Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-10-15

crop and inferior quality of the tobacco
crop Interest now centers in the con-
stitutional convention which conNenes
early in November. and merchants are
awaiting the establishment of a per- /
manent form of government before en- |
tering on new business enterprises.
Jobbers sell on close credit and seek
few new customers. The recent cleo
ton to rhe8 constitutional convention re- /
suited in the choice of a large majority
of naiionalists and republicans who
favor independence.
CAGES LETTER ON NATIONAL BANKS.
The letter of Secretary Gage OF the
national treasury which is given TO tbs
Public today. furnishes Information I'M
regard to- our national banking system
Eof great value to those Whoss, Votes at
the next election will be influenced by
the money question. His letter makes
Iclear5 several important facts.
| ~. The national bank act of 1865 Was
mot passed at the sinstisation of bankers
| but was bitterly opposed by them, X
grew out of the necessitiesgof the gov
lernment, which VAS spending $1,000, oOO
lper day to suppress a rebellion.
(2l. 1t Was to compel the banks TO be-
leone buyers of government bonds in
1 order To avoid, if possible the further
tissue of greenbacksl and 10 stop tbs rap
lid decline Of the governments credit
tS) BY the act the banks which had
+ I, of
lcountry, were taxed 10 per cent per am
mum, upon their note issues. This TAX
WAS prohiibtive. This prehibitive tax
Operated TO eNtinguish. in a short period
iof time 40 millions of bank notes then
lin circulation among the people, the is
! sues of banks organized under state
ilaws'
l4) National banks could issue notes
| only after having deposited United
States bonds With the treasurer and
l,henaon,y 10 90 per cent Of the par value
lof the bonds deposited. AT tine present
Istime the bonded debt of the United
Estates amounts in round numbers 10 IL
1000 miliens or this total, s33e00o. 600 is
nov owned by the national banks All
1.-The other banks of the country toutsde
of savings banks and loan and trust
Icoinpanies,) own only SS.OHU,0oO. Repeal
1.-THE national banking act and there
WOULD be no seic!al fno'lSe lo or lht7 ha &
t1ieila1 paliks 70 epIlttiius liisest "
menus IN Y hiiisu '9's,7ss ny
would natural ~ y pose o. ;ttasli h''id
IEings, Of. large proportion thereof
What they would thus sell would be
Iadded TO the market supply. with a s'eri-
.ously depressing influence upon the
lsprice Of securities.
90, This act thus $acfealeas speciaa1
lslnarket and a speclals dsnia no Tor tte
4 s5ssNernlneiits Gept optisatlpiia. a na en-
4 apled the ltnllsd states 70 #fals- mn
i mems war funass Whlch possibly 5eonia
4 not ma We speeIl ralsea ~ any .o1h 'i Way:
4 W. NOT Only has#it iofesn. y market
i LOT government ponas DNls5lt mas en-
4 5as'iea me government 70 optalii a tsois
/ faNofaple rate OF !hfere 81 eli its SGtsot
than II might otslsrWise nave obtained.
.,l- ne note ISSUING i,iiNilfse n . iisiN-
i ef psen g Iislitico4altS va a''!t12 or ana
4 less' tilanS ot1a-tilird OF the banks Of thf.
4 country have awaited themselves Of the
4 niis.ilests' 'a1aof the ilatona bank act.
i NJ the present. tllne there are more than
i i2sDvo banks and Ebanking institutions.
I-exel.tsiNe Of savings, l banks |, is'a stlik-
5llng fact IN At on 3.sa3 Of these irs'tiiu-
4 tons hase aNailed themselves Of the
4 9llSiiieg es OF the. national banking act.
4 the others, more than 5000 m number,
pref s'rnlng 10 operate unssr The sans
items OF state authority. even If they
4 tGrego all the privileges of note issue.
4 siiisos q year q ter the Vas pa $3.50,
@!lSgoo inililenS q circulating notes had
Y hsefl ls'uea, While the bank naN;ly 5cr-
4 gained un1er the law We're entitled 10
4 "a circulation OF 9s lllionsdoiars. And
so II mas been from that day to8this. The
Il banks as q Whole haNs never availet!
q liieir' s'siVes 81 more than 80 or 60 per
4 cent OF their notes. issuing privileges.
Il Alafch l4th last, tht. date of the apprSv-
Il 81 the new financial law. the national
banks OF the#linited states We're entitled
& 10 bank note circulation of SGD 100000
4 on that day the amount Of notes actual-
outstanding Was only SIG 100000
Il f4aii1lytif the popular. impression that
3isnete issuing Is an exceedingly profitable
Il thlng we're true banks would have
aSaa!ed themselves Of ii TO the fullest
extent
81 While il Was an act Of necessity
"a dtlin our civil War, 10 nlakesollt bonds
]; basis fer note circulation. they are MOI
proper basis for bank currency In
times OF peace.