Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1898-01-03

vuos0c1 ~ tuo uccor1ty On Sne80 0OteD
10 accomplish the samc purpose that the
deposit Of bonds Il intended to accom-
paish-namely, b guard against los
through tho miAoetune o. bad manage
ment Of single banks-snd thus ave
tbS boodee Of bank note the need of as
oeFtaining the standing Of any hank
The objection that Is sometimes made
that the larger banks in the gredt Cities
would NOT issue notes because uf IN
lppreAcnded liability foe other hanks,
= sbown b. satisfies 10 30 groundleA.
The year Of largest hank failures was
1898. but bad all tho banks Of the coun-
~ then iskued notes up to so per cent
Of their capital the amount Of their as
sessment to make good the ascertaiue,l
deficiencies Of that year up to tho time
Of the coinptrollcr's report Of 1896
would have been ouly q small fraction
Of ! per cent. Had so per cent Of the
capital Of all national banks bonn issued
in notes upon the proposed plan since
the beginning Of, the national banking
system In 1863 tho assessment upon tho
banks annually would have been ap
amount so insignificant that it need not
be taken into account. Taking tho coun-
try banks ns whole, 1t IL found that on
Oct. 8 last they had $40I /, 900, 600 Of the
t681, 900, 600 Of national bank capital.
Should they issue notes up to 80 per
cent Of that capital they would havo
e32l. DOC. 900 Of notes, and there would
be 81, csc, 900, 900 q resources against
these notes, not counting stockholders
liability.
II these resources Of the country banks
aro insufficient security for this amount
Of notes, they will be insufficient only
because there would then be such con.
dition Of business paralysis that govern.
ment, municipal and railway bonds
would be valuclcss, and also few If any
banks In the reserve cities would re-
main solvent. Tho occurrence of this
disaster Is 20 improbable that its con.
sideration may DO dismissed. In some
quarters fear is expressed that there
would be an undue expansion under this
plan. There is no danger Of this. Tho
system Of redemption not only ut the
banks. but at the treasury in Washing.
ton and ut the subtrcasuries, would
strongly guard against that. Tho expan.
sion over that which could DO effected
were no notes Issued ut 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.
crs take their loans in tho form-of bank
notes. Tho bapk note is only ono form
In which he to whom credit is given
will usc that credit. He can use il
equally well for most purposes IL the
loan 10 placed to tho credit Of his &c.
count by tho hank making the loan to
him. or by some other bank OF by pri.
vato person.
Tho existing tax IT per cent PSF an.
mum ON circulasipa n repealed. In its
place taxation q capital, surplus aud
undivided profits IS provided. The IL.
sue Of circulating notes is only one
form In which bank expresses its de.
mand liability. Tho other form, de.
posits IL. under tho development Of
modern banking operations, Of vastly
greater importance and tho ono which
in cities and highly organized commer.
cial communities Il most used. In Octo.
Der. 1897. the cpuitry banks issued
moro than 20 per cent Of all notes is.
sued. Tho reserve hanks ctcept those oi
tho central reserve cities, New York,
Chicago end 81. Louis Issued more
than IS pr cent, New York more than
per cent, and Chicago and st. Louis
together about one-haK Of ] per cent.
Surplus and undivided profits and cap.
ital show the profits and property d
banks. and these arc certainly norc lie.
gitinate objects Of taxation than the
mere instruments which banks may b
called upon by their customers to issue
10 servo chiefly tho convenience of thost
customers. This tax makes rs equitabl,
an apportionment Of the expenses Of tllt
system rs can be devised. t&.l.
Plan oe Currency Reform.
L-NErALLic CURRENCY AND DEMAND oBLi.
CATIONS.
!. Tho existing gold standard shall
b maintained, and to this end TIN
standard unit Of value shall continue
rs now. to consist Of %. 8 grains Of gdat
nine. tcutbs fine. or a3. 20 grains of pur,
gold rs now represented BY tho one
tenth part Of the eagle. All obligation
for the payment Of money shall DO per
formed in conformity to the staudart
Aforesaid. but this provision shah no
30 deemed to affect tho present lsgai
tender quality If the silver coinage q
tho United States Of Of its paper cur
rcncy having the quality Of legal ten
der. All obligations Of tho United State
for tho payment Of money now existin,
o. bercaftef entered into ehall, unles
otherwise expressly provided. be deeme,
and held to Be payable in gold coin o
the United States, as defined in th'
standard Aforesaid.
Q. lin substance.) Gold coinage o
now.
3 No silver dollars shall be hereafte
coined
4 8 and Q. I'm substancc.) Coiuag
and redemption Of Subsidiary and minu
coins as now.
:. There shall DO created . separat
division In tho treasury Department. &
b known % the divisicn Of issue sni
redemption. under tho charge Of IN a
sistant TREASURER q fbe United States
Who shall be appointed By the rreeiden
BY and with the sdvice and consent q