Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1897-12-13

ordinary operations of the treasury as
they relate to revenue and expendi-
lures, a department to be designated
and known as the issue and redemp-
ton division. To this division the
sum of S125, 100000 in gold should be
set over from the general fund in the
| treasury, to be used only for redemp-
ton purposes, and all the silver dol
lars now held for redemption of silver
| bought under the act of 1890, should
be passed to the same account.
Further, that the sum of 100000, 900
IN the legal tender notes of the United
States known as green backs be col
lected as hereinafter described, and
deposited in the said issue and re-
demption division, to be disbursed
therefrom only upon the receipt in ex-
change therefor Of an equivalent
amount of gold coin. Such gold, when
SO secured, to be held in said division
as part of the general redemption
fund.
Second recommend that pro-
vision be made for the issue Of re-
! funding loan bonds, made payable af-
ter ten years at the pleasure of the
government, such bonds to bear inter
est at the rate of 27a per cent. per an
mum, payable, principal and interest,
in gold coin; and that the secretary
| of the treasury be authorized to issue
such bonds and receive in payment
therefor, with an equitable allowance
for the difference in interest, any part
or all of the outstanding loans of the
United States which mature by their
terms of payment in the years 1904,
1907 and 1925.
''To accomplish the objects herein
suggested without contracting the cir
culation, some other form of paper
money must be allowed to fill the
vacuum which would otherwise be oc-
casioned. The national bank note now
familiar to our people is the readiest
and most practical agent to accomplish
that object, and under reasonable con-
ditions it will be found responsive to
the call.
"An enlarged issue of bank notes
thus contemplated wot11d require al
number of amendments to the present
national bank act These amendments
should be made only upon such con-
sentative lines as would, while grant
ing the necessary aid to the business
world in facilitating exchanges, in no
wise weaken the system, or lessen the
stability of the notes to be issued. The
complaint uttered against the national
bank act as it now stands is not di-
rected toward the method Of bank Or
ganization or the absolute safety guar
anteed to the noteholders. 1t is di-
rected toward those restrictions it en-
bodies, which result in it's failure to
accomplish the full benefit it ought to
carry. The requirement of the law
now makes it impossible to organize a
bank with a capital less than $4,000,
no matter how small the place in
which it is to be located, or how re-
stricJed the volume of business there
to be transacted. Because of that,
with the added expense of taxation
both national and local, many com
munities are deprived Of the aid of
banks of issue and burdened with on
erous rates Of exchange and interest
charges.
In order to obviate to as great an
extent as possible those objections and
make the act more harmonious with
proper business conditions, I recon-
mend that it be amended in the fol-
lowing particulars:
"First-Permit national banks to be
organized with a minimum capital of
S25, 700 in any place having a popula-
ton of 1000 inhabitants or less:
Second Reduce the rate of taxation
on circulating notes secured by deposit
OF bonds to one-half of 1 per cent. per
annum.
"Thlrd-Permit banks now organized
or hereafter organized to issue circulat-
ing notes to the par value of. ''the
refunding bonds herinbefore sug-
gested,' when deposited by them with
the treasurer of the United States.
01ANs LII C4ACA, ctlIOW SUCH DdnkS TO de-
! post as security with the treasury of
the United States greenbacks, treasury
| notes, or silver certificates to total
amount Of S2OO,OOO,OOO, against which
| there shall be at once issued to them
! by the comptroller of the currency
national bank notes to- an equal
| amount, it being further provided
| that from time to time, at his con-
j venience, the secretary Of the treas
ury shall substitute for the green
backs, treasury notes and silver GER
tifcates SO deposited to- secure circu-
| latiOn, bonds of the same class and
character as the refunding bonds first
named to the amount of $500, 900, 900,
such bonds to be chargeable to said
/ banks and by them accounted for at
| such price (not less than par) as the
market quotations may indicate to be
their market value. During the per-
iod of time intervening between the