The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-12-08

or n speCtitc form Of payment for the pub |
lie debt would be irimical TO the spirit |
of a qualifying clause i'm the repeating act |
of 1898. which reads: And IL Is hereby de- |
clared to be the policy Of the United |
states to continue the use OF both gold |
and silver as standard money, and to |
coin both gold and silver into money of |
equal intrinsic and exchangeable value |
II this objection be raised, 1t loses all
force when we consider the only two |
methods by which the gold and silver
coins now in concurrent use with us can
be so continued as to maintain the parity
In value of the coins Of the two metals
and the equal power Of every dollar at all
times in the market and in the payment
Of debts
zone Of these methods is familiar to us,
since It has been In daily use In our fnah-
cial system since 1879. The other method
would consist in so advancing the coin
age value of silver by international agree
ment or otherwise as to lend natural
| parity between the two, so that the pres
ent artificial method could be safely aban-
! doned. There is nothing in the proposi-
| tion now under consideration to interfere
with the purpose to secure an inauEura-
| ton OF the latter method. IL must how
ever, be admitted to be a method which,
| if adopted will operate to throw upon
! the governing body whatever measure OF
risk may be involved i'm the experiment,
| and 1t is manifestly just that there the
| rlSh SnOulu lie, TatneE ludl uIoh ''i' h'ib-
| less and possible non-assentins creditor.
BANK NOTES.
"To accomplish the objects herein sug-
! gested without contracting the circula-
| ton, some other form of paper money
must be allowed to fill the vacuum which
| would otherwise be occasoned. The ma
| tional bank note now familiar to our peo-
| pie is the readiest and most practical
agent to accomplish that object, and un-
| der reasonable conditions IL Will be found
responsive to the call.
"An enlarged issue of bank notes thus
contemplated would require 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 eN-
changes. in nowise weaken the system, or
| lessen the stability of the notes to be is
sued. Tho complaint uttered against the
national bank act as it now stands Is not
! directed toward the method of bank or
| ganization or the absolute safety guar
! antced to the nOtehOlder. 1t is directed
| toward those restrictions II embodics,
| which result in its failure 20 accomplish
| the full benefit il ought to carry. The
| requirement of the law now makes 1t I'M
possible to organize a bank with cap
! ital less than $4,000, no matter how small
a place i'm which it is to be located, or
how restricted the volume of business
| there to be transacted. Because of that,
with the added expense of taxation, both
national and local, many communities
are deprived of the aid of banks of issue
and burdened with oncrous rates Of eX-
change and interest charges.
"In order to obviatc to as great an eX-
| tent as possible those objections and
make the act more harmonious with prop
er business conditions, | rCcommend that
it be amended I'm the following partlcu-
lars:
Recommendations.
"First-Pcrmit national banks to be or
ganized with a minimum capital of go
900 in any place having population of
1900 inhabitants or less.
| "Second-Rcduce the rate of taxation
on circulating notes secured by deposit
Of bonds to one-half of per cent. per an
mum.
"Third-Permit banks now organized or
! hereafter organized to issue circulating
notes TO the par value of the refundinS
bonds herenbefore suggested, when de-
posted by them with the treasurer OF The
| United States; end, further, allow such
banks as shall avail themselves of the OPP
| pOrtunity to deposit as security with the
| treasury of the United States greenbGcks,
| treasury notes, or silver certificates to
total amount of $1,000 900, against which
| there shall at Cnce he issued to them by
| the comptroller of the currency bank
| notes 10 an equal GfnOult, II DtlilS luTlHSt
provided that from time to time, at his
| convenience, the secretary of the treas
ury shall substitute for the greenbaCks,
treasury notes. and silver certificates 50
deposited to secure circulation, bonds OF
the same class and character as the re-
funding bonds first named to the amount
of 5000, 900, such bonds to be charge
: able to said banks and by them accounted
for at such price mot less than par) as
the market quotations may indicate to
be their fair market ValUe. During the
period of time intervening between the de-
posit of grcenbacks, treasury notes, and
silver certificates and the substitution
of the bonds by the secretary of the
| treasury the circulating notes specific
ally issued therefor shall be exempt from
taxation Upon such substitution of
bends the funds released thereby shall 1t
once be transferred by the secretary of
the treasury to the issue and redemption
division.
"Fourth-After said banks have depOs-
tied such boLdS, greenbacks, treasury
notes, or silver certificates to the amount
of 80 per cent of their capital they shall
be permitted to issue bank notes in ad-
ditOn to the 80 per cent. thus provided,
to the extent of p 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-lGXtend the guaranty of pay
ment by the government to all circulating
notes of the bank whether issued against
deposited security or against assets.
sixth - To secure the government
against loss, If any, attaching to It's
guaranty tax of per cent. per annum
on unsecured circulation shall be levied
to create a safety fund, which fund shall
be invested by the secretary of the treas
ury and the comptroller of the currency
in government bOIds. In addition to such
funds the government shall be further
protected by having a first lien upon all
assets in case of failure of the issuing
bank.
"SeVenth-An notes shall be redeemed
in the city of New York at the sub-treaS-
uTy, and at such other sub-treasuries as
may be designated by the comptroller of
the currency with the approval Of the sec
retary of the treasury. The control Of
such redemption shall be under the direc-
tion of the comptroller of the currency
and made from a redemption fund of 10
per cent, to be provided and maintained
by the banks
"Eighth-Restrct the issue of national
bank notes to the denomination Of $40
and upward.
SYSTEM REVIEWED.
IAN examination of the plan herein
! proposed will show that the amendments
suggested are not of a distinctly radical
character. 1t is believed that banks or
ganized under the national bank act,
with these amendments, would give upon
a thoroughly safe basis desirable credit
currency leading ultimately to further
! freedom of issue as the result of time and
experience. A careful investigation of
| the commercial conditions of the country
at different periods of the year shows