The times. [volume] (Richmond, Va.) 1890-1903, 1897-10-31

nar1 a IN. market quotations my indi-
cate 10 be their fair market value. During
the period OF time intervening between
the deposit of greenbacks. Treasury hoies
and silver certificates and the SUBSTITUTION
OF the bonds by the Secretary OF the
treasury the circulating notes specifically
issued therefor shall be exempt from YAK
alton. upon such substitution OF bonds
the funds released thereby shall at once
be transferred BY the Secretary OF the
Treasury 10 the Bureau Of Issue and Re-
demption.
Fourth. After said banks have depos-
tied such bonds, greenbacks, Treasury
notes. or silver certificates to the amount
OF % per cent. OF their capital. they shall
be permitted to issue bank notes I'm add
ton 10 the 80 per cent thus provided 10
the extent Of % per cent. OF such de-
post. which said . per cent. may be un-
secured by any direct pledge OF security,
but issued against the assets Of the bank
Fifth Extend the guarantee OF pay
ment by the government TO all circulat-
ing notes OF the bank whether Issued
against deposited security or against as
sets.
sixth. To secure the government
against loss, II any, attaching TO It's
guarantee. n tax OF per cent. per annum
on unsecured circulation shall be levied
10 create a safety fund. which fund shall
be invested by the Secretary OF the
Treasury and the Comptroller OF the Cur
rency In government bonds. In ADDITION
TO such fund the government shall be
further protected by having first lien
upon all assets in case OF the failure OK
the Issuing bank.
seventh. All notes shall he redeemed
in the city Of New York at the sub-trea-
sury thereof. and at such other sub
treasures as may be designated by the
Comptroller OF the Currency with the
approval OF the Secretary OF the Trea-
sury. The control of such redemption
shall be under the direction Of the
Comptroller Of the Currency and made
from a redemption fund OF per cent. TO
be provided by the banks.
"EiCmh. Restrict the issue OF national
bank notes to the denomination Of so
and upwards.
CHANGES NOT RADICAL.
IAN examination Of the plan herein sug
gested will discover that the amendments
suggested are not Of n radical character.
il Is believed that banks organized under
the national bank act with these amend
mcnts. would give. upon thoroughly
safe basis. the country a desirable credit
currency, leaving ultimately 20 further
/ freedom Of issue. as the result as time
and experience. 4 careful investigation
! OF the commercial conditions OF the coun-
| try at different periods Of the years shows
I how essential to those sections. depending
upon the prompt moving Of the staple
/ crops OF cotton. wheat. and corn. is
bank note issue which enables the local
{ bank 10 supply within the shortest period
\ OF time and az the lowest cost its Gus
I toners with the means necessary for
! such a purpose In illustration Of this
poiut attention IS called 10 the extent 10
| which the crop-producing sections Of the
! country are now dependent as borrowers
| Of money upon other sections. The ma
! tlonal banks alone located in the South
ern States have an aggregate capital Of
! Sss 06S 600. On October 6. 1896. they had
! borrowed largely from banks In the East.
\ 10 assist I'm handling the cotton crop. sl3.-
| 3sS 000 on March 9th following these loans
had been reduced 70 s2.5l62O0. They sue
| ceeded in borrowing for a part OF their
needs only, but commercial necessities re-
ouired more With proper banking facili-
| ties the necessity now existing Of so large
| borrowing would be reduced TO a mini
mum.
II am confident that under an act allow
! ing a greater liberality Of issue and less
bu-densome rates Of taxation. these banks
would avail themselves Of the opportunity
! and find II % their interest 10 issue in
stead Of but SlSg50000. the amount which
they have az present outstanding. a sum
equal TO the fun amount of their capi-
| tan. and I'm addition in the season Of crop
activities an additional unsecured volume
Of circulation OF p per cent