The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-03
THE NATIONS CURRENCY
RECO1M 10 COSGRFxs
Br COMPTROLLER EcKELs.
The Advantages of such Action Arc Point
ed out-sccuring Bank Cir
culation at Once.

gross. sent In his annual report to-day.
and II contained some interesting sug-
sessions as TO the currency question.
recommending, in substance. the retire
ment and cancellation OF the legal tenders
and tho substitution In the countrys
circulation OF national bank notes for
them, the inducement proposed to the ma
uonal banks for taking out additional
notes being permission TO issue notes TO
the par value OF the bonds deposited
and the reduction OF the tax on circula-
Won to one-iourth OF / per cent. per
Mr.. Eckels does not present a compre-
hensiVc banking-currency plan, as he
nid last year because ne believes II TO
ne useless, IN view OF conditions in Con
sIcss' and so ne contents himself win
Teiteratinc the suggestions outlined above.
winch ne had mace before.
IN discussing them he says:
SUGGESTIONS DISCUSSED.
The issuing of circulating notes to the
par value OF bonds deposited to secure
me same and the reducing OF the per
cent OF sem-annual tax LEVIED upon such
notes has been urged by All the Secre,
tarleS OF the Treasury VINO have touched
upon tie subject al all ana by every
Comptroller from the time OF and IN
Guiding Comptroller Knox The provision
OF the law prohibiting the former ana
the provision OF the law governing the
amount OF the latter, however, are sun
unchanged upon the statute book.
Al a time when the desire ~ 50 fire.
qucuuy expressed there be a larger is
sue % bank notes ana complaint ia MADE
that national banks are indiueSent 10 the
noie-issung function vested IN thenl, u
may We'll Do considered by Congress
whether IL would not be wise TO do that
which will make IL of sufficient interest
10 the national banks 10 pay greater at
banking I'm the United States is now
largely Ina the deposit feature Of y. and
thus n is Of greater concern, under eN-
listing circumstances TO the banks 10 So
cure deposits than II is 20 issue notes
upon a return 20 small as TO scarcely
justify the expense and trouble entailcd
thereby.
BANKS ARE RUN FOR PROFIT.
Banks are not eleemosynary insttu-
tions, and. therefore, engage only IN that
which promises d margin OF prOnt While.
on the one hand, entitled 10 no more
favors than are granted TO other corpora
lions or enterprises carried on by assoc
ciated individuals, on the other, they
should not be denied any privileges which
they may Justly claim, and FOR the DC
nal of which no possible excuse can he
given. IN H. unduestionahly true that ma
tiOnal banks would largely increase their
note circulation n the embarrassment
arising from the needless locking up OF a
large part Of their capital, available Tor
other purposes. and the lessened PROM
through excessive taxation no" imposed,
did not confront them. They certainly
would do " the legal tender ISSUES OF
the Government were paid and cancelled
and the channel now clogged BY them
freed for hank-nOte circulation.
The experience of this and other
countries cOnclusively demonstrates That
The best and most rational note issues
are those put forth by banks. II hkc-
wise demonstrates that issues made di-
rect by governments are always cApth-
sive. and unoer every circumstance a
and loss 10 their peoples business in
terests. No clearer proof of this could
be had than that furnished by me dlih
culties which We have witnessed on INC
part of the Government In its Efforts
10 maintain the fun credit OF ITS prac-
tically lmitless amount OF demand oo-
legations.
AN ADVANTAGE TO BE GAINED.
The advantage accruing TO the Gov
eminent by the substitution OF bahk,
note for a Treasury currency WouII
he immeasurablv great The neeu OF
maintaining "a gold reserve 10 meet the
recurring demand obligations. now never
retired. would. within reasonable time
be obViated and. delivered from TINS NeA-
atious and expensive difficulty. the Treas
ury Department could return TO Its legitl-
mate function of collecting the revenues
OF the Government ncedful 10 meet gov
ornmental expenses and dispurslhs the
with the relief gained TO it through
the removal OF this burden would come
greater one TO the business interests Oh
the individual citizen, whose every opera
ton would no longer be hdiasscd pN
the uncertainty sprngins from a rear
that either in the present or me Iu,uie
the CURRENCY obligations now forced 10y
mis- Government through the provisions
of an in1exible law into the avenues
of trade and commerce may DE dlscredlted
and disnOnOrad The relesaung OF note
issue entirely 10 the banks would give
better guarantee IF meeting the varying
wants of trade. which rs impossiblel Win
"A legal mandate decreeing an amount OF
Treasury issues of no greater ana no
less volume at one season OF the year
than another. whether or no there De
corresponding increase or lcssenng OF
the demand for currency To transact 'h'
business in hand
ii IL suggested Ina connection with the
above that as necessary element 10
tho security of proper elasticity Of issue
iu our hank-nOte currency, section OF
the act OF july H. 1SS2, regulating the
retirement and issuing Of circulation TO
should be repealed. and also that such
amendment should be made TO the law
as will necessitate the banks Keeping III
the office of the Comptroller or me Cur
rency a sufficient amount OF bank notes
as Will enable them TO secure circulation
at once instead of after period OF de-
law. frequently Of sufficient duration as
10 make the issue unavailable TO reneNe
the pressure existing at the time OF or
dering The same.
EIGHT AMENDMENTS.
Comptroller Eckels recommends eight
amendments 90 the law. as follows.
Irirsf That the COMPTROLLER with the
approyal of the Secretary Of the Treasury,
h. empowered In an proper cases 10
r.n,oye officers and directors of national
hanks for violations of law and misman-
arcment first according them hearing
on charges preferred.
second That the loans of any ban-
to lis executive officers and emploNes he
restricted and made only upon the an
,.~ov.l of tho board of directors, "a sC.a-
rafc written record Thereon being kept
Third That the assistant cashier. M
the absence Of tho cashier. he authorized
to SIGN the circulating notes Of the bank
and reports OF condition
Fourth That some class OF pubic OIL
Ulcers be empowered 10 administer the
general oaths required 10y the national
hank act
Fifth THAT bank examiners be required
"a take an oath Of office and execute
a bond before entering upon the discharge
OF their duties
sixth That upon a day in each year
10 ~ DESIGNATED by the Comptroller. the
directors OF national banks shall be re-
orircd 10 make an examination OF the
AFFAIRS OF the banks ana submit 10 the
Cornntrollcr a report thereon upon blanks
40 be furnished for such purpose.
seventh That the Comptroller be au-
thorized TO issue 10 national banking as
sociations circulating notes 10 the par
value Of the bonds deposited by them
with the Treasurer OF the United states
90 secure such notes
Eighth That the semi-annual TAX lev
Sea on account OF the circulating notes
a. national banks bee reduced SO IA 10
equal but one-fourth OF ! per cent per
annum.
III.