The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-02

ing loans and make less liable the long
continuance OF any dishonesty which
might be undertaken by any executive
officer or enpioye Of banks. and IL would
also enable the comptroller. in case OF the
failure OF hank. 10 fix the responsibility
more closely for negligence of duty on the
part Of directors
In making suggestions relative 10 the
increase OF note issues. the comptroller
uses the following language:
The issuing OF circ1lar notes TO the na-
value Of bonds deposited TO secure the
same, and the reducing OF the per cent. OF
semi-annual tax levied upon such notes
has been urged by all the secretaries OF
the treasury who have touched upon the
subject ar all. and ay every connptrolle-
from the time OF and including Comptroller
Knox. The provision OF the law prohibit
ing the former and the provision OF the
Law governing the aTnhunt Of the latter.
however. are stiii unchanged upon the stat
ute hook
AT a time when the desire Is so fire.
quently expressed that there be A larger
issue Of hank notes. and complaint Is made
that national banks are Indifferent to the
note issuing function vested IN them. il
may well he considered by congress
whether IL would not No wise TO do that
which viii make i Of sufficient interest TO
the national hanks 10 pay greater atten-
ton TO note issues. The profit OF banking
in the United States is now largely in
the deposit featurs OF II, and thus il is OF
greater concern under existing circ,lu1-
stances to the banks to seucre deposits
than II IS 70 issue notes upon a return so
small as TO scarcely justify the expense
and trouble entasied thereby. Banks are
not elsemosynary institutions and there
fore engage only in that which promises
q margin of profit While on the one hand
entitled 10 no more fayors than are grant
ed 10 other corporations or enterprises car
ried on by assoc: tted individuals. on the
other they should not be denied any privi-
leges which they may justly claim. and
for the denial of which no possible excuse
can be given. It, is unquesttorably true
that national banks would largely increase
their note circulation IL the embarrass-
ment arising from the needless locking ND
OF a large part of their capital. available
for other purposes. and the lessened profit
through excessive taxation now imposed
did not confront them They certainly
would DO SO if the legal tender issues Of
the government were paid and Cancelled
and the channel DOW cioggei by them freed
from bank note circulation
The experience of this and other coun-
tries conclusiyely demonstrates that the
best and most rational note issues are
those put forth by banks. IL likewise de-
mOustrates that issues made direct by gov
every circumstance a source of danger TO
such governments and loss to the.r peo-
pies business interests. No clearer proof
Of this could be had than that furnished
by the difficulties which we have witness
ed on the part OF this government in its
efforts 10 maintain the full credit Of Its
practically limitless amount of demand
obligations. now never retired. These
would, within a reasonable time, be OBJ
Waited and delivered from this vexatious
and expensive difficulty, the treasury de-
partment could return TO its legitimate
function of collecting the revenues OF the
government Heedful TO meet governmental
expenses and disbursing the same. Wita
the relief gained to il through the re-
moval OF this burden would come a great
or one to the business Interests of the in
dv.dual citizen, whose every operation
would no longer he hsrrassed by the un-
certainty springng from fear that either
in the present or the future the currency
obligations now forced by this govern
ment through the provisions of an inflex-
fb!e Law into the avenues of trade and
commerce may he eiTcredted and dishon-
ored. The relegatiE- of note issue entirely
TO the banks would give better guarantee
Of meeting the varying wants OF trade,
which is impossible with a legal mandate
decreeiug an amount Of treasury issues of
no greater and no less volume at one sea-
son Of the year than another. whether or
not there he a corresponding increase or
lessening of the demandi for currency to
transact the business in hand"
u IS suggested in connection with the
above that as a necessary element 70 the
security OF proper elasticity OF issue In
our bank note currency. section of the act
Of July u. 1882 regulating the retirement
and issuing of circulation 10 banks within
a fixed period Of time should be repealed.
and also that such amendment should he
made 10 the law as will necessitate the
banks keeping IN the office of the comp
troller of the currency a sufficient amount
OF bank notes as will enable them TO Sc
cure circulation at once. instead of after
a period of delay. frequently of sufficient
duration 10 make the issue unavailable 10
relieve the pressure existing at the time
OF ordering the same.