New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-28

necessity. and not as a means OF profit by the
The general Increase in bank circulation desired
oeng possible OF attainment through the lowering
ON the the 80 per per s to
the par of the bonds will not materially interfere
to create an emergency circulation of great value
~, IhirdIAs the use Of redscounts and bills paya-
at certain seasons Of the year Ia regarded as evil
dencing the need of an elastic circulation and as
bearing upon the question of the measure OF rehef
which may be expected from the bond secured
,roer & circulation here Inc
IN bank note circulation as result Of new sg,sina
600 Immediately available. based on bonds securing
the present circulation amounts to more than the
National banks Of the United States outstanding
at any time within the last three years ,o,a
secured emergency Circulation f5n Of $50 10000 be
bSed hs amount Is about double the b entire
National system outstanding within that period
stock Banks Of a England eonG and
comprising all the uncovered bank notes there -,
%y be Is he would
call attention the fact that these entiTe c
are but a small amount more than the SoOVoVtvgy
bond secured emergency circulation viii which 6e %0I
be on Existing SIhE recon-
mended. And with an increase In genera p"1 IN
would SSf probably have bond secured emergency
circulation in this country larger than the Eng
land. Scotland and Ireland which Is secured only
by the general assets Of the banks. without pref
Fourh-Even II special uncovered emergency Hasn Gf
be to be used o on can m the
taxation and Issues Of secured bank notes VIII NJ ~,
money stringency not approaching the severity of
With or without the legislation for the special
uncovered emergency circulation the bond secured
emergency circula ton will be OF great public use
emergency circulation for in times Of pa pa,
subject tines o TAX be 50 10 pe cent bond Secured
gency circulation herein recommended mign r tb be
me issued instead Of at the rate OF per cent
thus allowing its freer use under more normal po
Ganics be- provided the more repressve tax Of 9
per cent seems desirable upon the bond seeureu
sxthNThere is need, under normal conditions end To-
Of LARGE LARGE a m GI n bank note Circulation
The immense volume Of checks drafts ana 9lls t O
anS 5ank credit Currency expands contracts
in accordance with the demand OF trade ana pusl
bS Of the business OF our country is transacted
Ii is extremely elastic and varies IN amount Ia, d.
smpy adequate to the business needs Of the coun
try except in times of disturbed commence anu
seVenth%The issuance of bank asset notes under
Of our banking system cannot be tustihed py inc
plea that without them the NEEDED e Tetbng e4
the Avoidance Of anc s.e at When
suhorized for use in times OF panic they should be
so heavily taxed that they can circulate only wn,,e
panic lasts and Ike clearing house
In seeking the theoretical ADVANTAGES Of hulaity IN
hank circulation we should take no risks with us
solidity.
Among other recommendations the Controner
strongly urges laws authorizing the incorporation
of banks for the purpose Of carrying on lh'erha
tional and ntersolonial banking as distinguished
| from domestic banking. He also recommends laws
authorizing the establishment in small communities
| of National banks with capital Of 5000 mn
He repeats his recommendation Of one year ago
| relative TO a modification Of the law restricting
| loans to any one individual 10 10 per cent OF me
nanital of National bank, and advises the attach-
Ing of a penalty fOr making excessive loans AFTER
| The nresent section is modihed , .,,
,nvestigaton into the development OF all the der-
en banking systems Of the United States curing 'he
| last ten years.