The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-10-17
1T is SPRUNG ON THE BANKERS
IN CONVENTION AT ATLANTA,
GEORGIA,
BY E-GOvERNOR MERRIAM OF
MINNESOTA.
IL Is Recommended to Make Safe
and Elastic System-It Does Away
With the $1OO,OOOOOO Gold
Reserve.

Bankers association began its session in
the Grand opera house this morning at
III o'clock with an unusually large at
tendance of delegates and liberal sprink
ling of visitors and onlookers.
The association was welcomed to the
city by Mayor Porter King and to the
State by Hon. G.. Gunby Jordan, presi-
dent of the State Bankers association,
in brief address.
To these words of welcome, President
John J. p. Odell, responded in behalf
of the visiting bankers and delivered his
annual address.
The report of the executive council was
then read by Mr.. Il. H. Pullen, chairman,
and the treasurer's report was read and
accepted.
Ex-Governor Merriam, of Minnesota.
read a paper entitled "The Currency for
the Twentieth Century," in which he
outlined a currency scheme.
His suggestion was:
That, say, 40 per cent of the capital
of Il National bank be invested in United
States notes and circulation be issued
against the same, the bills remaining in
the hands of the treasurer and currency
per cent of the capital stock be delivered
to the bank for issuance when desired.
Before the unsecured money is forward
ed, however, each bank should pay to
the treasurer IA sum equal to per cent
of its capital stock as Il bank circulating
safety fund" upon which money the
government should allow interest at the
rate of ; per cent per annum. The gov
ernment, in case the assets of insolvent
banks be insufficient to reimburse it for
the circulation notes of defaulting in
stitutiOns, may assess each bank in the
system pro rata to an amount sufficient
to fully indemnify it for any losses in
Cured, but i'll any year no institution
shall be assessed more than l per cent
of its average circulation for the previ-
Gus year Inasmuch as there are likely
to be at least 1000 banks organized un-
der any National law, the treasurer
| might act as redeeming agent for all
the banks and each bank should at all
times keep with the treasurer 5 per cent
of its capital stock for redemption fund,
which fund should be in gold coin. and
hold in trust for the specific purpose in
tended. AS fast as notes are redeemed
| the bank should at once remit sum that
would repair any deficiency made by
| redemption and new notes be forwarded
| Inasmuch as the banks would make a
profit out of the circulation not secured
| by notes it is right that all of the banks
| should pay tax upon the unsecured
notes to the government for the privilege
accorded them. This tax should be made
sufficiently large to pay all the expenses
| of the offices of the comptroller, includ
ing the printing of bank notes, engraving
etc. to pay the United States for the
charters granted and afford handsome
l oh ni1 In Il Of vi
general expenses and to make the cur
| rCncy elastic. Every bank desiring tC
become National should pay tax of :
per cent per annum upon the amount
| of it's average circulation. 1t can a
once be seen that whenever the demands
| for money are sufficiently active t.
| enable banks to dispose of their funds
at prices that will net them over . pei
| cent. there will be an incentive to put
out the currency, but when it is wortl
| less than that amount, as it has beer
in New York and Boston for some months
| the unsigned bills will remain in the
vaults, The government would receive
several millions of dollars per annum
into its Golfers to aid in paying its bills
as return for the privilege granted
the banks. In addition the interest on
| $100,000,000 of gold now maintained in
idleness would be saved and the gold put
into active service instead of being out
of the channels of trade, there being nc
further use for the gold reserve" us the
bulk of the greenbacks and Sherman
notes would be absorbed as a basis for
currency or as a reserve against deposits
in bank
That all parts of the country might
have the advantage of the National sys-
ten. banks should be permitted to or
ganize with capital of $25000 or even
less thus encouraging State banks to
abandon their present charters.
Banks desiring to organize under this
plan should be examined by an agent
of the comptroller and permitted to be-
gin business upon certificate of an ex-
aminer duly certifying that the capital
stock has been paid in actual cash