The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-10-19

least 1000 banks organized under any
national law. Governor Merriam thinks
that the treasurer might act as re-
deeming agent for all Of the banks. in
that each bank should at all times keep
with the treasurer per cent. of its
capital stock as redemption fund,
which fund should be in gold coin, and
held in trust for the specific purpose
intended, and not mingled with other
moneys. and not counted as part OF the
funds of the treasury. As fast as notes
are redeemed, the bank should at once
remit a sum that would repair any de-
ficiency made by redemption. and new
notes be forwarded by the comptroller
to the bank where paper has been cam
celled. Inasmuch as the banks would
make q profit out of the circulation not
secured by United States notes or Sher-
man notes dor he would include both.
Mr.. Merriam's belief is that all of the
banks should pay tax upon the unse-
cured notes to the government. for the
privilege accorded them. This tax
should be made sufficiently large to ac-
complish three things. First, to pay all
the expenses of the office of the comp
troller of the currency. including the
printing of bank notes, engraving. etc,
Secondly. to pay the United States for
the charters granted. a handsome rev.
enue, which should aid in defraying
general expense: and thirdly. to make
the currency elastic. by means of a
tax sufficiently large to compass the
above, the currency would flow into
the channels OF trade wherever there
was a demand for 1t. Mr.. Merriam
would have every bank desiring to be-
come national. pay a tax of per cent
per annum upon the amount of It's av-
erage circulation.
In his opinion 1t can ut once be seen
that whenever and wherever the de-
mands for money are sufficiently active
10 enable banks to lend their funds at
prices that will net them over . 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
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
one hundred millions of gold now main
tained in iileness, would be saved and
the gold put into active use instead or
being out of the channels of trade, there
being no further use for gold re-
serve" as the bulk of the greenbacks
and Sherman notes would be absorbed
as a basis for currency or as a reserve
against deposits In banks. Mr.. Mer-
riam would extend the privileges of this
plan TO banks with only $4,000 capital
or even less, in order that all parts of
the country might have the advan-
tages Of the national system: but he
would provide stringent safeguards
against the admission Of mushroom
banks to the privileges herein outlined.
The feature of this plan of interest to
bankers is that 1t would afford small
profit to banks on their circulation,
while its advantage to the government
would lie in the wiping out of the present
costly and vexatious endless chain"
OF treasury notes, the doing away of the
gold reserve and the provision for that
emergency which will come with the
extinguishment of the national debt,
not TO mention Its incidental revenue.
To the general public the plan offers ad-
ditional security and would, it would
seem, result in the stimulation OF
banking enterprises in localities where
the absence Of banking facilities now
places a serious burden on the various
processes of general commerce. 1t oc-
ours to US. in view of those advantages.
that the Merriam plan embodies dis
tinct advance upon preceding sugges-
tions and would afford the basis of de-
sirable legislation.
l. = 1Ax,