Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-12-07


once be transferred by the secretary Of
the treasury Ia the issue and redeInp-
ton division.
Fourth After gaid banks have de-
posted such bonds grcpnbnctts. treas
ury notes or silver certifieates TO the
amount of nftv noe cont Of their III
tai they shall b. peimittcd To issue bank
notes In addition In the so Der cent thus
provided. to the cxtont of % pcr cent
OF such deposit. which said 20 per cent
may be unsecured IN nnv direct pletlre
OF security but issued against tho
assets Of ,bc bnnls
Firth. EXtend the guaranty Of paw
ment by the government To All circ,ilnt-
Ing notes of the baul; whether issued
against deposited security or ngaingt
assets.
"sixth. To secure the government
arainst loss. m nnv nttnchinr 10 its
guaranty tay Of 8 pcr cent per an
mum on uns.curod eirculntion shall
be levied TO create n safety fund.
which fund sbaiI he Invested by the
secretnrv Of The TREASURY and tho
comn.rniler Of the ctirrencv in qnverii-
ment bonds In addition to glcb funds
tha Government ANAL he further pro-
tected by having a FIRST lien lpon all
nssots In cnse of the failure of the
issnIno bouk
"Gro,nih An rotes aboll he re-
deemed In the CITY of Now York at
tbe st,b-trene,,r,, and nj such other
! sub trcas,irirs as mas be dcslanatod by
~ r,n,rtrniInr ~ t,c cttt.r.ncy with
1 thc orupvoi nf Tho secretary of Inc
/ transnri rho control Of g,ich redrmp-
lion ami hn un,ler tho Direction OF the
! comptrnIlar Of the currency and made
/ cr,,n, a rr,icfnttion fund OF lon nor cont.
| tn hc proN,idsd and maintained Nv the
I inn,ss
/ "Tciabtb R,striet the issue of ma
I ,t,n.,i i.o,,t, rotsa ia tho denomination
/ or si6 and unyynrds,
/ Tn iiinstr5tc the benefits of This
! IL, +bc secretnrv citps the fact that
rational hanks with n capitaliza-
! t,p Of tGS $50 600 have n circulation
-, 81. Sic ot, onn ard ,ynrn onrnnallad
| "a bnrrntv an ris OO0 from eastern
/ hanl,s ,vitb ,vhIcb 10 noyc Inst vears
| cotton crop His plan he believes
| ,,n,,iS i,d,,rc ,bem 10 Issue gu0irien,
| ,nc,,Ist jon "a transact ali their busi-
\ ness without borrowing. The secretary
I nuotas 0oures from the records of the
romntroIIer's office TO show the two
ner cent tax on unsecured circulation
would more than reimburse the gov
| crnrnont for its losses bv failed bnnks
That loss since the first organization
| Of .nnttoual hanks would have been
si94 S94. white tho fund produced by
! tbo nronosed tax would have amounted
! to SO 454 1l0AS
Tint the areoub1ck in Itg present status
Is n constant menace to the gold re-
| serve and the nations credit and that
The NECESSITY heinz, for a reduction of
I The demand liabilities of the govern
Z mont those offer the most convenient
agents for that action. He says:
"rThe pronosition to retire n large
NORTON ~ these notes into an Issue
and redemptiou division, there TO he
held until the public Is willing to
offer for them in fair exchange an
canal sum in gold. is a proposition to
dignity them with the honor OF actual
gold euuivalency when they are passed
out ms thew have hitherto been hon-
ored with nctual gold equivalent when
demptlon, The proposition Is there
fore quite different from proposition
to retire and destroy th0m."
After answering possible objections
from those who demand the permanent
retirement Of these notes he says:
'I am moved TO press the recon-
mendatinn as submitted. in view of
the following considerations:
Paper money Is the product OF an
Industrial commercial, and financial
evolution Its economizing effect in
the use of metallic money precludes
the idea Of Abandonment until society
shall relapse into anarchy.
Credit ia the base upon which 1t
rests. Paper money is the evidence
that a thing Of value has passed into
the possession of the issuer. and that
the holder OF that paper is willing to
await payment when payment Is
made the evidence Of the transaction
should he withdrawn. to appear again