River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1897-08-26
The Currency Question.

1 -Na-ANHN~Nf "a NA-N lNtNNN-NA- - --N~
tional banks. 1t is not strange that
Republicans should differ on the
question. We believe, however, es-
| pecially in view Of the experience Of
the last few years, that the Republic
ans favor stricter supervision and
safer methods in banking, instead Of
relaxing any of the present safe
guards.
We are sorry to vote that Repre-
sentative jenkins Of this district is
an advocate of looser and what we
consider more unsafe legislation
than the present law affords on
this subject. This fact has been
brought out by the somewhat
extraordinary position taken in
relation to national banks by Con-
gresham Jenkins of this District,
who will be freely accorded credit
for a great degree of originality if
not of wise craftsmanship. Wash
ington dispatches were to the effect
that on the 18th ult. Mr.. Jenkins
introduced into the House of Repre-
sentatives a bill providing for
amendments TO our national bank
ing laws to issue circulating notes to
the full amount of bonds deposited
with the Treasurer of the United
States; making the general govern
ment responsible for all moneys de-
posted in national hanks; requiring
that all depositors give thirty days
notice of their purpose to draw upon
the bank in which their deposit
has been made, and providing
that such banks shall not be requir-
ed to keep deposits on hand. There
were other amendments proposed in
the bill whose adoption would add
JOY to the heart of every person en-
gagged in the national banking
business, bat the provisions indicat-
ed above will serve to give quite an
idea of the general tenor of the in
novations proposed. If national
bankers are demanding, or even
asking for such legislation as that
outlined above, they are giving
evidence of a rapacious greed which
would shame the most successful
wrecker of railroads in his palmiest
days, and at the same time affording
an illustration of the need of a more
vigilant watchfulness on the part of
the people. The enactment into a
law of the bill introduced by Mr..
Jenkins would have the effect, LIST to
increase ten per cent the amount OF
circulating notes upon which the
banks are drawing interest from indi-
yiduals, while upon the same money
they are also receiving interest from
the government, being interest upon
bonds deposited as surety for the
redemption of such notes; 2d-to
enable all national banks to use all
deposits made therein for the pur-
chase of more Understanding bonds
upon which to issue more cir
culating notes. upon which to draw
more interest from individuals.
This process could be kept up by the
banks as long rs the law would be
permitted by an outraged people t.
remain in force. The provision re-
quiring depositors to give thirty
days notice of their intention to
draw on their account would give
the banks time to purchase bonds
with deposits, deposit such bonds as
security for more circulating notes
to be employed in paying off de.
positors, while the banks would con-
tinue to draw interest upon the
bonds bought with the money Of
depositors and deposited at Wash
ington for the purpose of securing
payment of circulating notes, such
bonds so purchased never having
cost the banks a single penny. The
more we reflect upon the colossal
grandeur(?) of this scheme for piling
up in the treasury vaults at Wash
ington hundreds upon hundreds o
millions of government bond:
bought with depositors' funds upnt
which national banks would draw
interest without ever having invested
dollar of their own therein, thu
greater is our wonder that any at
tempt should be made to carry j
into effect. If depOsitors SHOULD
continue business at the old stand
the only limit to the amount o
bonds upon which the nationa
banks would draw interest tina
would cost them nothing, would b
the national debt. 1t is no. surpris
ing that they regard a "nationa
debt as a national blessing" Sucl
legislation as that proposed is wha
makes not only the poorer but tn
great middle classes FESTIVE ant
prompts them to clamor for some
thing better, which they ought sure
ly to have.