The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-12-08
SffTf + t-ST.ff ii

known as greenbaeks be collected as here
matter described and deposited in the said
issue and redemption division, TO be dis
bursed therefrom only upon the receipt
gold coin; such gold. when so secured, to
be held in said division as part OF the
general redemption fund.
"Second-I recommend that provision be
made for the issue OF refunding loan
bonds, payable after ten years at the
pleasure of the government, such oonuS
to bear interest at the rate OF 2h per cent.
per annum: payable. principal and inter
est. In gold coin: and that the secretary
of the treasury be authorized to issue
such bonds and receive in payment there
for: with an equitable allowance for the ne
the outstanding loans OF the United States
which mature by their terms Of payment
in the years 1904. 1907 and 1925"
Continuing, he says:
1.-THE advantage involved In the proposed
action lies in this: 1t removes an am
biguity from our contract obligations-an
ambiguity which affects unfavorably the
government credit. The word 'coin,' now
used 70 express the obligation In the pub
no doubt understood by the more dis
eliminating public creditor to mean gold
coin, and the solemn act of congress
pledging the maintenance OF silver coin
upon parity with gold coin makes 1t
impossible to construe the word coin as
therein used, to mean anything other than
d
is conclusion Of logic rather than clear
statement Of fact, the simpler and more
humble investors, or would-be investors,
in the public debt are confused and doubt
full. and the public credit Is the weaker
therefor"
The secretary then goes on to show that
the course suggested has a precedent IN
the act of congress OF 1859. p!edging the
government to the payment OF all interest
bearing obligations In coin or its equiva-
lent.
Changes I'm the banking Law.
To obviate the difficulties in the way Of
this method of supplying the deficiency.
he recommends the following changes in
The national banking law:
"First-Perm.t national banks to be or
canned with minimum capital of So go
IN any place having population of 1000
'Sscond-Reduce the rate of taxation on
circulating notes secIyd By deposit OF
bonds TO one-half OF per cent. per an
mum.
"Third-Permit the banks now organ
ICED or hereafter organized to issue circu-
iating notes TO the par value Of the re-
funding bonds hereinbefore suggested
when deposited by them with the treas
urer Of the United States: and, further.
GLOW such banks as shah avail them
selves of the opportunity to deposit a SCI
curity with the treasurer of the United
states greenbacks. treasury notes or sill
yer certificates 10 total amount Of sea- =
tN|s"N. against WHICH tneCe small at once
be Issued 10 them by the comptroller OF
the currency national bank notes TO an
equal amount, il being further provided
that from time 20 time. at his conven-
fence. the secretary of the treasury shall
substitute for the greenbacks treasury
notes ana silver certificates 80 deposited
To secure circulation, bonds Of the same
Ct3Ss ana character as the refundiug
bonds first named TO the amount of S2l1,
V@H1. Silcb bonds 70 Zee charged bic TO said
hanks. and nv them accounted for at such
price mot less than paTl. AZ the market
quotations may Indicate 10 be their IA
intervening between this deposit 81 green
backs. treasury uoses and silver cert8fi-
Gates. and the substitution of the bonds
bV the secretary ~ the 1vsa <9irv TIT. cir
culattug neteS specifically issued therefor
ShaIl ce exempt from taxation. srog such
substitution of bonds the funds released!
thereby shall AZ once he transferred rs
the secretary OF the treasury 20 the issue
and redemption division
''Fourth-After said banks have der,osft-
ca SUCH bonds RreeDhaeks treasury notes
o. silver certificates 70 The amount Of "
per CeUi. Of Ehefr capital they shall lsa
permitted 10 SSStte bank notes in addition
10 The ~ per cent thus provided To the es-
tent ~ - per cent 81 such ueu8sSif which
SAID . per cent may be unsecured hv any
direct pledge OF security. but issued
aealnst the assets Of the bank.
'F9ffh--EXtend thu gstaranry. ~ ma -.
notes Of the bank. whether Issued against
depoSl tied securities or aga5ns; assets.
sixth ~- To secure me govern men
against loss. Z any. attaching 10 its guar
AMY, 3 TAX q per cent p"~ sUnurY1 on $50
cured circulation SHAH 6a levied TO cre4fe