The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1898-01-13

Should they issue notes up to 80 per
cent of that capital they would have
$32 !, 900, 900 of notes, and there would
be 81, ,O5G, 900, 600 of resources against
these notes, not counting stockholders
liability.
II these resources of the country banks
are insufficient security for this amount
of notes, they will be insufficient only
because there would then be snch con.
dition Of business paralysis that govern
ment, municipal and railway bonds
would he valueless, and also few if any
banks in the reserve cities would re-
main solvent. The occurrence of this
disaster ID so improbable that it's con.
sideration may be dismissed. IN some
quarters fear is expressed that there
would be an undue expansion under this
plan. There is no danger Of this. The
system of redemption not only at the
banks, but at the treasury in Washing.
ton and at the subtreasuries, would
strongly guard against that. The expan-
sion over that which could be effected
were no notes issued at all will be found
upon investigation to be small Dan
gerous expansion does not take the form
of the issue of bank notes, but of the
extension of credits. Very few borrow.
ers take their loans in the form of bank
notes. The bank note is only one form
in which he to whom credit is given
will use that credit. He can use it
equally we'll for most purposes if the
loan is placed to the credit of his ac-
count by the bank making the loan to
him, or by some other bank or by a pri.
vate person.
The existing TAX of per cent per an
nun on circulation is repealed. In its
place taxation of capital, surplus and
undivided profits is provided. The is
sue of circulating notes is only one
form in which bank expresses its de-
mand liability. The other form, de.
posits, is under the development of
modern banking operations, of vastly
| greater Importance and the one which
in cities and highly organized CONNER
cial communities is most used. In Octo-
| ber, 1897, the country banks issued
more than 10 per cent Of all notes is
sued. The reserve banks, except those of
|
Chicago and st. Louis, issued more
than IS per cent, New York more than
per cent, and Chicago and st. Louis
together about ono-half of per cent.
Surplus and undivided profits and cap.
ital show the profits and property OF
banks, and these are certainly more le
gitimate objects of taxation than the
| H..
called upon by their customers to ISSUE
to serve chiefly the convenience of those
customers. This tax makes as cquitabl,
an apportionment of tho expenses of tn,
system as can be devised.
Plan of Currency Reform.
I.-METALLIC CURRENCY AND DEMAND oBLI
CATIONS
/. The existing gold standard shal
be maintained, and to this end thl
standard unit of value shall continue
as now, to consist of 20. s grains of golt
nine-tenths fine, or 90. % grains of pur,
gold as now represented by the one
tenth part of the eagle. All obligation
for the payment Of money shall be per
formed in conformity to the STANDARD
aforesaid, but this provision shall no
be deemed to affect the present lega
tender quality of the silver coinage O
the United States or of its paper cur
rency having the quality Of legal ten
der. All obligations of the United State
for the payment of money now existing
or hereafter entered into shall, unles
otherwise expressly provided, be deemeC
and held to be payable in gold coin o
the United States, as defined in tn
standard aforesaid.
2. (In substance) Gold coinage IA
now.
; 3. No silver dollars shall be hereafte
, coined.
4, 3 and G. (In substance.) Coinag
J and redemption of subsidiary and mino
; coins as now.
z. There shall be created u separat
division in the treasury department, t
be known as the division of issue an
; redemption, under the charge of an as
, sistant treasurer of the United States
who shall be appointed by the presiden
by and with the advice and consent O
the senate.
s. To this division shall be commit
} ted all functions of the treasury depart
, ment pertaining to the issue and re
demption of notes or certificates and t.
, the exchange of coins, and this division
shall have the custody of the guarante
and redemption funds of the nationa
banks and shall conduct all the opera
! tions of redeeming national bank note
as prescribed by law, and to this di
vision shall be transferred all gold coli
held against outstanding gold certiti
Gates, all silver dollars held against ont
standing silver certificates, all United
!, States notes held against outstandinI
currency certificates and all silver dol
lars and silver bullion held against out
, standing treasury notes of 1890, and al
subsidiary and minor coins needed 70
: the issue and exchange of such coins an
the funds deposited with the treasur
for the liquidation of national ban
notes. All accounts relating to the bust
ness of this division shall be kept entire
ly apart and distinct from those Of tn
fiscal departments of the treasury, an
the accounts relating to the nations
banks shall be separate and apart fror
all other accounts.
o. A reserve shall be established i
this division by the transfer to it by tn
treasurer of the United States from tn
general funds of the treasury Of a
amount Of gold in coin and bullio
equal to 20 per cent of the aggregat
amount of both the United States note
and treasury notes issued under the az
of July IA, 1890, outstanding, and
further sum in gold equal to per cer
of the aggregate amount Of the coinag