The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-09
TIONS NOT WHOLLY IN
DORSED
BY LEADING LOCAL BANKERS.
BACKS, WHEN RETIRED,
SHOULD BE. CANCELLED,
AND NOT HELD AS A TEMPTATION.
Mr.. Anderson Regards 1t an AdrOit
Move to Have National Banks
Carry Nations Finances.

With possibly few exceptions, the
leading bank officials of the st. Paul
banks are inclined to criticize certain
of the recommendations contained In
Secretary Cages report. One or two
of those seen yesterday think that Sec
rotary Cages ideas are all right, but
perusal of the following expressions
on the matter show that the majority
of the bankers find something to criti-
else in the document and it's contents.
PRESIDENT MONFORTS IDEAS.
D. A. Monfort, president Second Ma
tional bank, said:
II think that several of Secretary
Cages recommendation if adopted by
congress would have a beneficial effect
on the financial situation. One or two
of them are, perhaps, of questionable
utility 1t does not appear to me that
the proposition to reissue greenbackS
from the treasury only in exchange
for gold can be made of much practical
value. While I am strongly in favor
of the retirement of the legal tender
notes, I think that when retired they
should be cancelled and not held in the
treasury as temptation to some
future congress to again authorize
their reissue Mr.. Cages plan il car
lieu lIllO eh0Cl WOulu ne uhODJCSliOAi-
able as far as it goes, but 1t seems
to me that those opposed to the re-
tirement Of the greenbackS would De
likely to look upon the proposition as
an attempt to accomplish by indirect
means what could not be effected open
ly, and that it would be as difficult to
carry a measure of this kind through
congress as enc to retire the notes
definitely.
Regarding the national bank circu-
lation, think there can be no differ
ence of opinion among those who have
given the subject consideration as to
the advisability ofgpermitting national
banks to be organized with minimum
capital of $25, coo in the smaller villages
and country districts. This amendment
to the national bank act has been
needed for some years.
II think that the tax on circulating
notes secured by bond deposits should
be reduced to Qne-quarter of per cent
per year instead Of one-half of l per
cent, as recommended by Mr. Gage. In
addition to this tax the government
has the profit ION all the lost and de-
stroyed notes of national banks which
are never presented for redemption and
which in the aggregate amounts to a
very large sum.
"At the time the national bank act
bond issues of the government were
below par, even for currency. and on
that account the provision was incor-
porated in the act of limiting the issue
of national bank notes to 80 per cent
of the par value of the bonds deposited
as security. This reason ceased to be
operative years ago, and there is now
no good reason why the law should
not be amended so as to permit the
>fc fffft
of the bonds deposited. "&
81 do not think that the banks should
be required to redeem their notes IN
New York or at any place except at
. their own counters. with the proViso,
however, that worn notes unfit for cir-
culation should be redeemable at the
United States treasury in Washington
under the same conditions as are now
in force. If western banks should be
compelled to redeem their notes In
New York in gold, it might under GER
tain conditions impose burden upon
them greater than they could carry.
Having had practical experience of
the evils of an unsecured currency as
exemplified in this country during and
subsequent to the great financial
crash of ST. I am not an advocate of
free banking either in whole or in part.
and cannot help feeling considerable
distrust of any plan of currency re-
form based upon an unsecured issue Of
bank notes or secured only on the
general assets of the bank. While it is
possible. and probable, that Mr.. Cages
plan might furnish a currency which
would be safe to the holder, yet that
safety so far as the unsecured portion
of it is concerned would be gained
largely at the expense Of tee banks de-
positors. ard the latter are certainly
entitled to as much OnSideratiOn ant,
protection as the former. 1t seems to
me that too much prominence is being
oiven to the idea of an elastic cur
rency' What we want is stable cur
rency which will be equally good in
all parts of the country and under all
circumstances. With such a currency
there will never be any lack of money
actually necessary to carry out all
legitimate business transactions"