The times., 1897-12-08

shall at once be transferred By the SecTe-
tary OF the Treasury To the issue and re-
demption division.
.After the banks have deposited such
bonds, greenbacks, Treasury notes or silver
certificates to the amount of 50 per cent OF
their capital they shall he permitted to
issue bank notes in addition to the SO per
cent thus provided, to the extent OF 20
per cent OF such deposit, which said %
per cent may be unsecured by any direct
pledge of security but issued against the
assets of the bank.
Extend the guaranty OF payment by the
Government TO all circulating notes af the
bank whether issued against deposited Sc
cuTity or against assets.
TO secure the Government against .oSs
il any, attaching to its guaranty lax of
per cent per annum on unsecured circu-
lation shall be levied to create a safety
fund which fund shall be invested fy the
Secretary OF the Treasury and the Comp
trollerof the Currency i'll Government nonds
In addition TO such funds the Government
shall be further protected by having :. 9irst
lien upon all assets in case of failure of
the issuing bank.
IAN notes snail be redeemed in the city
such other subtreasnries as may ne deslg-
mated by the Comptroller Of the Currency
with he approval or the Secretary ~ the
Treasury. The control OF such redemption
shall be under the direction OF the >omp-
troller Of the Currency and made trom a
redemption fnnd of 10 per cent, 20 be
provided and maintained by the hanks.
Restrict the issue OF national panS notes
to the denomination OF $40 and upward"
The Secretary feels justified in saying
that the. amendments are not of a dis
tincty radical character. lie believes the
plan viii give the people more credit money
for the movements or their crops, ctc., the
local bank heing in close touch with local
conditions.
The Government note he Considers in
adequate to meet local Conditions, existing
asf does at a given time in fixed lmO Ints.
III other words, il is not elastic.
In Justification or his proposed retire
ment of the greenbaeks, the Secretary says:
" 1t Will at once appear to many that
the proposal LeTein made to place n con-
ditiOnal retirement the sumof S2Oo, 1Op, 600
in our legal tender (sreenbacS) issues is
a Discrimination against form of paper
money, which, under the influence of a
worthy sentiment, has become to them
symbol OF the unity and power OF the ra-
tiOn's life. A little reflection, however,
will lead to a conclusion quite 10 the CON
trary OF such an inference. The
historical fact is that IL has been through
the greenback, the only unaIioyed credit
note Of the Government, that the endless
chain has been worked. Once discussed,
these notes find their WAY, by :. purely
natural process, To the banking reRters,
where, in case of an outward lnoyem INT
OF gold, or because OF any internal move
ment OF distrust, they have neen ! ade
ready agency to depete the gold re-
serve in the public Treasury. The propo-
sition to retire a large portion of these
notes into an issue and redemption di-
vision, there to be held until the public
is willing to cffer for them in fair ex-
change an equal sum in gold, is a JrupO-
sitiOn 60 dignity them with the honor
Of actual gold equivalency, when they are
passed Out, as they have hitherto been
honored with actual gold equivalenCy when
pushed in upon the Treasury for 'tLemp-
ton
He disTEisseS the greenbaclis win this
concession to one orthe coordinate ranches
or the government There IS nothing
whatever TO prevent the lawma king power
from issuing at any time and in any
amount the legal-tender notes orthe United
states to circulate as money. Such is the
final opinion OF the supreme Court, from
which there is no appeal
Taper money, the Secretary says, .s the
product Of social evolution. Credit is the
base upon which it rests. The h1u,s Is an
agency, the result also ofpure evolutionary
movement. and Whatever opera tes TO
render the bank safe, efficient and avail
able agent to the people operates to the
general prosperity
The report concludes as follows:
ITO allow national banks TO iSstie cirCulat T.
ing notes equal TO % per cent Of their