The record-union., 1898-09-16

| iSouNSo Oy tnC lCuCuiptlOil VI lAC iAOtOS
of failed banks; but no bank shall be
required to pay more than / per cent.
| in addition to it's original deposit OF
per cent, in any one year. The cur
rency notes are also secured by first
lien upon the bonds on deposit as Sc
curity, and upon all the other assets
of the bank
National reserve notes will continue
| to be legal tender until received in the
treasury from failed and liquidating
banks, when liability for them will be
assumed by the Government and they
will be redeemed and Cancelled. Pro-
vision is made that they shall cease to
be required as a basis of circulation
when the Secretary of the Treasury
is satisfied that there is no longer a
sufficient amount available to meet the
| demands for new banks and increased
| circulation.
. National banks are required to pay
a tax of IL of 1 per cent. semi-an-
nually upon their capital, surplus and
| undivided profits. Subject, however,
| to reductions on account of national
reserve notes taken out by them.)
National banks are permitted to es-
tablish branches under regulations to
be prescribed by the Secretary of the
| Treasury.
Branch banking is a system in al
| most universal use in other civilized
countries where the methods of mod
ern finance are well developed, and is
almost essential to the economical use
of capital and the distribution of credit.
One of the most striking benefits of
branch banking is that a branch may
be created and maintained at a profit
in community without sufficient busi-
ness or an independent bank. This
| would permit the extension of credit
into many localities in the thinly settled
portions of the country where it is nov
| impossible. Branch banking, more
over, permits the more ready flow OF
capital from communities where it Is
not needed to those where it is needed
than does the operation of Independent
banks. 1t does not drain of money a
community where money is needed. as
would be the case with banks required
to invest their deposits in securities, but
carries into every community where the
| interest rate is high enough to attract
money the amount which is there ce-
manded and which is in less demand at
other points.
| 'One of the essential purposes of the
bill is to relieve the United States treas
ury from the burden of the constant
redemption of Government paper
money, and to obviate the necessity OF
selling interest bearing bonds running
for long term in order to obtain gold
for the continued and repeated redemp-
ton of notes under the present status
The foregoing is a brief summary of
the chief features of the bill. Doubtless
il is impossible to frame a measure Of
this kind that would suit any one in
every particular. Even we of our own
association, representing only one sec
ton of the country, would differ among
ourselves as to details, and perhaps,
also, as to some principles. The diff
1iculty of securing an agreement of
! business interests all over the land on
what is essential in currency and bank
| ing reform is known to us all. The bill
| combines the most important principles
| to be followed in the revision of our
| monetary legislation, those in regard
| to which thinking minds are almost
| unanimous in a form politically feas-
| ible. It practically retires the green
| backs, but without the issue of bonds;
| it maintains the parity of all our
moneys, while giving a larger scope
| to the legitimate use of silver; it af-
| fords an opportunity in this country
of testing bank circulation based upon
| general assets, but makes the banks as
sumo, in return, the burden the cur
| rent redemption of Government notes;
above all, it is the most direct recogni-
tion We have yet had of the fact that
ali our money is, and must be, basel
upon the gold standard-at the same
time. through branch banks and a re-
duced minimum capitalization, furnish
| ing sparsely settled districts adequate
provisions for their need of capital
thus silencing the alarmist cry of
! contraction where it has hitherto
reached too credulous ears.
From the standpoint of sound money
the bill is the best that has been pre-
sented to Congress, and yet it comedies
| more than any of the others to the
honest inflationist, whose real need is
improved banking facilities. AS Chair
man Hanna says: Every advocate Of
change in our currency laws, ard
every citizen and business man who
seeks safe and stable things in finances
should Immediately recognize the vital
Importance of complete support of this
measure. 1t is a great step forward" !"
In conclusion: Under date of August
10Th, the press dispatches from New
York reported as follows:
Members of Democratic committees
in fifteen States in the South and West
emphatically indorse the remarks made
by Ex-Governor Stone of Missouri to
the effect that Bryan will be re-nomi-
mated in 1900 and that the issue of the
| campaign will be the free coinage Of
| silver"
We may as well prepare promptly
and energetically to meet this threat
ened onslaught of the advocates of free
| silver-in other words, of fiatism.
The monetary standard-the stan
dard of value-of this country, and Of
the commercial world, is gold, and the
experience of the United States in the
gold standard.
In the war just closed our army and
navy displayed invincible prowess and
set an example of intrepidity, chival-
rous magnanimity, fortitude, patience
and compassionate forbearance that is
the admiration of mankind. Let the
commercial and financial interests OF
the United States no less fearlessly and
considerably press forward in the path
of right and duty, undeterred by the
clamor of illusion. prejudice and mis-
conception. toward the attainment of a
monetary system that shall command
What our country in other particulars
enjoys-the respect and confidence Of
1 h.aW " frr,1