Birmingham state herald., 1895-12-17
MIR. CARLISLE'S REPORT.
Continued From First Page,


 
 nent protection against their recurrence in the future.
 This can be most successfully and economically accomplished by authoriz- ing the secretary of the treasury to issue | from time to time bonds payable in gold. | bearing interest not exceeding 3 per cent per annum and having a long time to | run, and to exchange the bonds for Unit | ed States notes and treasury notes upon such terms as may be most advantage ous to the government, or to sell them abroad for gold whenever in his judg- ment, it Is advisable to do so, and use the gold thus obtained in redeeming the outstanding notes. In order to further facilitate the substitution of other cur rency for the retirement of legal tender notes the national banks should be au- thorized to issue notes equal in amount to the face value of bonds deposited to se- cure them, and the tax on their circula- tion should be reduced to # of 1 per cent per annum. When the national banking system was established the bonds of the United States were selling below par in the market, and there was consequently sufficient reason for limiting the amount of the circulating notes authorized to be issued to 90 per cent of the face value of the securities deposited, but this req son has long since keaSed to exist, and the limitation should be removed
 As part of the plan for the retirement and cancellation of the legal tender notes the treasury should be relieved from re- sponsibility for the redemption of nation al bank notes, except worn, mutilated and defaced notes and the notes of failed banks, and each association should be re- quired to redeem it's circulation at it's own office and at agencies to be desig- mated by the comptroller of the currency, as was the case prior to the passage of the act of June 20, 1874 or, if this is not T. tenn of currency redemption by the treas ury is continued, the secretary should have the power after future date fixed in the law to require the banks to keep their per cent redemption fund in gold coin, and to deposit gold coin for the withdrawal of bonds whenever the cir culation is to be permanently surren- dered or reduced Whatever objections to a national banking system may have heretofore existed, or may still exist among our people, upon economic or oth- CT grounds, the fact must be recognized that it has been so long established that notwithstanding it's admitted defects 1t has served such useful purpose in fur nishing a convenient form of currency of universal value throughout the coun- try that an attempt at this time to ab- sorb it, or materially abridge the fran chises of the institutions organized un- der it, would not only be unsuccessful. but would provoke injurious agitation when the precarious condition of our financial affairs demands repose.
 The secretary suggests an amendment of the national banking law permitting
 national banks to establish branches for transacting a discount and deposit busi-
 ness and closes his report as follows:
 It is not proba ble' than any plan for the
 permanent retirement of the United
 able time for its complete explanation,
 States notes and treasury notes will be
 adopted that will not require consider
 and I. therefore, respectfully urge upon
 congress the propriety of prohibiting
 any future issues of such notes or of
 national bank notes of less denomination
 than $10. The reasons for this recom-
 mendation have been fully stated in
 former reports and need not be repeated
 here. Such a policy would make room in
 the circulation for silver coins and silver
 certificates of small denominations, thus
 increasing their use among the people in
 the transactions of their daily business
 and preventing their frequent return to
 and accumulation in the treasury. The
 large silver certificates now outstanding