Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1895-10-18

ic, but are improving. olnlster ul>Col-
tent with all her imps is fleeing before
the benign presence of prosperity, and
in after years the heresies of today will
only be remembered as troubled
dream The American people are. hon.
est and patriotic. Upon this rock we
build Our faith, and all the ages and
agencies of truth are ours for the su-
perst1ucture.
Merriam's Currency Plan.
The currency plan outlined by Gov
rrnor Merriam has attracted consider
able attention among the bankers. IL
brief, his suggestions were:
''That, say 40 per cent Of the capital
of a national bank be invested in United
against the same, the bills remaining in
the hands Of the treasurer, and currency
to an amount equal to the remaining GO
per cent Of the capital stock to be deliv-
cred to the bank for issuance when de-
sired. Before the unsecured currency
is forwarded however, each bank should
pay to the treasurer an amount equal to
Five Per Cent of Its Capital Stock,
as bank circulation safety fund,
upon which money the government
should allow interest at the rate OF 8 per
cent per annum. The government, in
base the assets Of insolvent banks be in
SUFFICIENT to reimburse it for the c1rcu-
lating notes Of defaulting institutions,
may assess each bank in the system, pro
rata, to an amount sufficient to fully in
demnify it for the loss incurred, but in
any one year no institution shall be as
Eessed more than l per cent Of its aver
age circulation for the previous year.
lnasmuch as there are likely to be at
least 1000 banks organized under any
national law. the treasurer might act rs
redeeming agent for all Of the banks
and each bank should at all times keep
with the treasurer 5 Ter cent Of its capi.
tai stock as a redemption fund, which
fund should be in gold coin and held in
trust for the
S\Specifc Purpose Intended.
AS fast as notes are redeemed the bank
should at once remit sum that would
4Cp01A any oJ 1CSAC1llp
tion and new notes be forwarded. In.
asmuch as the banks would make q
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 priv.
lege accorded them. The tax should be
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
per cent per annum upon the amount
Of it's average circulation. 1t can al
once be seen that whenever the demands
for money are sufficiently active to Ell
able banks to lend their funds at prices
| that will
Net Them Over Two Per Cent,
there will be an incentive to put out the
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 annun
into its Golfers to aid in paying its bills
as return for the privilege granted the
banks. IN addition, the interest Oh
100000 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 nc
further use for gold reserve as the
bulk Of the greenbacks and Sherman
notes would be absorbed as basis fol
currency or as reserve against deposits
in banks''