The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-08

compelled, in self-defense, to do this
so long as the large trust companies
pay high rates Of interest on current
accounts. He sees no objection, how
ever, to counting the deposits of coun-
try banks in reserve cities in banks
approved by the national comptroller,
as a part of the required reserve. He
favors permitting large national banks,
with a capital Of one million dollars
and upwards, to establish branches on
a basis Of one branch to each $3.50, 600
or $500, 900 of capital; the redemption OF
such notes to be made by the parent
bank. He regards the existing 10 per
cent tax on state bank notes as a war
measure, and as no longer needed, and
believes, in conclusion, that 1t would be
better for the country at large II the
general government was out OF the
banking business. At the same time,
he asserts, it will not be saken out of
this bu3iness until some approved
method is found which will take the
place of the present condition.
JOHN C. BULLITTS PLAN.
Another reply is from John G. Bullitt,
which, coming highly indorsed as it
does by financial authorities, has COM
manded great attention and study. By
Bullitt's plan, to touch every side of
the problem before the commission, its
provisions in outline are as follows:
That all of the outstanding currency
obligations, amounting to about $780,
100000, shall be taken up and can
celed, being replaced, according to
business exigencies Cunder the direc-
ton of the currency board, composed
of the president, secretary of the treas
ury and comptroller of the currency,
by 8 per cent bonds.
There is to be but one kind Of cur
rency, namely, national bank notes re-
deemable in gold at the bank of issue,
and a selected bank of reserve, and
these notes are to be issued gradually
to replace its obligations as the latter
are retired
These notes are to be secured by a
deposit of Is per cent of gold in the
treasury, by Is per cent gold in the
bank vaults, and by a first lien upon
all of the banks assets, as we'll as by
a special provision giving the govern
ment the right to assess all national
banks when needed to make good notes
of a defaulting bank, the notes of
which would then be redeemed by the
government. A tax is to be laid upon
the banks to cover the expenses of the
currency board and the balance held
to secure redemption Of notes in gold,
but if this exceeds $10,000,OO0 the sur
plus may be covered into the treasury
to pay interest on United States bonds
and for general purposes. This tax
should be one-half of 1 per cent or 1
per cent per annum, as the commits
sions shall elect.
Power should be given to banks, un-
der permission from the currency
board, to increase the note issue, when
demand is caused by unusual finan-
sial emergency, such increase to be
subject to a tax Go be determined
from time to time by the currency
board upon the notes while in circu-
lation; the tax upon the notes to be
at rate which would put a pressure
upon the banks to take up the notes
when the emergency has passed.
Silver and subsidiary coins should
be redeemed in gold by the United
States government when demanded.
These amount to about $100, ,0OO0 900.
No note should be issued for less than
five dollars.
National banks should be constrained
to exchange notes now out for new is
sue by surrendering notes as they re-
ceiye them.
Customs duties and taxes of all
kinds due the government should be
payable one-third in gold and two
thirds in bank notes. This is neces-
sadly tc supply the government with
the gold required by it to pay interest
upon it's bonds, redeem silver and for
other purposes
The legal tender. .quality Of gold and
silver should fsEhainS as now provided
by law, and they should be the only
legal tender except to the extent of
two-thirds of customs duties and taxes
due the government, which should be
payable in bank notes as above stated.
Confer upon the currency board the
power to regulate the issue Of bank
notes from time to time, in lieu of the
government currency retired, and to
authorize new banks and branch
banks to be established when and
where and with such amounts Of cap