Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1898-10-29


capital of the bank, but an additional
amount of national currency notes
NAV be issued subject to the tax on
circulation without any increase of
the circulation secured by United
| States bonds, and without taking any
additional reserve notes. That the
national currency notes shall consti-
tute u paramount lien upon all the
assets of. the bank remaining, after
paying the outstanding national bank
notes. Section Il of the act provides
for the withdrawal of the bonds to
secure the circulating national bank
notes after the passage of the act.
one-fourth in four years and the bal
ance after eight years from the pasS
sage of the act without withdrawing
the notes from circulation, and with
out providing in any way for their
redemption.
wild Cat Currency.
From the foregoing it is plainly
seen that the so-called national cur
rency notes are nothing more nor less
than wildcat currency similar to that
existing prior to 1860, and that after
eight years from the passage of this
act the national bank note will also be
ad ded to this class.
The people have had enough bad
money. What we want is good,
sound, safe money. Money not based
on confidence. but based on securities
as good as gold. or as good as gold
and silver under free coinage. The
authors of this bill are opposed to the
mine owners making dollar out of
about four-fifths of an ounce of silver,
but are willing, nay anxious. to have
the bankers make millions of dollars
out of nothing. There are two other
provisions of this bill that should re-
ceive attention. The first of these is
a provision in section "a whereby if
the assets of failing bank are INSULT
cient to pay off it's outstanding ma
tional currency notes, the controller
of the currency may assess all other
national banks their proportion of
such deficiency, and out of the proceeds
of such tax, pay off such notes.
This is simply absurd. What
bank would submit to such a tax?
But it only shows the ability of the
authors. The other provision spoken
of is very innocent looking one for
the establishment of branch banks.
lishment of the United States bank |
with which the people of Jackson's
time had such struggle. If this act
lished with $500, 900, 600 of capital or |
more with branch in every city in |
the land-a mighty trust of trusts |
which can crush out all the smaller |
banks; put foreign agent in every |
branch; contract or expand the cur
rency; control the value of property; /
control the elections, and rule this
republic with the hand of a tyrant.
This bill with allits evil has not one
feature. 1t absorbs the
capital of the bank in it's national
bank notes. 1t creates lien by it's
currency notes upon the as
sets of the bank remaining, that is upon
the deposits of its customers. 1t sub
jects the remaining assets, the peo-
pies deposits, to tax to redeem the
of defunct banks. There
is nothing to secure the depositors
except a fraction of their own depos-
its which little mismanagement of
the bank will soon waste away.
WHO would deposit their funds in
such a bank as a refuge against ruinp
The depositors will be driven to es-
ia blish the postal savings bank or re-
sort to safety deposit vaults, The
bill. if enacted, will defeat the very OBJ
ject of it's authors. An election of
Mr.. Prince means an endorsement of
this measure. Will the merchants,
the manufacturers, the railroad Off
Gals. or even the bankers endorse
such measure?
What the people want is sound
currency sufficient in amount and a
system, every dollar of whose capital
stock and surplus is pledged to Sc
cure the depositors and creditors of
the bank. Such a bank would be safe
md no amount of financial depression
could shake it or create financial
panic"