The citizen. (Frederick City, Md.) 1895-1923, 1895-12-06
Bank Circulation.

Iley issue.
Bank Circulation.
think they should be allowed to is.
sue circulation equal to the par value
of the bonds they deposit to secure it,
and that the tax on their circulation
should be reduced one-fourth of one
per cent, which would undoubtedly
meet all tie expense the government
incurs on their account. In addition
they should be allowed to substitute or
deposit in lieu of the bonds now re.
quired as security for their circulation
those which would be issued for the
purpose of retiring the United States
and treasury notes. The banks al
ready existing, if they desired to avail
themselves of the provisions of the
law thus modified, could Asue circula-
ton in addition to that already out
Z standing, amounting to S47EOoo, 900,
which would nearly or quite equal the
currency proposed to be cancelled AT
any rate, should confidently expect
to see the existing national banks or
others to be organized avail them ie.v.;
of the proposed encouragements t. IS.
sue circulation, and promptly. fill any
vacuum and supply every currency
need. 1t has always seemed to me
that the provisions Of law regarding
the capital of national banks which
operates as limitation to their loca.
aon fails to make proper compensa-
ton for the suppression of state banks,
which came near to the people in all
sections of the country and readily fur.
nished them with banking accomoda-
lions and facilities. Any inconve-
nience or embarrassment arising from
these restrictions on the location Of
national banks might well be remedied
by better adapting the present sys-
tenn to the creation of banks in smaller
communities or by permitting banks Of
large capital to establish branches in
such localities as would serve the peo-
ple-so regulated and restrained as to
secure their safe and conservative con-
troll and management. But there might
not be the necessity for such an add.
-taon't0the currency by new issues Of
bank circulation as at first glance is
indicated. If we should be relieved
from maintaining gold reserve under
conditions that constitute it the baro-
meter of our solveney, and if our
treasury should no longer be the fool
ish purveyor of gold for nations abroad
or for speculation and boarding by our
citizens at home, l should expect to see
gold resume its natural and normal
functions in the business affairs of the
country and cease to be an object at
tracing the timid watch of our people,
exciting their sensitive imaginations
whatever is attempted should be en-
tered upon fully approaching the fact
uAt by careless, easy descent we have
reached dangerous depth, and that
our ascent will not be accomplished
withof faborious toll and struggle. We
shaif De wise if we realize that we are
financially i'll and that our restoration
to health may require heroic treatment
and unpleasant remedies. In the pres
emit stage of our difficulty it is not easy
to understand how the amount of our
revenue receipts directly affects It.
The important question is not the
quantity of money received in revenue
payments, but the kind of money we
maintain and our ability to continue in
sound financial condition. We are con-
sidering the governments holdings of
gold as related to the soundness of our
money and as affecting our national
credit and monetary strength. II our
gold reserve had never been impaired
II no bonds had ever been issue,
to replenish it; If there had been no
fear and timidity concerning our ability
to continue gold payments; If any part
OF our revenues were now paid In gold.
and Il we could look to our gold re-
ceipts as means Of maintaining safe
reserve, the amount Of our revenues
would Be an influential factor IN the
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