The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1895-10-17
The Minnesota EX-Coveriifar
Addresses the Bankers
at Atlanta.
"CurrenCy Of the TWentieth
Century" t.:e Subject of
His Talk.
Retiring GreenbaCkS and Sher-
man Notes a Feature of
the Plan.

ATLANTA, Oct. 17.-The American
Bankers association began its sessions
in the Grand Opera House at 10 o'clock,
with an unusually large attendance of
delegates and liberal sprinkling of
visitors and onlookers. The association
was welcomed to the city in brief
speech by Mayor Porter King, and to
the state by Hon. G.. G. Jordan, presi-
dent Of the State Bankers association.
To these words Of welcome President
Odell replied in behalf of the visiting
bankers and delivered his annual adj
dress. Among the papers read during
the afternoon session was one by ex-
Governor Merriam of Minnesota on
"The Currency Of the Twentieth Cen
tury." His suggestion was:
THAT, say 40 per cent Of the capital
of national bank be investedin United
States notes, and circulation be issued
against the same, the bills remaining i'll
the hands of the treasurer, and currency
TO an amount equal TO the remaining 60
per cent of the capital stock TO be 6eliv-
cred to the bank for issuance when de-
u.
is forwarded, however, each bank should
pay TO the treasurer an amount equal to-
Five Per Cent OF It's Capital stock,
as a hank circulation safety fund
upon which money the government
should allow interest at the rate OF per
cent per annum. The government, in
case the assets OF insolvent ranks be in
sufficient to reimburse it for the circu-
lat;nC notes Of defaulting institutions,
may assess each bank in the system, PRO
rata, to an amount sufficient 10 fully in
demnify it for the loss incurred, but Ill
any one year no institution shall be as
Gessed more than l per cent OF its aver
age circulation for the previous year.
Inasmuch as there are likely to be at
least 1000 banks, organized under any
national law, the treasurer might act as
redeeming agent for all of the banks
and each bank should at al times keep
with the treasurer per cent Of its capi-
tai stock as redemption fund, which
fund should be i'll gold coin and held in
trust for the
Specmc hntetlteU'
AS fast as notes are redeemed the bank
should at once remit sum that would
repair any deficiency made by redemp-
tion and new notes be forwarded. In
asmuch as the banks would make
profit ont of the circulation not secured
by United States notes or Sherman
notes, il is right that all Of the banks
should pay tax upon the unsecured
not es TO the government for the priyi-
lege accorded them. The tax should ba
made sufficiently large to pay all the
expenses Of the Office of the comptroller,
including the printing of bank notes,
engraving, etc. Every bank desiring to
become national should pay tax Of 3
per cent per annum upon the amount
of it's average circulation. 1t can at
once be seen that whenever the demands
for money are sufficiently active to en-
able banks to lend their funds at prices
that will
Net Them Over Two Per Cent,
currency, but when it is worth less than
that amount, as it has been in New
York and Boston for some months, the
unsigned bills would remain in the
vaults. The government would receive
several millions of dollars per annum
into its Golfers to aid III paying its bills,
as return for the privilege granted the
banks. in addition, the interest on
800, 900 of gold now maintained in idle
ness 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 as the
bulk of the greenbacks and Sherman
notes would be absorbed as basis for
currency or as a reserve against deposits
in banks"