The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-09

eminent and are practically a first
lien on the assets Of the bank, is a
clever devised scheme Of the govern
ment to have the banks shoulder it's
financial burden. 1t would greatly in
crease the currency, and think 1t
would be perfectly safe.
Mr.. Cages plan provides for a re-
tention of 10 per cent in the treasury
redemption fund, which I think is too
high; per cent would be sufficient.
The people don't want large sums lock-
ed up in the treasury. AS said before,
however, 1 think Mr.. Cages plan the
best one yet submitted, and 1 get cir
culars and details of different plans
every day almost"
THINKS IT COMMENDS ITSELF.
Vice President E. H. Bailey of the
First National bank, said: "Legisla-
ton is to be greatly desired. and on the
whole think Secretary Cages plan
will be commended by the people at
large after they have given it careful
thought. 1t seems to me to meet the
eXigencies of the case in the principal
conditions, but the matter must be
worked out, and that by practical ex-
perience. 1 have been familiar in
general way with Mr.. Cages views for
some time; he and the president are In
full accord, and have evidently given
the subject much thought.
CONFIDENCE IN MIR. GAGE.
Kenneth Clark, president of the
Merchants National bank. said that
he had not given the plan suggested
by Secretary Gage much cons1dera-
ton yet, but he had every confidence
in Mr.. Cages ability as a f1nancier
and approved of his principles.
COMMENDs PART OF 1T.
J. w. Lusk president of the Nation
al German-American bank, said that
the suggestions to redeem the green
backs in gold, to reduce the amount
of capital stock necessary to estaDllSh
national banks and the reduction OF
the tax on circulation were all points
that should have the hearty cOmmen-
dation OF all; they are necessities
He looked upon the idea of issuing
bank notes upon the assets OF the
bank to be bad; that it is positively
dangerous and would be an injustice
to the depositors, who should have the
guarantee of assets. The danger
would arise from any poor manage
ment of the bank. He believes the
bank should deposit it's bonds and re-
ceive notes for the full par value;
then that the taxes should be not to
exceed one-fourth per cent on the cir
culation, which is enough to cover the
expense.
SOME DANGER IN IT.
Joseph Jockey, cashier of the Ma
tional German-American bank. only
partially indorses it. Mr.. Jockey has
given considerable attention to
study of finance and monetary mat
tiers; in fact Mr.. Jockey. in a paper
read before the State Bankers asso-
lit l1S
July, advocated the establishment OF
national be nks with a capital of $780,,
900. He also calls attention to the
danger which would arise by the is
suance of currency on the security of
bank assets.
RECOMMENDATIO APPROVED,
Gustav Willius. president of the
Germania bank, said that he had not
read the recommendations very care
fully yet, but he thought in the main
they were good; the people expected
some financial legislation, and he had
every confidence in Secretary Cages
discrimination between the good and
the bad.
WARMLY INDORSES 1T.
Herman Scheffer, cashier of the
Union National bank, indorses Sec
rotary Cages plan warmly. saying:
Il have the pleasure of a personal
acquaintance with Mr. Gage. and 1
know his practical experiences as a
banker and financier qualify him to
formulate a plan and that any such
plan proposed by him is safe one.
He lived for years in Chicago, the
gateway from the East to West, and
he knows the requirements of both
sections.
oil SnpOpctp6
think his is the best. The country de-
mands financial legislation; with
out some radical changes pros
perity will never be permanent.
The issuance of circulation based
on the banks assets will give
an elastic currency and will
ward off any threatened painless 1
consider it safe; practically the same
idea has been in vogue in England
and Germany for years. I indorse the
plan of Mr.. Gage in it's entirety"
ONE OBJECTIONABLE SUCCESS
TIO7T.
Walter +. Myers. cashier of the Cap
ital bank, said: Il have only had time
to read Secretary Cages report hur-
riedly and do not know that | am pre-
pared to express an opinion in regard
to it. There is one point, however, the
danger of which seems to me must be
apparent to everyone, and that is the
issuance by banks of unsecured notes
or currency in any form and particular
ly in the manner suggested by Mr..
Gage. AS 1 read it he wishes banks to
be allowed to issue notes or bills with
out security for 25 per cent of their
capital upon paying a tax of 2 per
cent. He does not state whether this
tax is to be annual or not. From the
way it reads 1 should judge that it is
to be paid only at the time the bills
are issued, which would mean a per
petual currency for a tax of per cent
paid at the time of it's issuance. If the
tax was 2 per cent per annum there is
not a country bank in the United
States that would not issue to full
limit at once and keep it out indefinite
ly, as it would amount to so much ad-
ditional capital borrowed at 2 per cent
per annum without security with no
possibility of it's ever being called.
do not believe the 2 per cent per annum
would cover the loss occasioned by this
form of currency and on Mr.. Cages
plan the government, who are to guar
antee this currency, would undoubtedly
have to meet a large deficit.
LOCAL LABOR NEWS.