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

with capital of $4,000 IN places not
exceeding 5000 populations. Heretofore
the minimum capital had been $4,000,
and this sum was sufficiently large to
prevent the extension OF banking facili-i
ties to many communities which really
suffered for want of them. Since March
IA. last, the organization of 339 banks
of the class having capital less than
$4,000, in most cases only SIS, 900, has
been approved, and to this extent COM
munities heretofore denied the converts
ences OF national bank have been
supplied.
1t is interesting to note, in passing,
the sections of country in which the
right to organize national banks OF
$4,000 or less than $4,000 capital has
been awaited of. They are as follows.
by states:
Iowa stands first, with forty: then.
follow Texas, thirty-two; Pennsylva-
mia, thirty-one Illinois. twenty nine;
Minnesota, twenty-three; Nebraska
Iand Ohio, nineteen each; Oklahoma,
Kansas. twelve: New York,
Indiana and North Dakota, eleven
each; Indian Territory. ten; New Jer-
sey. six: Virginia, North Carolina.
Michigan and Wisconsin, five each:
Maryland, Kentucky and Missouri, four
each; West Virginia, South Dakota,
Colorado and Washington, three each;3
Maine. Florida, Louisiana. Tennessee,
Montana. Wyoming. Oregon and Cali
ifornia, TWO each; and New Hampshire.
Connecticut, Delaware, south Carolina,
Georgia. Mississippi, New Mexico and
Idaho. one each.
Theswi1e distribution shown. and the
fact that these smaller organizations
I.are not permitted in towns or villages
Ioi' over 5000 inhabitants, Indicates
clearly enough the appreciation of the
! people in these smaller communities Of
1.-the facilities which this feature of the
TACT enables them to enjoy.
II In urging that bank currency is bet
tier than paper, Secretary Gage says in
ipart:
4 But ii is alleged that the while prin-
iciple Is wrong, that no bank ought to
be allowed TO issue circulating notes
3under any conditions or circumstances,
THAT the government and the govern
1 rnsnt alone should issue the paper
jtlloney and to an amount adequate
afor the needs of the people, That allie
CATION can not be taken up and dis
icusssd at length here. To those who
Ahald the theory that paper money may
be made by printing upon certain sized
ipieeess of paper a declaration in the ma
ftureof fiat which shall have all the
power and efficiency of coined money il
Lis idle to address enlargement upnnt the
tsubiect. They are irretrievaby in the
lsclouds: but to those who comprehend
Ithata promise to pay means a promise
ITO pay. and 10 pay money. ii may be
Hpointed out. indeed il has: been clearly
Epoirted out time and time again. that
4 the public treasury is a poor agency for
Issuing paper money. The only way for
I the government TO gel out its paper
notes is to pay them out for debts or
flor expenses. which simply changes the
i form of the debt without paying it at
a'aN. Nor has the government any as
Issets except to redeem its outstanding
lsobligations of a demand character.
This is Fundamental objection to an
tissue of paper. money by the govern
/ ment. 1T is, of course. true that well
within the needs nf thecountry for pa :
3per money circulation the government
can keep afioat a volume of its de-
Inland obligations clothed With the pow
er Of legal tender: but even SO. as a
consequence c1llparrassments have
arisen perturbations in government
4 finances have been occasioned. public
lalarms been felt. and serious disturb
slances from Tins toStinle experienced il
3 general business affairs. A bank. or
1.-THE other hand. issuing notes. whethe,
i secured By a deposit OF government
& bonds or otherwise. II worthy of the
G 4 ~.
9lisisting of claims on the community
si.conversible into money. besides its cash
reserve. With which to redeemsits notes
u or 70 pay is depositors.
4 The business public and the more
ltilonghtflil students Of the question
a turnout the land. congratulate them
selves that the outstanding demand oh
s1igations OF the government are M
greater in amount than they are. ane
will NOT willingly consent that the vol
une should be enlarged
Il. Secretary Gage declares that govern.
inert bonds are not a proper basis fol
~ bank currency say wing:
II 1t is claimed by the opposition tina
ii the act of congress, of March 18th wa
/ pufposely designed To perDetuate til,
81 public debt In order TO furnish donation
y al Drinks ines security necessary Tor then
| Ia continue their nefarious practice o
! linots-issS1ing. Such a conclusion Is al
assumption pure and simple. There !
/, no need In the naturesof things for con
#Etiuling the public debt to furnish tn
y basis fc,; a proper ample and Wellsf.
lsEcured system of paper money. No 9th
i Ter country except the tinted States ha
!. such a system. and looking backward t
s a period prior 10 the civil war We fin
/. in what is called the New England sys
item of banking, in thatof Indiana low
edand other states, safe models for the flu
6 ture, should the present public debt b
t fully paid.
1t ought tobe further pointed out tina
. hin the refunding act of March IA. wficl
3 provided for thirty year bonds To be is
t sued At the rate of 2 per cent per an
i mum. and exchanged for the present
4 and . per cent Outstanding bondsof tn
q tslfnited States maturing on or befor
= 1908 power Was given to the secretar
; of the treasury To suspend at any tim
ri the operations of the act. There were O
4 March IA last Outstanding and maturin
lin the years1904 1907 and 1908, a total q
a 1888, 100000 of such bonds. OF thes
: S32I GOO have already been taken
o by the government. cancelled and pc
: cent bonds To an equal amount issued i