The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-02

from the time of and including Controller
Knox. The provision OF the law prohibiting
the former al and the PROVISION Of the law
book.
"At time when the desire is so frequent-
" expressed that there be a larger issue
or bank notes and complaint Is made that
national banks are Indifferent TO the note
ISSUING s s fnnc s9 Vested In them It mas
1t would not be wise to do that which viii.
make IL of sufficient interest TO the nation
al banks to pay. greater attention to note
issues. The profit Of banking in the United
States is now largely in the deposit feature
of 1t. and thus IT. Is of greater concern
under existing circumstances to the banks
TO secure deposits than il is TO issue notes
upon return so small as 10 scarcely justify
the expense and trouble entailed thereby.
Banks are not eleemosynary institutions.
promises margin of profit. While on the
one hand entitled to no more favors thar
are granted to other corporations or enter
prises carried on by associated individuals,
on the other they should not be denied
any privileges which they may justly claim.
and for the denial Of which no possible ex>
cuse can be given. 1t is unquestionably
true that national banks would largely in
crease their note circulation If the embar>
rassment arising from the needless lockins
up OF large part of their capital, avail
profit through excessive taxation now im>
posed did not confront them. They certain>
~
of the government were paid and Cancelled
and the channel now clogged by them freed
for bank-note circulation.
The experience for this and other coun>
tries conclusively demonstrates that the bes,
and most rational note issued are not those
put forth by banks. 1t likewise demonstrates
that issues made direct by governments are
always expensive, and under every circum>
stance source of danger to such governs
ments and loss to their peoples business
interests. No clearer proof Of this could
bad f1or hot frrrv, chod hx- ha
ties which we have witnessed on the par;
of this government in its efforts to main>
tain the full credit of its practically limit
less amount of demand obligations.
THE advantage accruing TO the govern
ment by the substitution of a bank note for
a treasury-note currency would De immeas-
gold reserve to meet the recurring demand
obligations, now never retired, would, with
i'm a reasonable time. be obviated, and, de-
livered from this vexatious and expensive
difficulty, the Treasury Department could
return to its legitimate function of collect
ing the revenues of the government needfui
to meet governmental expenses and dis
with the relief gained to it through the
removal of this burden would come great
er one to the business interests OF the indi,
vidual citizen, whose every operation would
no longer be harassed by the uncertainty
springing from a fear that either in the
present or the future the currency oDiiga-
lions now forced by his government
through the provisions of an iniexibe law
into the avenues of trade and commerce
may be discredted and dishonored The
relocating of note issue entirely to the banks
would give better guarantee of meeting
the varying wants of trade. which Is Inn
possible with a legal mandate decreeing an
amount of treasury issues OF no greater
and no less volume at one season OF the
year than another, whether or no there De
a corresponding increase or lessening or the
demand =, for ,s currency {. to transact the ousl-
1t IS suggested in connection with the
above that as necessary element 10 the
security of proper elasticity OF issue IN our
hank-note currency, Section 3. of the act OF
July IL, 1852, regulating the retirement and
issuing of circulation to banks within a nxed
period of time. should be repealed and also
that such Amendment should be made 10
the law as will necessitate the banks Keep
ing in the Office OF the Controller or the
Currency a sufficient amount of bank notes
as will enable them 10 secure circuiation
at once. instead of after period OF delay,
frequently of sufficient dura ton as TO make
the issue unavailable to relieve the pressure
existing at the time of ordering the same