The evening times., 1895-12-16

l against these deipands. nj that Is to retir,
only ] n,cans through thr ugh which fise withdrawn
san Sane d gaas Ssy b. as%s sysss( ass Sfs,a S
Ste nns tsas Gr ss w, nIaSs,sII hs & s "a
eeqaaSraf ssass Si Sas t1s,ss @ ~ fs qsta n
renee in the future. s.-.--.,.z..>..-
BONDS PAY.AIEE fS.60LB.
This can be most successfully and eco
aomically accomplished by authorizing the
| Secretary OF the Treasury tttsfsSde ff6nl
time TO time bonds pa va bic In gold. pcarin
! interest at "a rate not xstSsflBg 3ttfcenttm
per ann'lni AMI having 4 fohg time to run.
and TO exchange the boisssfss ensSed Sta tes
| notes and Treasury notes upon such terms
| as may be most adv:s1eBgeons-to the gov
! ernnient or to sell them abroad for gold
whenever. in his Judgment. ~ is advfsHbls 10
| do so. and use the gold thus obtained In
| redeeniing the outstanding Rotes. Esaer the
operation OF such plan. if tudiciously exc
cuted. there could he no improper contrac-
ton or the circulation. because II IL should
! at any time be found that other forms of
currency were not being supplied To the
| extent required. exchanges or bonds Tor
notes would be suspended. and gold would
| be procured by selling the securities ahroad.
..1n order To further facilitate tue sub
/ stitutioE OF other currency for the retire
, Ineut Of legal tender notes. The national
| ba nks should be authorized To issue notes
| equal In amount To the face yliue Of bonds
deposited 10 secure ihern, aud the tax on
their circulation Should be reduced TO one
| fourth OF one per ceDtnm per annuIp. When
tae national banking system was estab-
lished the bonds OF the United States We're
selling below par in the market, and there
was consequently u suificient reason Tor
limiting the amount of the circulating notes
authorized 10 be issued to 30 per ccntum
of the face value of the securities dcpoS-
tied, but this reason has long since ceased
TO exist, aud the limitation should tie re-
moved.
"The only object TO be accomplished by
requiring a deposit OF bonds is The certain
security OF the notes issued by the banks.
aud under existing conditions that Is Just
as completely assured wheu the amount Of
the issue equals the face value oil the oonus
as when il Is limited TO o percentage,
Until 1883 there was tax upon the
capital and deposits OF national banks. as
wen as tax on their circulation. and from
all these sources the gOvegnmept mas re
ccived the sum OF 81 46.SO2.962. From
the tax on circulation alone the. receipts
have amounted to $1S.1O7 .0DG. while the
total estimated expenses OF suDervision.
Including salaries OF Officials. have been
$15.636.9I6. The average annual cost
OF supervision has been $413.Sis. while
tax of One-fourth OF one per cent On the
average annual circula ton would nave
Yielded $6S0.2S4. The gain to the govern
mcnt on account of ma tional bank notes lost
or DESTROYED. and which are. consequently.
never presented for rdemptiou.s Is esti-'
mated To be twO-lifths OF one per cent uDon
the total amount issued. and has. accounting
to this estimate. amounted 10 The sum OF
$2.sO571s. ass, =. - -
From this statement 1t appears that we
can well afford 10 relieve the paoB@e OF
this tax. which. although advanced IN the
first instance by the banks. mas. IKE all
other charges upon tile means OF proouc-
ton or upon consumption. be paid III Inc
end by TN. masses who use the axed article.
In this case the taX-is returned 10 the
banks In the form OF higher rate OF
interest on loans than would olherwlse Use
be exacted and is then shifted from one
to another through the. successive ST gfs
Of trade and produ ction until " falls
at last upon the consumers OF products b,
PLAN FOR RETIREMENT. :.
LAS a part Of the plan for the retirement
and cancellatida of legal-iender notes the
Treasury should be relieved from resDonSi
biiity for the redemption of Dat:apal-bark
notes. except worn. mutilated. and defaced
notes and The notes of failed banks. and
each association should be required 10
redeem its circulation at its own office
and at agencies 10 be designated by the
Comptroller of the Currency. as was tLs c ase
prior to The passage OF the act Of June 20.
1874: or. If this is not considered expedent.
and the present system OF current redemp-
ton by the Treasury is cCntipued. Il e Sec
retary should have the over. after a future
date; 10 be- fixed in tie law. to ret uire the
banks To Keep their . Ier cent redemption
fund in gold coin and 10 deposit gold coin
for the withdrawal Of bonds whenever Cir
culation is to be permanently surrendered
or reduced. ff % s''- =
Without the adoption of one or the
other of these provisions. the holders Of
bank notes, after the retirement OF United
States notes and Treasury notes. might de-
maDd the redemption OF such notes in gold.
even though the banks had not deposited
that coin in the ) per cent redemption fund.
and. although The government would he
undier NO legal obligation 10 I6deeDl with
a different kind OF currency rror1 That dc.
DosIted. there might be circumstances
under which its refusal to do so Would
create financial disturbance by impa iring
,.npfit.ap..s Tho valrys Of The
Whatever objections To a national hank
ing system may have heretofore existed.
or may still exist among our people upon
economic or other grounds, the fact must be
recognized that it has been so long .estab-
lished, and, not withStanding its admitted
defects, has served such a useful purpose in
furnishing convenient form. OF cuFreDcy Ga.
uniform value throughout the country that
an attempt at this time tn a holsh it or ma
terially abritige the franchises Of the insti-
tuti"ns organized under it. would not -sAls
he unsuccessful. hut would provoke in
jurious agitation when the Dreca rious- eoti--
dition of our fiscal affairs demands repOSe
and such restoration Of confluence 4 will.
enable the people to avail themselves Of all
the facilities that can be afforded for tue
transaction OF their business.
The national blnking associations now
In operation have been established under
charters granted by the government. and
SO long as they are obedient 10 the laws and
useful TO the community, it would be IN
act OF bad faith TO deprive them of the privi-
ment to any interest, the scope OF their oper-
ations can be SO extended as TO bring
them closer to the people In parts of the
country remote from the large towns and
affording accommodations to our farmers
and others eni,a ged IN business
viii be greatly increased. and we should
not hesitate 10 make such amendments TO
the laws as would most certainly accom-
plsh this purpose.
AGAINST THE PRESENT SYSTEM.
"One of the most serious objections here
tofore urged against the system as it now
exists has been that. while it is well ada pied
TO large commercial communities. where
capital is easily concentrated. il has not
the necessary banking facilities
TO the small centers of local trade where
at certain seasons of the wear
such facilities are greatly needed to assist
in cultlvatlng. gathering. and removing
our surplus agricultural prodcts.
All our trade in these products, which
constitute such large and important part
of our domestic and foreign commerce
begins in the localities where they are
grown. and it Is there that the means for
their first movement must be provided.
system which will promote such dis
tribution of the loanable capital of the
as will make il easily accessible
upon reasonable terms, to the producers
highly beneficial to both. and am salts
fled that. under present conditions the only
successful attempt that can be made to se-
cure these benefits is so to amend the law
as to permit national banking associations
to establish branches for the transaction
of all kinds OF business now authorized.
except the issue of circulating notes.
by receiving local deposits and discount
ing local bills and notes, these branches
wouid not only make the capital and re-
sources of the parent institution available
when needed in the localities where the
branches are established. but they would
collect and utilize in the business transac-
tons of the people all the surplus accuniu-
latiOns of their respective communities.
These accunuationS. although small In de-
tail, are quite large in the aggregate in
every Industrious and thrifty cnuIInunitY