world affords good
reason FOR the belief That 1t would not
fail 10 JSoducc satisfactory results here
as a feature OF our national banking sys-
TEN.
1T is not probable that any pan for the
permanent retirement of the United states
notes and Treasury notes Will he adopted
that Will not lee tire considerable time lor
its complete execution. and therefore re-
spectfuiy urge upon Congress the pro-
DrIety of prohibiting any future issues OF
such notes, or OF nauonal-Ddnk notes OF
less denominations than ten dollars.
THE reasons for lnis recoirIiisiuation
have been fully stated IN former reports. and
need not he repeated here. Such policy
would make room in the circulation for sill
yer coins and silver certificates OF small
denominations, thus increa slug Their use
among the people in the transa ction OF their
daily business, and preventing their frequent
return to. and accumulation In. the Treas
ury. The large silver certificates now
outstanding could bs retired ana Cancelled
when received, and smaller ones sutsti-
tuted for them. SO that there would Se no
diminution Of the Amount of snaflcurrency
in circulation, and the ultimate result would
be an increased use OF our present stock or
silver in the form OF s,lhsidiarg coin or
standard dollars and certificates.
- REVENUES FOR 1895.
The report states that the revenues OF
the government from all sources for the
fiscal year ended June 80, 1888. were
$500, ,373 203.3O, and the expenditures
S433. IFS. 426 As, showing d deficit or
S42,Soo, 223.1S.