Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-04-12

day of trial have borne the test of su-
preme patriotism. and which have paid in
to the common treasury, in taxes and
charges, the stupendous sum of one hun
dred and forty five millions of dollars, of
which the tax on circulation alone has
amounted to more than seventy six mil
lions OF dollars. Change? Yes, gen
tlemen, let us have change. Let us
strike off the shackles that cucumber it.
Let us wipe out the inequalities that bur-
den it; let us recognize the justice OF its
claims for relief; let us repeal the restric-
tive and burdensome enactments which
its birthday conservatism demanded, and
give it the freedom justly due it, and due
the people.
Is there man within hearing of my
voice who believes it wise, or just, for the
government to hold one hundred and
twenty dollars in value of the best Sc
curities in the world. as a guaranty for
every ninety dollars which bank may
promise to pay: Does it serve any good
purpose to lock up twenty five per cent
of every banks capital in enforced idle
ness?
And yet that is the result of the re-
quiremcnts of existing law.
make no criticism upon the law Tor
the time, and under the conditions, in
which it was framed; but l do say that
tie time has come when this restriction
should be removed and the banks per-
mitted to issue up to par of their bonds
The national banks of this country with
capital of nearly seven hundred mil
lions have outstanding but one hundred
and seventy-tw millions OF circulation
The national banks of Maine with eleven
hundred millions of capital, have only
four millions of circulation. During the
past twenty years, while the national
bank capital has increased two hundred
millions, the circulation has decreased
almost as much. The restriction to
which I have alluded is potent cause of
this decline.
Another drawback is excessive taxa
ton. Upon this limited circulation is
levied tax which. although much less
than formerly, is still a trifle more than
one per cent annually, to say nothing of
the other charges, which aggregate quite
a percentage.
This also should be changed. The tax
81 Oh be reduced.
A tax of one-fourth of one per cent.
would be more nearly just.
People talk of the non-elasticity OF our
present currency, as if elasticity was the
great desideratum in currency system.
| grant it is q desirable feature; but
that word, has been rolled under the
tongue of so many wild eyed "flnanciers'
las sweet morseD regardless of how it
shall be obtained that l have become
almost sick of its sound
Tired of the old forms of attack they
now beseech the law making power to
abolish the national banking system. be-
cause its currency is not elastic. Bet
ter, by far. to apply the pruning knife to
some of it's suckers The existing law
prevents elasticity by declaring that not
more than three millions of dollars shall |
be retired in any one month, and that no
bank which has retired part of its
circulation shall increase it again within
period of six months.
Repeal this senseless restriction also
Cast it to the dogs. 1t only serves those
cranks who cry that without it the
banks would make scarcity or plethora
of money, at will, and make, or break. the
commercial world at their whim. Such
people We as little conception of the in
Independence of the banking interests and
the rest of the commercial world, as the
Hindu Brahmin has of the Christian God.
Away with the system, because not
elastic, they say, and then they hold
fast to whatever will prohibit elasticity.
Do not understand me as referring,
above, to those who are honestly endeavor-
ing to secure this coveted elasticity, but
rather to those who advance that miser
able argument against the abolition Of
the clause of which have spoken.
l am, perhaps, approaching dangerous
ground, but / desire to call your atten-
ton to some of the propositions for
changing our currency system, now and
during the past few months before the
people, with which our legislators have
been wrestling, and which will. doubtless,
be again debated at the next session of
Congress.
am aware that some Of the ideas have
been endorsed by financiers the latchet
of whose shoes am, perhaps, unworthy
to unloose; yet you have not invited me
here as you might bring in n phonograph,
to repeat the words that have been in
denied in my plastic mould; but rather
to express my own views, and these you
will take for what they may be worth
The detail of the plans, as to place of re-
demption, taxes, etc, ] shall not take
up; the basis for circulation is the essen
tial thing.
The proposition whose endorsers would
naturally give it the priority of claim
upon your consideration is the -" Baltimore
plan," presented at the meeting of the
American Bankers Association in Balti-
more last fall
This proposes that the law requiring a
deposit of bonds as basis of circulation
shall be repealed, that banks be permitted
to issue circulation to the extent of fifty
per cent of their paid up capital, that the
bills be first lien upon the entire assets
of the bank, including stockholders liza
bility, that a tax be levied upon the cir
culation as guarantee fund.- until the
amount of such tax aggregates five per
cent of circulation, and that in case of the
failure OF bank and its final inability
to take care of its bills, and the exhaus-
ton of the guarantee fund, all the other
banks shat! be taxed to make up the de-
ficiency. 1t further provides that it be al
iowabie to issue additional circulation to
the extent of twenty-five per cent of capt.
tai whenever emergency may arise, this