People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1895-12-05

va 14lSIL LIe4l Cllltllt Ut Dl an increase IT!
circulation of our national banks
Though the aggregate capital Of thes
now in existence amounts to more than
S656, 100000 outside their outstanding
circulation based on bond securities.
amounts to only $4,000, 900. They are
authorized to issue notes amounting to
ninety per cent Of the bonds deposited
/ TO secure their circulation, but IN no
event beyond the amount Of their can
ital stock. They are obliged to pay one
/ per cent tax on the circulation they
issue.
l think they ought to be allowed to
7 issue circulation equal TO the par value
Of the bonds they deposit 10 secure it.
and that the tax on their circulation
should be reduced TO One-fOurth Of one
| per cent, which would undoubtedly
meet all the expenses 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
there which would be issued for the pur-
pose Of retiring the United States notes
and treasury notes. The banks already
existing, if they desired to avail them
selves Of the provisions Of law thus
modified, could issue circulation in adj
dttion to that already outstanding.
amounting 10 S47S,OOO,OOO, which would
not 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 themselves of the proposed en-
cOuIagement-tO issue 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
location fails to make proper cOmDen-
sation for the suppression Of the state
banks, which were near to people in all
sections Of the country and readily
furnished them with banking acOmmo-
datiOns and facilities.
ANOTHER BANK IDEA.
An Inconvenience or embarrassment
arising from these restrictions on the
location Of national banks, might well
be remedied by better adapting the
present system to the creation Of banks
in smaller communities or by permit
ting banks of large capital to establish
branches in such localities as would
serve the people, so regulated and re-
stricted as to secure their safe and
conservative control and management.
But there might not be the necessity
for such addition to their currency by
new issues of bank circulation as at
first glance is indicated. If we should
be relieved from maintaining a gold re-
serve under conditions that constitute
1t the barometer Of our sOlvency, and
if our treasury should no longer be the
foolish purveyor of gold to nations
abroad or for speculation and boarding
by our citizens at home, | should eX-
pect to see gold resume its natural and
normal function in the business affairs
of the country and cease to be an object
attacking the timid faith Of our people
and exciting their sensitive imagina-
tons. l do not out take the fact that
the cancellation Of the treasury notes
issued under THE silver purchasing act
Of 1890 would leave the treasury notes
in the actual ownership of sufficient
silver including seignorage to coin
nearly SlIS,OOO,OOO in standard dollars.
This is worthy of consideration whether
this might not from time TO time be-
come converted into dollars or fraction
al coin and slowly put into circulation
as, in the judgment Of the secretary Of
the treasury the necessity Of the cOun-
try should require.
DEPTH Is DANGEROUS.
Whatever is attempted should be en-
tered upon fully apreciating the fact
than by careless easy descent We have
reached a dangerous depth, and that
our ascent will not be accomplished
without labOrOus toll and struggle. We
shall he wise if We realize that we are
financially i'll, and that our restoration
to health may require 'heroic treat
ment.
In the present stage of our difficulty
1t Is not easy to understand how the
~ SreYenue reseinty LfVh "
not the quantity Of mGGalional bank Il
revenue payments, but the'tbe cOuI
money we maintain and our ability to
continue in sound financial conditions.
We are considering the government
holding Of gold as related to the sound
ness Of our money and as affecting
our national credit and monetary
strength. If our gold reserve had new
er been impaired, if no bonds had been
issued to replenish it, if there had never
been no fear and timidity concerning
our ability to continue gold payment:
if any part Of our revenues were now
paid in gold and if We could look to
our gold receipts as a means of main
tanning reserve the amount of our rev.
enueS would be an influential factor in
the problem. But unfortunately all
the circumstances that might lend
weight to this consideration are entire
ly lacking. In our present predica-
ment no gold is received by the govern
ment in payment Of revenue charges
nor would there be if the revenues were
increased. The receipts of the treasury
when not in silver certificates, consist
of United States notes and treasury
notes, issued for silver purchases. These
forms of money are only useful to the
government in paying its current or
binary expenses and its quantity in
the government possession does not
in the least contribute toward giving
us that kind of safe financial standing
or condition which is built on gold alone
If it is said that their is another way.
If held by the government, which can
be used to obtain gold to our reserve,
the answer is easy: The people draw
gold from the treasury on demand up
on the United States Notes and Treas
ury Notes, but the proposition that the
treasury can on demand draw gold
from the people would be regarded in
these days with wonder and amuse-
ment. And even If this could be done.
there is nothing to prevent that thus
parting with their gold from regaining
it by the next day or next hour by the
presentation Of the notes they received
in exchange for 1t.
PREMIUM is DANGEROUS.
The secretary of the treasury might
use such notes taken from a surplus rev
enue to buy gold in the market. OF
course he could not do this without
paying a premium. Private holders
Of gold, unlike the government having
no parity to maintain would not be re-
strained from making the best bargain
possible when they furnished gold to
the treasury; but the moment the Sec
rotary Of the Treasury bought gold on
any terms above par he would establish
a general and universal premium upon
it, thus breaking down the parity be-
tween gold and silver which the gov
eminent is pledged 10 maintain, and
opening the way to new and serious
complications.
In the meantime the uranium, would