Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1897-12-13
"sixth-To secure the government

''Sixth-To secure the government
against loss, if any, attaching to its
guaranty tax Of per cent. per an
mum on unsecured circulation shall
be levied to create safety fund,
which fund shall be invested by the
secretary of the treasury and the
comptroller of the currency in govern
ment bonds. In addition to such
funds the government shall be fur
Their protected by having a first lien
upon all assets in case of failure of
the issuing bank.
'Seventh-All notes shall be re-
deemed in the city of New York at the
the subtreasury, and at such other
subtreasuries as may be designated by
the comptroller of the currency with
the approval of the secretary of the
treasury. The control of such re-
demption shall be under the direction
of the, comptroller of the currency and
made from a redemption fund of 10
per cent, to be provided and main
tanned by the banks.
.Eighth-Restrict the issue of ma
tional bank notes to the denomina-
ton of $40 and upward.
can examination of the plan herein
proposed will show that the amend
~ radical character. It is believed
that banks organized under the ma
tional bnk act, with these amend
ments, would give upon a thoroughly
safe basis a desirable credit currency
leading ultimately to further freedom
of issue as the result of time and ex-
perience.
without further extension of the
historical statement, it is recognizable
that the exigencies of the government
do not now require the absorption of
banking capital in aid of it's own
finances. In fact, with treasury con-
ditions once normally established,
the funded debt will, within a few
years, be entirely liquidated.
3'The Importance of banking in it's
relation to- industry and commerce
demands for it, in view of the con-
siderations thus enumerated, careful
and timely attention.
1.-THE question is complicated by
the fact that for a whole generation
our people have been schooled in a
system of banknOte issues secured by
pledges in the hands of a public trus-
tee. It is not a good system, but it
not to be yielded until some other
form adequate guarantees for the sol
vency of banknote issues are pro-
vided.
1.-The problem is twofold one:
How to withdraw the specific form of
security now provided, since it will
ultimately disappear; how to provide
a substitution which will be recog-
nized by the people as adequate Sc
curity. and which will at the same
time allow to- banks within we'll
guarded limits the most useful free
dom in their note issues. The prob
lem is too large, it's results too far
reaching, to be solved offhand or by
expert dictum It's solution must be
gradually reached by the pain of safe
experiment.. To allow national banks
to issue circulating notes equal to 70
per cent. of their capital upon a pay
ment of per cent. per annum as an
If surance or safety fund upon
amounts so issued, is, if the demon
stration drawn from the comptroller's
office can be trusted, a proposition
we'll within the limits of safety
Nevertheless. whatever risk there
is should be assumed by the govern
ment. obnoxious as it may be to the
general principles of government
action. 1t is by such action that the
situation as it exists has been evolved.
Upon the government, therefore, rests
the duty of seeing it properly solved. "