The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-12-02
bond before entering the discharge of

bond before entering the discharge of
their duties.
Sixth-That upon . day in each year to
be designated by the comptroller the
directors of national banks shall be re-
quired to make an examination of the
affairs OF the banks and submit to the
comptroller q report thereon upon the
blanks to be furnished for such purpose.
Seventh-That the com ptroller be au-
thosied TO issue to national ban king asso-
Citations circulating notes TO the par val
ue Of the bonds deposited by them with
the treasurer OF the United States to Sc
cure such notes.
Eighth-That the semi-annal tax levisd
on account Of the circulating notes of
national banks be reduced so as to equal
but one-fourth Of per cent per annum.
With the exception Of the sixth amend.
ment suggested. the comptroller says all
these recon mendations have heretofore
been made to congress.
The sixth amendment is deemed advis-
able that the directors of the national
banks may pe compelled to know from an
examination required at their hands OF
the condition of the bank in whose man
agemeut they may. participate and for
which they should bear u full share of
responsibility.
'Such a law" in the opinion Of the
omptroller, would lead to bettor bank
ing methods, iess careIessness in extend
continuance Of dishonesty which might
be undertaken by any executive officer
or employee of banks and it would also
enable the com ptrOiier, in case OF the
failure of a bank, to 6x the responsibility
more clearly for negligence of duty on
tho part OF the directors"
In making suggestions relative to the
increase OF note issues, the comptroller
used the following language:
"The issuing of circulating notes to
the par value Of bonds deposited to 20
cure the same and the reducing of tho
per cent of semi annual tax levied upon
such notes has been urged by all the sec.
retaries OF the treadury who have touched
upon the subject at all and by every
com ptroIier from the time OF and inciud-
ing Comptroller Knox. The provision of
the law prohibiting the former and the
amount of ths latter, howsver, are still
unchanged upun the statute books.
LAT time when the desire is so fire.
quantity expressed that there be larger
issue OF bank notes and complaint Is
made that national banks are indifferent
to the note issuing functions vested in
them, it msy be we'll considered by con-
eress whether it would not be wise to do
that which will make it Of sufe cent inter-
est to the national banks to pay greater
attsntion to note issues. The profit OF
banking IN the United States is now
lHIk6IY III buo uopU6lt lootulC VI w oAN
thus it is of greater concern under exist
ing circumstances to the banks to Sc
cure do posits than it IS to issue notes up
on a return so small as to scarcely justi-
fly the expense and trouble entailed
thereby.
banks are not elemosynary institu.
tions, and therefore engage only IN that
which promises a margin OF profit. While,
OH the one hand, entitled to no more IA
vors than are granted to other corporations
or enterprises, carried on by associated
individuals, on the other they should not
be denied any privileges tney may Justly
claim. and for the denial OF which no pos
sible excuse can be given. 1t Is unques.
tiouably srue that national banks would
largely increase their note circulation II
the embarrassment arising IRON the need
less locking up OF u large par. OF their
capital, available for Otner purposes, ana
the lessened profit through excessive tax.
alton now simp posed. did not confront
Nthcm. They certainly would do so IL the
Negal tender issues of the government
were paid and cancelled and the channel
now clogged by them freed from bank
note circulation.
..Tbe experience of this and 9th or
countries oonclusively demonstrates that
the best and most rational note issues
are those put forth by banks. 1. likewise
demonstrates that issues made direct by
goveInme tents are always expensive ana
ger to such governments and loss to
their peoples business interests. No
clearer proof of this could be had than
that furnished by the difficulties which
we have Witnessed on the part of this
government in its efforts to maintain the
full credit of its practically linA,less
amount Of demSnd obligations.
"Tbe advantage accrning to the goverA-
iuent by the substitution OF bank note
for treasury note currency would be inn
measurably great. The need OF main
tanning gold reserve to meet the fscur-
ring demand Obligations, now never re-
tired. would, within a reaeonable time,
be obviated, and delivered from this vex-
atious and expensive difficulty. the treas
ury department could return to its lsgit-
innate function of collecting the revenues
OF the government needful to meet gov
ernmental expenses and dispursing tne
same.
4 "With the relief gained to it through
the removal of this burden, would come
a greater one to the business Interests OF
the individual citizen. whose every oper-
alton would no longer be hsriassed by
the uncertainty sprlnging from fear
that either i" the present or the future
the currency obligations, now forced by
this government though the provisions
of an infexible law into the avenues Jf
trade and commerce, may be discredlted
and dishonored. The relegatins of note
issues 0ntlIely u tuo phuho W uoiu 6iSC
a better guarantee of meeting the varying
wants of trade, which is impossible with
a legal mandate deoreeing an amount of
treasury issues OF no greater and no less
volume at one season of the year than
another, whether or no there be corrs-
spending increase or lessening OF the
demand for currency to transact the bus
iness in hand"
1t is suggested, IN connection with the
above, that as u necessary element to
secure this proper elasticity OF issue in
our bank note currency, section 8 OF the
act OF July IL, 1882, regulating the retire.
ment and issuing OF circulation to banks
within fixed period of time, should be
repealed, and also that such amendments
should be made to the laws as will neces
state the banks keeping in the Office OF
the mptroller of the currency suffi-
cient amount Of bank notes as will enable
them to secure circulation at once, in
stead OF after a perioi of delay, frequently
of suffi cIent duration as to MAKE the Iss0e
unavailable to relieve the pressure exist
ing at the time OF ordering the same.
Killed by an Electric Car
SAN FRANCISCO, Dec. dudley
Columbu Stone a teacher in the San