The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-11-07

throw upon the governing body whatever
measure of risk may be involved IN the
experiment IL entered upon, and II il man-
| ifestly just that there the risk should
lie, rather than upon the helpless and
possible non-assenting creditor.
MORE NATIONAL BANK NOTES.
'"To accomplish the objects herein sug-
gested without unnecessarily contracting
the circulation. some ether form of paper
money must be allowed to fill the vacuum
which might otherwise be occasioned. The
National bank note, now familiar to our
people, is the readiest and most practical
agent to accomplish that object. and under
reasonable conditions it will be found re-
sponsive to the call
IAN enlarged issue of bank notes thus
contemplated would require a number of
amendments to the present National bank
act.
These amendments should be made only
upon such conservative lines as would,
while granting the necessary AID to the
business world in facilitating exchanges, in
nowise weaken the system or lessen the
stability of the notes to be issued. The
complaint uttered against the National
bank act rs 1t now stands is not directed
to the method Of bank organization OF the
absolute safety guaranteed to the note hold
er. 1t is directed 10 those restrictions
which 1t embodies, that result in its failure
to accomplish the full benefit which other
wise would follow. The requirement of the
law now makes it impossible to organize n
bank with capital of less than S5C, 900. no
matter how small The place in which 1t Is
TO be located, or how restricted the volume
of business there to be transacted, Be-
cause of this, with the added expense OF
taxation, both National and local, many
communities are deprived of the aid OF
banks of issue and burdencd with onerous
rates OF exchange and interest charges.
In order to obviate to as great all extent
as possible these objections and maze the
act more harmonious with proper business
conditions, | recommend that it be amend
ed in the following particulars:
AMENDMENTS TO BANKING LAW.
First, permit National banks to be or
ganized with minimum capital of $3.50
in any place having population of 1000
inhabitants or less
Second, Reduce the rate of taxation on
circulating notes secured by deposit OF
bonds to one-half of per cent per annum.
Third. Permit banks now organized OF
hereafter organized to issue circulating
notes to the par value of the refunding
bonds hereinafter provided deposited by
them with tho treasurer OF the United
States. Aud further. allow such banks 20
snail avail themselves of the opportun-
ity to deposit as security with the treasury
OF the United States grecnbacks, treasury
notes, or silver certificates to the amount
CT 500, 900, 900, against which there shall
at once issue to them by the comptroller
OF the currency National bank notes to an
equal amount, II being further provided
fr,r ~ A.. ~
the secretary of the treasury shall substi-
tute for the greenbacks treasury notes and
silver certificates so deposited to secure cir
ouiation bonds of the same class and
| character as the refunding bonds first
named to the amount OF 5000, 900 900. Such
bends to be chargeable to said banks and
by them accounted for at such price (not
less than par) as the market quotations
may indicate to be their fair market value.
During the period Of time intervening be-
tween the deposit OF greenbacks, treasury
notes aud silver certificates and the sub
sutuuon of the bonds by the secretary OF
the treasury the circulating notss specia-
cally issued therefor shall be EXEMPT from
taxation, Upon such substitution OF bonds
| the funds released thereby shall at once
be transferred by the secrstary OF the
treasury to the bureau OF issue and re-
( demptlon
Fourth. After said banks have depos-
tied such bonds, greenhacks, treasury
notes, or silver certificates to the amount
OF 90 per cent OF their capital, they shall
be permitted to issue bank notes in addi-
ton to the so per cent thus provided to
the extent OF rs per cent Of such depos: t,
which said 20 per cent may be unsecured
BY any direct pledge Of security. but issued
against the assets OF the bank
Fifth, Extend the guarantee Of nav.
nent by the government to all circuIat-
ing notes OF the bank whether issuei
AGAINST deposited security or against az
4 sets ~ y -
sixth. To secure the government against
! iots' Y any, attaching to its guarantee !