New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-08
doubtful and the public credit is the weaker there-

ava WISE PRECEDENTs CITED.
Nor "a the course thus recommended without
visa precedent The earlier issues Of our Govern
ment bonds were payable in dollars" With green
backs a legal tender with goli and silver on SUD-
stantial commercial parity but both AZ large pro-
MUM over paper money. a similar question arose.
What did dollars" meant And in 1859. Ito remove
all doubt upon the subject" an act was passeo
solemny pledgng the faith Of the United states 70
tho payment In coin its equivalent OF all its IN
terest bearing obligations except when other"ioe
EXPRESSLY provided In the law The commercial as
parity between our '1egal-tender dollars ana COIN
dollars" was not then essentially greater thah mo
nrssent commercial disparity between silver ana
gold This act OF 1869 was tudicious To refund our
Outstanding bonds now payable In coin into BONDS
navabis In gold would strengthen and connrm INC
nublio credit and put Us IN a position to com"a.o
IN. markets Of the world for our securities on 'h'
most advantageous terms. ,a.
It may be urged that tho adoption OF speoin'
form Of payment for tho public debt woud % IN
,,caI 70 the spirit Of qualifying clause IN the re-
pealinr act Of 1Ss3 which reads: Ana II 10 nereoy
declared to be the policy OF the United o'a'es "
continue the use Of both gold ana SILVER no ''a".
ard money and to coin both gold and silver into
money Of equal intrinsic and exchangeaDie 'Aiue'
II this objection be raised. It loses all force ~nen
~. cor.,6.r m. only two methods by which the
rod and silver coins now in concurrent use Win
us can be 10 continued az to maintain the party
IN value Of tho coins of the two metals. ana 'ho
equal power Of every dollar at all times IN tho mar
ket and in the payment OF debts. .
One Of these methods Is familiar to u.s. since II
has been in daily use In financial system since
1879. The other method would consist IN 30 advanc
ing the coinage value OF silver by international
agreement or otherwise as to establish such com.
eS ssnS Se safely i've
is nothing in the proposition now under consider
Ss S e s'S ss
ever be admitted TO be mesh9S w ~nnern,n ~
sso odpp %ha w Of risk may be
The experiments and Il maps'y 5us H. that
and possible non-assenting creditor.
To accomplish the object: herein suggested eo With n,
paper money must be allowed to MI the r VACUUM W
tonal bank note now familiar to our people is the
reaaes, and most practical agent sonSSns pW
be found responsive TO the call.
INCREASE OF NATIONAL BANKNOTEs.
An enlarged issue OF banknotes thus contem-
plated would require a number OF amendments to
tho present National Bank act These amendments
should be made only upon such conservative lines
will. while granting the necessary aid TO the
business world In facilitating exchanges In nowse
weaken the system or lessen the stability Of the
notes to be issued. The complaint uttered against
the National Bank act as It now stands is not d.
rected toward the method of bank organization or
the absolute safety guaranteed to tho noteholder
1t is directed toward those restrictions II bodies
which result In its failure to accomplish the full
benefit 1t ought to carry. The requirement Of the
law now makes II impossible to organize a bank
with capital Of less than $4,000 no matter how
small the p!aoc In which It 10 TO be located or how
restricted the volume Of business there 10 DO trans
acted. Because OF that. with the added expense Of
taxation both National and local. many commun-
ties are deprived Of the aid Of banks Of issue and
burdened with onsrous rates Of exchange and In
terest charges.
In order TO obvate to as great an extent as pos
slble these defects and mako the act more harmoni-
Gus with proper business conditions, l recommend
that 1t be amended In the following particulars:
First-Permit National banks TO be organised with
minimum capital Of $500 in any place having a.
population OF two thousand inhabitants or less
Second-Reduce the rate OF taxation on circu-
lating notes secured BY deposit OF bonds TO ons-
half Of per cent per annum.
Third-Permit banks now organized or hereafter
to be organized to issue circulating notes to tho
par value Of the refunding bonds hereinbefore suR-
gestsd. when deposited by them with the Treasurer
Of the United States; and. further allow such
banks. a. shall avail themselves Of the opportunity
to deposit a. security with the Treasury OF the
United States greenbacks Treasury notes or silver
certificates to total amount Of 800 900 00 axainst
which there shall at once be issued TO them by tina
controller OF the Currency National bank notes 10
an equal amount II being further provided that
from time to time. at his convenience tho secre-
tary OF the Treasury shall substitute for the Rreen
backs Treasury notes and silver certificates so d.
posted to secure circulation bonds of the sama
class and character as the refundnR bonds frat
named TO the amount OF 500 00OO0 such bonds N
be chareeable to said banks and by them accnuntsT
Tor at such price mot less than par) as the ma
value During the period Of time nerveni nsrb he.
tween the deposit OF srsenbacks Treasury notes
Sy the anf ,s the
ns spsccs thsr asiOy :h .hI S srsu-
bonds sSSn .ss Of
by the Secretary Of the Treasuv once be
FourthAf Ses saiS banks Hs'0h have as,o..,
bonds greenbacks Treasury notes or silver ce9tia
they shall permitted to bank no ne,. n
o 20 ne sne o. per cent thus provided
cent may be unsecured BY any direct pledge p Of
security put issued against tbs assets OF the BANK
Government to all circulating notes Of The a ,nc
wnetner Issued against deposited security or against
sixth--To secure the Government, axa,n., ,o.. 4,
tax
70 create he SAFETY fund which fund shall be in
In addition to such funds the Government shs rs
q ss nsyof 81 T.! :.us sa ali
Of n nes sss shs p
other subTreasures as may be- dcsx and a SUCH
Controller Of the Currency with the approval Of the
saa.y tn. 3, 70.
,i Of the Currency and made from redemp-
tanned by the banks ~ '"'''-
Eghth-Reetrict the issue Of National bank not.,
TO the denomination Of 80 and upward
NOT RADICAL PROPOSAL
An examination Of the plan herein proposed VII,
show that the amendments suggested are not of a
| distinctly radical character It Is believed tina,
banks organized under the National Bank Act
with these amendments. would within the luita.
lions named. give upon thoroughly safe basis q
desirable credit currency. and lead a. the result,
OF time and experience. ultimately to freedom OF
ISSUE careful investigation Of the commercial
conditions Of the country at different periods Of ths
year shows how essential to those sections depend
ing upon the prompt moving Of the staple crops o.
cotton, wheat and corn IL q bank-note issue which
enables the local bank to supply its customers with
the means necessary for such purpose within thu
shortest period Of time and at the lowest cost