Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-12-08

and more humble investors or would
be investors in the public debt are con-
fused and doubtful. and the public
credit is the weaker therefor. Nor Is
the course thus recommended without
wise precedent"
ITO refund our outstanding bonds
now payable in coin into bonds pay
able in gold would strengthen and
confirm the public credit and put us in
position to command the markets
of the world for our securities on the
most advantageous terms"
To accomplish the objects herein
suggested, without contracting the cir.
culation. some other form of paper
money must be allowed to fill the vacu
UNI which would otherwise be occa-
stoned. 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"
He would have the national bank act
amended as follows:
First. Permit national banks to be
organized with minimum capital of
$4,000 in any place having a population
of 20OO inhabitants or less.
Second. Reduce the rate of taxation on
circulating notes secured by deposit of
bonds to one-half of l per cent per
annum
Third. Permit banks now organized or
hereafter organized to issue circulating
notes to the par value of the ref,Indnv
bonds hereinbefore suggested, when de-
posted by them with the treasurer of the
United States; and, further. allow such
banks as shall avail themselves of the
opportunity to deposit as security with
the treasury of the United States green
bancks. treasury notes. or silver certifi-
Gates to total amount of 5000 600 geo
against which there shall ut once be
issued to them by the comptroller of the
currency national bank notes to an euua,
amount, it being further provided that
from time to time. ut his convenience the
secretary of the treasury shall substitute
Tor the greenbacks. treasury notes, and
silver certificates deposited to secure
circulation, bonds of the same class and
character as the refunding bonds first
named to the amount of 500 900. 600 such
bonds to be chargeable TO said banks and
ny 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 inter-
Ven!ns between the deposit of green
backs, treasury notes and silver ccrti-
ticates and the substitution of the bonds
ny the' secretary of the treasury the cir
eulating notes specifically issued therefor
snail be exempt from taxation. Upon
such substitution of bonds the funds re-
leased thereby shall at once be trans
ferred by the secretary of the treasury
to the issue and redemption division.
Fourth. After said banks have de-
posted such bonds. greenbacks treasury
notes. or silver certificates to the amount
or 90 per cent. of their capital they shall
be permitted to issue bank notes in adj
dltion to the 80 per cent thus provided
to the extent of 25 per cent. of such de-
post. which said % per cent may be UNI
secured by any direct pledge of security
but issued against the assets of the bank
Fifth. Extend the guaranty of pay
ment by the government to all circulate
ing 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 safety fund which fund shall
be invested by the secretary of the
treasury and the comptroller of the cur
rency in government bonds. 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. All notes shall be redeemed
in the city of New York at the subtreas-
ury. and at such other subtreasuries as
may be designated by the comptroller of
the currency with the approval OF. the
secretary of the treasury. The control of
SUCH redemption shall be under the direc-
ton of the comptroller of the currency
ana made from a redemption fund of 10
per cent. to be provided and maintained
by the banks.
Eighth. Restrict the issue of national
bank notes to the denomination of so and
upward.