The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-30

COIN IN likeness as OASIS koT paper, or
| in addition to any paper 80 issued mere
1 " as a more convenient representative
| OF the more cumbersome metal there
should be a liberal supply OF paper cur
rency; not the promise TO pay OF some
unknown and perhaps inexperienced
| and reckless banker; not based upon a
percentage OF available and larger per
| centage OF unavailable assets; not cur
rency in which the conservative and
substantial banker is compelled by law.
! and without option or chance at su-
! pervls.on, 20 guarantee the acts OF those
| who by temperament or necessity are con-
stantly beyond the danger line; not a
currency in which the government must
/ make guarantee OF the honesty and
ability Of every banker; but currency
based upon a deposit Of gold bonds. dol
| lar for dollar, and without unnecessary
and cumbersome conditions and re-
quirements.
Not only should such currency be
provided. but its substitution for the de-
mand notes should be prompt, complete
| and upon terms equitable TO the pres
| ent holders of the valuable and danger
Gus gold demand promises, and with a
minimum OF disturbances to our daily
| business.
| TIE suggested retirement OF the gold
notes by sale Of bonds, which bonds
| should be available as basis for future
! issues of circulation, under the present
| or modified national bank act, is OBJ
| jectionable, because II the entire bond
| issue and note retirement were consum-
mated at once. there would inevitably
be quite long interval Of dangerously
reduced circulation before banks could
| gather up the bonds and obtain and is
! sue the new circulation.
"The bonds might be purchased by
| Europe, or for trust funds or other per-
manent investment. and so never be de-
posted as a basis by which to make
! good the volume OF circulation.
IF, as has been proposed in some OF
! the plans, the demand notes are 10 be
! retired by a sale OF bonds only so fast as
| additional circulation is substitute bas-
! ed on new or old bonds, there will be
continued for several years the danger
under which we have been living with
| its consequent evil effect upon conf
dence and business. and during the en-
tire process partial shrinkage Of cir
| culation.
Even II all such bonds were even
tually deposited for currency issues, the
| advantage of rhe annual interest on the
bonds and of the profit on Ioanaole cir
| culatlon would accrue only to bankers.
national or state, while equity would
seem to demand that any advantage
| from the change or substitution should
accrue directly to those VINO are holding
the notes which our national safety de-
| m,nds should be surrendered.
Therefore, an act Of congress should
| provide that this 346 million remnant oe
| our war debt, and the 147 million Of
notes issued for the purchase Of useless
silver under the act Of 1890, should, for
the national safety. be funded into 20
year 2 pei. cent gold bonds; that these
| bonds should be available for deposit IN
Washington as a pledge for the ulti-
mate redemption OF circulation to be is
sued dollar for dollar; that in order to
| compensate the present holders for the
| surrender Of the gold demand notes, the
| issue OF an equal amount OF bonds and
| OF circulation secured thereby ehall
| made direct to the holder of the notes.
| whether national, state or savings
| banks, trust companies or individuals,
| but only in sums Of $25. 900, or muitiples
| thereof: that the bonds shall be left with
| the treasurer of the United States in
| Washington and shall be recorded in the
name of the bank, company or individu-
al making the exchange; that the circu-
lation 10 be issued upon the bonds and
shall not bear the useless and unneces-
sary promise to pay OF any banker, but
| shall be certificate in usual currency
from the denominations OF $1,000 and
upwards by the proper officers of the
| government that they are representa-
| tives OF and are secured by United
States government twenty-year per
cent gold bonds, deposited for their re-
| demption; that IN order that with the
! least inconvenience in proper record
and accounting, the benefits OF the ex-
change may be enjoyed by all holders OF
the demand notes, individual holders OF
| less than $4,000 OF the notes may COM
| bine and make the exchange through a
frustee who only shall b recognized as
| the depositor and recorded owner Of the
| bands. and through him the delivery OF
| the certificate currency shall be made:
| that the semi-annual interest OF said
| bonds shall be paid to the registered de-
positor; that assignments in sums OF
| SIS. 00o or multiples thereof, may be
made at any time, and when recorded
shall govern the payment OF future in
| terest inrtallmente: that 10 cover the
| cost OF the entire transaction, a circu-
| lativn tax OF one-hsH OF one per cent
/ per annum shall be charged, which shall
| be deducted one-half each out OF the
semi-annual interest installments paid
upon the bonds: that prior 70 the ma
| turity OF a,he bonds only the recorded
owner OF them can surrender the certi-
| ficate currency in sums Of $3.50 or null
tiples. and take up the bonds. in which
: case the accrued circulation tax up 20
| dace shall be paid in cash; that the ex-
! change shall cease within a reasonable
| time after the date set for the redemp-
| ton OF the old notes by the new bonds
and circulation.
This would be practically funding the
remainder OF the war debt at ~ per
/ cent instead OF and per cent. as was
! originally done: and yet the advantage
! OF the twenty years interest and an
equal amount Of absolutely secured loan
! able circulation in place OF the present
notes would ensure prompt AMI full ex-
| change.
The new circulation should be re-
! ceivaole for all government dues and De
! a legal tender, except where other wise
/ contracted.
I
! ent notes could make up A syndicate