The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-03-27

| sue Of intereSt-bearing bonds or the
tatxation Of the people for thepayment
of this demand debt. They declare:
1.-THE system adopted is such as to
| continue to govern all profits Of the
loan without any of the disadvantages
of it's character as a demand obligation.
The proposed bill imposes upon the
banks the whole burden Of carrying
and sustaining this debt
There is not profit or return to the
banks thus carrying the nations debt
and they are required by the bill to as
sumo the entire obligation as compen-
sation for the franchise and privileges
granted as national banking corpora
TONS
THE heavy burden assumed by the
banks must be given its due weight in
measuring any additional privileges
which are given them by this bill. The
banks are required to redeem this debt
of the government now assumed by
them, upon precisely the same terms as
the redemption of their own notes
while they are conducting solvent
banking business. 1t is only when, by
the refusal to pay such notes, they be-
come insolvent that the governme2I
recognizes again its demand DEBT ana
assumes it for the complete protection
of the holder Of the note and for the
benefit Of the creditors of the bank by
leaving the remaining assets unln-
paired for the settlement of the just
claims. The form of note thus assum-
ed by the bank with the final redemp-
ton guaranteed by the government
combines the strongest Of all resources
for its ultimate payment. By the bill
the country will be provided with an
ample legal tender currency, consisting
of all the notes substituted for the
present legal tender notes, and of all
the gold and silver coin in circulation,
to the maintenance of whose parity the
faith of the government is sacredly
pledged
The report states that there are sew
eraI possible results which may fol-
low the authority given the banks to
assume the government debt and issue
reserve notes. 1t is conceivable and
probable that large proportion of the
present legal tender notes will be con-
verted into reserve notes and Will
cease absolutely to be redeemable at
the treasury except in the restricted
cases of failure or liquidation of the
bank through which they are issued.
If, however, only a small portion of the
legal tender notes are thus absorbed,
the fact that they are Cancelled when
redeemed in gold by the treasury will
give them a value which will at once
remove all question of their prompt re-
demption and will give them substn-
TALLY the character of gold certificates.
THE fact that a note is to be can
celed on redemption and not reissued
Will tend very greatly to prevent its
presentation for redemption.
The purpose and effect Of the pro-
posed BILL" says the report, lis to
throw upon the national banks the en-
tire burden of finding gold for the
notes of the country. There is no doubt
of the ability to do this if it is required
by law. They have the power to regu-
late the interest rates, within the mar
row limits marked out by economic |
law in such d manner as to attract gold |
to the country by restricting their cir
culation when necessity arises. The |
system proposed by your committee |
provides an easy and adequate method |
of obtaining gold for export from the |
banks without exposing the country or |
the United States treasury to the alarm |
and commissions which have attended |
gold exports during the last five years"
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