The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-10-16
HOW TO Do BANKING
EX-GOVERNOR MERRIAM OF MINNIE.
sofa BASAPLAN.
He Outlines and Advocates 1t Before the
ta-What the Basis of Circulation would
be-Circulation Safety Fund-Assess-
ment to Cover Defaults-Gold Redemp-
tion Fund-Two Per Cent Annual Tax
source of Revenue to the Government
"GoId Reserve" Knocked Out.

| Atlanta, Ga, Oct 1.-THE American
Bankers association began its ses..-..,,
here this morning with an unusually
large attendance. President John j. P.
Odell made a spirited annual address.
Reports of the executive council and
treasurer followed.
Ex-Governor Merriam OF Minnesota
! read paper entitled THE Currency for
the Twentieth Century" in which he
outlined a currency scheme. His sug-
gestion was shat, say forty per cent of
the capital of a national bank be invest
ed in United States notes, and circula-
ton be issued against the same, the
bills remaining in the hands of the
treasurer, and currency TO an amount
equal to the remaining so per cent of the
capital stock TO be delivered TO the
bank for issuance when desired. Be
fore the unsecured currency is forward
ed, however, each bank should pay
to the treasurer sum equal TO five
per cent of its capital stock, as a bank
circulation safety fund upon which
money the government should allow in
terest at the rate of per cent per an
mum. The government, in case the as
sets of insolvent banks be insufficient
to reimburse it for the circulation notes
of efaulting institutions. may assess
each bank in the system, pro rata, to an
amount sufficient to fully indemnify it
for any losses incurred, but in any
one year, no institution for the previous
year.
GOLD REDEMPTION FUND.
"Inasmuch as there are likely to be at
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under any national law, the treasurer
might act as redeeming agent for all
of the banks and each bank should at
all times keep with the treasurer five
per cent of its capital stock as a re-
demption fund, which fund should be
in gold coin and held in trust for the
specific purpose intended. AS fast as
notes are redeemed, the bank should at
once remit a sum that would repair any
deficiency made by redemption, and
new notes be forwarded. 1nasmuch as
the banks would make a profit out OF
the circulation not secured by United
States notes or Sherman notes, it is
right that all of the banks should pay
a tax upon the unsecured notes to the
government, for the privilege accorded
them This tax should be made suffic-
iently large to pay all the expenses of
the office of comptroller, including the
printing of bank notes. engraving, etc,
to pay the United States for the char
tiers granted, and some revenue, which
should aid in defraying general expen-
ses; and to make the currency elastic.
Two PER CENT TAX"
every bank desiring to become ma
tional Should pay tax Of per cent per
annum upon the amount of it's average
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whenever and wherever the demands
for money are sufficiently active TO
enable banks to lend their funds at
prices that will net them over 2 per cent,
there will be an incentive to put out the
currency, but when it is worth less
than that amount, as 1t has been in
New York and Boston for some months,
the unsigned bills would remain in
the vaults. The government would re-
ceive several millions of dollars per an
mum into it's Golfers to aid in paying
it's bills, as return for the privilege
granted the banks. In addition, the in
terest on one hundred millions of gold
now maintained in idleness would be
saved and the gold put into active use
instead of being out of the channels OF
trade, there being no further use for
gold reserve and the bulk of the
'greenbacks' and Sherman notes would
be absorbed as basis for currency or
as a reserve against deposits in banks
That all parts Of the country might
have the advantage of the national
system, the banks should be permitted
to organize with a capital Of $25, 900 or
even less, thus encouraging state banks
to abandon their present charters.
Banks desiring 10 organize under this
plan should be examined by an agent
of the comptroller and permitted to
begin business only upon a certificate
of the examiner. duly certifying that
the capital stock has been paid in, in ac-
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