The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-01-21

might involve the selling of the bonds be-
low par; allow the banks to issue cur
rency for the face value of bonds depos-
tied to the extent of paid-up capital
stock; abolish the l per cent. tax on cir
culation and charge only for actual eX-
penses; allow any bank to take out an
emergency circulation of 20 per cent ad-
ditional on the deposit of per cent bonds
this to be retired within limited time un-
der penalty; legalize the issue of clearing
house certificates in cities having a pop
ulation of 100000 or more, and allow these
to count as part of the legal reserve of n
bank to the extent of, say, % per cent;
retire and cancel, first the legal-tender
notes, and then the Sherman treasury
notes, by the issue of per cent. bonds i'll
blocks of about $40 1000, 900 each against ad-
ditional circulation taken out. and as
often as 600 are thus retired the
secretary Of the treasury to issue $40, 900, 900
additional with gold taken from the treas
ury reserve; this would divorce the gov
ernment from the banking business, and
the balance of the unconed bullion in its
hands should be held to partially cover the
depreciation of the coin in the silver dol
lars; the banks to be required to redeem
either in legal tender or gold coin or gold
certificates, till all the legal tenders are re-
tired, and then in gold coin or certificates
only: allow banks to hold % per cent. of
their required reserves in national bank
notes. authorize the secretary of the
treasurlko sell the new per cent. bonds
whenever necessary to meet panicky con-
ditionS or maintain the credit of the gov
ernment; require one-third of the customs
duties to be paid in gold or its equivalent;
sub-treasuries to issue certificates on de-
posits of gold coin in any amounts ad-
just the revenues of the government so
.l,,s,
leave bonded debt of about 81 900, 0O0 600;
congress to pass courteous resolutions
asking the states to pass laws governing
the banking business on lines approx
mating those of the national banking SyS-
TEN for commercial banks, etc.
The last solution is by William Hack
bank. II authorizes the issue of 81, ,000,-
100000 worth of per cent. thirty-year
bonds, to be used only for deposit as
security for the circulating notes of
national banks, such circulation not to
exceed 70 per cent. nor to fall below so
per cent. of each banks full-paid and
unimpaired capital. No national bank
shall issue smaller than SO or $50 notes,
the minor denomina tions to be supplied
by the government in silver certificates
and gold and silver coin to such an
amount as the necessities of business
may require. These bank notes shall
be legal tender for all debts except du-
ties on imports: and shall be redeemed
in four federal bank currency redemp-
ton agencies, one each at New York.
IA ,,s,;a, ,,I IN.
leans. in the nearest one Of which each
bank shall deposit in gold per cent
on its total circulation. Provision is
made for the withdrawal of circulation
between the so and IS per cent. limits,
and for the organization of district
clearing house associations, with power
to issue, in emergencies, interest-bear-
ing certificates to be legal tender among
national banks and to rank as part of
such banks reserve on liabilities. Other
provisions of Mr.. Hacketts plan re-
quire national banks to deposit with
the treasurer of the United States per
cent. bonds equal to 10 per cent. of the
banks average liabilities; compel the
accumulation of 20 per cent. surplus
fund before any dividend may be de-
clared; grant to solvent banks, upon
permission from the comptroller of the
currency conditioned upon thorough in
vestigation, the privilege, in times Of
emergency, to demand reasonable time
in making payment of all claims; and
stipulate that if the 10 per cent. tax
on state bank circulation shall be re-
pealed, state banks must be permitted
to issue only such notes as meet the
conditions and requirements governing
the circulation of national banks.
The last suggestion Is manifestly the
best. We doubt if a 2 per cent. bond
would serve the purpose; but should
congress consider otherwise, and decide
to give the main. tenor of the Hackett
plan trial, we do not question the
plans Ultimate success. The fight over
silver would, in that event, continue to
rage, but it would not be SO likely to
leopard the public welfare.