The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-12

vided as follows:
Silver dollars, unrepresented by
silver certificates .................$ S,lyl.ll0
Silver certificates ......-...--..--.. 75,06455S
GreenbackS $1,000. ................ S2,2eS, lao
Treasury notes of 1890. ............. 81. 30 400
National bank notes ......-..--..- 7o,s9oSOo
1.-THE breaking up of the silver certificates
over five dollars would increase the money
in denominations under ten dollars py
$780, 132, 95l But the discretionary power
given the Secretary of the Treasury con-
corning the issue OF greenbacks and treas
liry notes in denominations under ten DOL
lars renders possible the withdrawal from
circulation of such denominations of the
ereenback and treasury note, aggregating
1884, $50, 623, and their reissue in larger de-
nominations. Hence the minimum of In
crease of small notes would be the differ
ence between the total amount of silver
certificates over five dollars, or $3.50, 49, 9ol.
and the aggregate or the greenoackS ana
treasury notes under ten dollars, or Sl54-
5S4. 623, which is S95,54S,32S. If the national
bank notes under ten dollars should be
converted into larger denominations, the
minimum increase of small notes would be
but S19, 557, S23; an insufficient increase or
small notes, and hence the denominations
of the bank notes remain undisturbed by
the bill. The demand for money OF small
denominations has been most urgent, and ii
is believed that the cash transactions of
the people will give employment to the in
crease here provided. without increasing
the strain upon the treasury.
NATIONAL BANKS.
1.-THE proposed measure makes no change
in the general banking laws. Indeed.
studied effort has been made to effect
complete guaranty of the quality and par
ity of our money without any disturbance
in the quantity or kind. But without
changing in any form the circulation or
kinds of money three propositions are
made concerning banks which seek rather
to correct recognized defects than to in
any way make original propositions.
1.-The proposition TO allow national banks
to issue circulation to the par value Of the
bonds deposited for their security is
neither new nor partisan. 1t has been
recommended by four Presidents and five
secretaries of the treasury, and bills con-
tanning such provision have been intro
duced in Congress and supported by men,
bers of both political parties. 1t is en-
tirely consistent with the present banking
system. The same reasons which justify
the issue of 30 per cent. of the bonds will
justify an issue to the par value OF the
bonds. The only objection advanced, aside
from that of demagogic attack, generally
upon banks, is that il permits too large
an increase of the volume of circulation
and threatens an imitation. But IT is I'M
fair to compare the amount possible un-
der the proposed bill with the amount of
bank notes now in circulation. The lack
cause of the tax has reduced such circula-
ton far below the amount ever expected,
and such reduction can be creditabiy
charged to a contraction which was equal
ly unexpected The proper comparison is
between the amount possible under the
present law and the amount possible under
the proposed amendment, which would be
but a 10 per cent. increase, an amount
which can be easily absorbed by the busi-
ness of the country and utilized in as many
different money centers as there are ma
ional banks. The proposition is sound in
logic, safe in practice and more consistent
with the system in vogue than the present
law.
TAX UPON BANK FRANCHISES.
"The repeal Of the tax upon national
bank notes and the substitution of a tax
upon bank franchises as measured by their
capital, surplus and undivided profits are
proposed in a spirit of fairness and for
just distribution of the burden Of the tax.
Under the present law every national bank
must deposit at least s12,5 500 in bonds, being
. per cent. of the minimum of the capital
stock (S50,0OO) with which national bank
may be organized. Experience shows that
the metropolitan banks issue the least CIR
culation, many Of them issuing none, oe-
pending upon the large deposits for their
loanable capital. Very often these deposits
are largely increased by country banks es-
tablishing reserve agencies. On the con-
trary, the small banks, forced to draw
heavily upon their capital to make safe
provision for their different reserve funds,
are compelled to issue note circulation to
insure a reasonable loanable fund, and
suffer in the transaction by paying the cir
culation tax in greater degree, in proper
ton to their capital, than the larger and
better equipped city banks.
1.-The per cent. fixed for the tax-one-
tenth of 1 per cent, semi-annually-will pro-
cnhCt9nfiallV Il
lied under the present law. The revenue
received from the present tax during five
years last past was 50, 1853, 94S.S9. while the
proposed tax upon the same banks forsthe
same period would have been 50. rs S5s.12,
the difference being through period of five
years only $3O8. 909. 73. The beneficial results
of this proposition will be that the larger
banks will pay the tax in the same degree
as the smaller banks, while the amount of
revenue will be practically unchanged.
1.-The proposed amendment authorizing
the organization of banks with capital as
no greater population than 1000 is designed
to meet the demand coming from the
sparsely settled districts of the country,
and the small but growing towns for
banking accommodations. BY authorizing
the establishment of banks of small capital
in small communities money will be held in
the country districts. where it can be used
most demand Not only will the supply be
bettered, but interest rates will be made
lower by reason of the change Under the
present law national banks cannot be
gained with less capital than $4,000, and
the consequence is that the amount re-
quired for the purchase of bonds and the
reserve funds have operated against the
establishment Of national banks in small
communities. The bill proposed to change
this in the way named in the hope of
creating money centerS of small degree in
various localities, where the convenience of
the system will greatly aid in the move
ment of crops at seasons of the year when,
under present methods, money for short
time loans is procured only with difficulty,
attended with increased interest rates.
THE advocates of currency reform firmly
declare that the financial operations of the
government are upon the gold standard,
but that the honest fears engendered by
doubtful legislation relative to silver coin
age and the persistent attack upon the
standard of value fully JUSTIFY the legisla-
ard of value, in unequivocal terms, made
fully operative by all proper safeguards.
is the central idea of the law proposed.
1t Is confidently believed that the country
demands 1t and that our action will be
ratified by the people. The supporters of
publican party, nor to the so-called money
centers.' Democrats Of courage and convic-
ton have nobly dared to break from party
lines and suffer, unf1inchingly, the sting OF
the party whip in honest and patriotic
effort to uphold the integrity of the ma
tional credit and make secure the foundation
of the vast and expanding business of our
people. The American yeomanry In the
great agricultural fields OF the country are
fully awake TO the Importance of the SUBJ
5ect and appreciate the wisdom of the legis
lation. Nearly all OF those who wavered in
1896 corrected their error In 1895
while the question is economic and
should be separated from partisan debate,