Omaha daily bee., 1899-11-28

Of the bonde ,,;btio. "a, -, ot,, oncouraying tbe
ia,z. a. '.'',' ''Ply -,
''''O /" 6eHeIdl Hote Vi Na1'V" "'9i''N
the comptroller summarizes the result OF
circulation given more in detail hereafter,
Profits in dollars upon circulation against
deposit of 100000 government per cent
Dohds' maturing in 1907 at present price te-
ing the possible amount 10 be realized under
diherent rates of taxation in addition to 9
per cent on the capital invested In bonds'
with money worth per cent
On 1900. circulation, being 80 per
an C,rrGlntVv ui GiVVv Dohas per tei.t geN o7o IS
On 100000 circulation TO par of
~ b 6onds. .nd a,d uniform ! per cent tqX.n,.s W9S'
bonTs =, xed 1tl0n sa,, IU w PEI nor
cent, making possible an issue of
$lUwy emergency cirCulata taon, 10 pe
for the time issi,e1 = '.''.',.,,...,, 1885
on 100000 circulation to par of
~ SS'i'S, o u,ito.m III tax OF three-iout' 'il9 200 IS
On 100000 circulation to- 90 per cent of
par of bonds, taxed one,-aXth OF !
Of si6 oG1 r@N.sis fripn1Is lion TO
be taxed at the rate OF or per ...
cent tito t9r 6 the time issued x lVs0'SS
Uniform tax of tIraeerFfhs Ion ~ RI Of per
cent ,.....s,......,..,..,: l,l79,SS
On S|oVVS cirCu5iaton TO w. per ifon Cel{ ~
making pussihle ian issue of $4,000
emergency circulation, to be taxed
i'm, si ln,e % VI per 'e"' i'' '''o 17a SS
In tho foro,oir+, er,,,ros no rroit is calct-
lated as occruing ,,non the emergency cir
crlation
Tho co,,rtrolIor ho,iaros mat tho Ievving
oF . tav of opo-si,tr of I nor cont unon cir
cniation N On nnr cont of tho mar of the
honds and a1loyir, .bo hanks IN issue cur-
rencv to tho nav ~ tho honds NV having a
tav of tho ratio Of . or Q ner cent per an
MN, on tho e>coss I'm. to tho mar when cut
standing will result in the desired increa q
in our gonerol b,nLrote iesnes and pro-
vide a marlked depIeo nf elasticity in our cir
cu1ation
In this copnection tbe cnmntroller savs
be can not nronerlv discuss tbe question of
taxation on hanks. as reIated 10 the nublic
revenues further than IN saw that the impo-
sition of a tax upon the capital and surplus
Of the banks to Offset apy reduction in the
fax on currency will remove any objection
~ his roooror,ondotior IN Tho grounds that
II ~ lessons les tho shsro nf tba nnblic hnrlen
which the hunks should nronerlv hear.
In coneidaring tbe nrohahle effect on the
amount of bont circulation outstanding
,,,hich will -res,,lt from, /, cbanga in rotes of
taxation it must be remembered that the cir
culation would properly include. if it could
be safely made, an estimate of the increased
price of government bonds, which will prob,
ably be incident to a greater demand 70,
these bonds from the banks seeking profit
on circulation under the modified rate of tax
alton.
This increased price OF bonds NAV be such
as to negative to some degree the desired
effect of an, Increased banknote circulation.
culation. It must be remembered however,
that this objection can be made to any
method of increasing the apparent profit on
hanknote circulation Including the method
nr authorizira iss,,es to mar, subject, TO uni
form tax. - :: '"'' -
The eomntroIIer believes that from the
noeeoea 81. Ia ws Altering as suggested the
'a,d ,,,.tbod .trxation of nattonalhant-
ato. ~ inoroaso ~ ~: ieas+ sIoo oon 6oo
uoStto~ASF5 oSIo6toa 81" n
-, - l,,s rosant ho,a soo,,r,,
,'1'a.,. - ,,,11as a,,1S -
=, - eso6.sS aoo 6Sn cStt, ia -
80 -, L,,o ,,,ah ,a,;s Fag,at,
We ,...ss - a,,,,,la.ia,
ipie rs oo1 enn e'"e' ''' VI
II least $oV'VoV'ooV'
summary "i 'pi" views
AS summary OF his views on this subject, I
he comptroller would call attention TO the
propositions: .-.s, 49,.
First-Wlhether. uor not legislation be
oagsed providing for an uncovered emer-
,ency circulation for needed protection from
he disastrous effects of panics. a very much
arger degree of elasticity can be impaired
o our present bond-secured banknote cur
,ency. thus making it of greater use in sea-
,ons of the year in which the demand for
currency is above the, normal and of in
-aluable assistance in times of panic.
second-This result can he obtained nv |
ha enactment into law of the presidents |
that national hanks he al !
owed to issue TO the mar Of the govern
mont bonds denosifed hv them as security
md hv the modification of the nresent tay |
,nnn national ban1ts,as follows.
After determining approximateIy the
owoet rata of .nroft which will call info
irouIotion tha additional. amount Of na |
ional banltnotes deemed necessary for pub
io conyenience this rate of nroft should ha
cached hv lessening or shifting to the !
rorcbise of hanks tho nresent ner cent tax
N circulation In oO ner cent of the mar NJ
h.. e,o,,ernment honds securing II A tax.of
~. nor cont ehouId then he Ievied nm the
vcoes or circnIation over oO ner cent of the
.onds which will maka of such excess cir.
mIatIor a secured emergenrv circulation
49,. - ia IT,. ~ .ooo,o , ,,,h,,o