The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1900-02-13

ny TO refund at a rate not exceeding
say, three per cent per annum, We
cannot hope TO DO In the
matter OF our nnancea what
all other nations, especially Great
Britain, the richest nation In the world,
have failed to do no. she has never
reached n standard aa low aa two per
cent rjr her rational borrowings,
"rhe chief arguments cf the dstln.
gulshed chairman OF the finance COM
mitteo In aupport OF the funding rea.
ture ot th0 bill h haped largely upon
the suppositlon that national banks viii
aid materially In the rcfundlng Of the
| public debt AZ five per cont, that the
provision of the bin allowing national
banks to ISSUE clrculationa up to the
face value OF bonds and that the rcduc.
! ,lun of taN on circulation win be Of
such advantage TO The banks that they
win at once buy the two per cent bonds
and take out circulation ON them
'rhc circulation OF national banks IN
not SO profitable nor the source OF un.
told wealth. as some suppose. Tho cap.
italIEatIon OF national banks on the first
Of December last was about $500, O,5is.sii.
To which may be added the surplus and
undivided profits which W ,uld be- con.
/ yertcd into capital II II would pay to
do So, Ssii, ,Oeo,SSs. making an aggregate
N S96l ,6i6,6sS, while the amount OF ma.
tlonnl bank notes In circulation secured
by bonds was only tsOI0O00OO,
Reducing the tax ON circulation one
half per cent and permitting the issue
ot bank notes M TO the face value OF
two per cent bonds may not be SUM-
cicut induocmcnt 10 the national banks
To largely increase circulation. even II
all the circulation could be- kept out.
standing. a bank with 100000 circula.
| tlon would get $4,000 Income from It's
honda, From this would be deducted
tax. $500. aud expense OF redemption.
! l9i; total SGg5, leaving an annual prof.
+ &, OF N.s55.
w NfAFh WV h'AlNN NAANAAh hNANAAlf WV
per cent. what would be- the result ?
. Under the laws the secretary Of the
treasury would have call for additional
u,nds to secure circulation. This might
happen at time when the bonds could
not raise money In case of pro.
ttactcd war Our bonds might fall even
20 or 30 per cent and this might happen
az tlnie when national banks could
not deposit more bonds to secure note
circulation
This bill makes no provisions and
don't know that any could be made
to meet such emergencies Then
again. securing by legislation. a low
rate Of Interest through profitable in
duCcmcnts 10 national banks may not
In the end be the best thing for the
country. a low rate OF mtercs; would
In the long run tend TO make low prices
Tor commodities. II tn use OF money
can be bought chcaply II may have the
cffcc; to make everything else cheap
am afraid n very low rate of intcrcs,
WOULD tend to reduce wages"
Alter referring to what hc called the
unjust prejudice against national
banks. Senator Elkins closed by say
Ing:
Under present conditions and even
the more favorable one promised In the
hill before the senate. the note clrcun'
ton on national banks may disappear
partly because Il In not profitable now
to the barks and may not be under th'
provisions of this bill and partly be-
cause Of the prejudice and opposition
on the part OF large portion Of people
to national banks issuing currency; but
largely and more than all this. for the
reason there will be no need OF bnnl
note circulation In case the increase OF
certificates against gold deposits In the
treasury should continue, To my mind
gold certificates and silver certificates
under proper limitations are the money
OF the future and the very near future
This would leave 20 the government
the sole power OF issuing money, there-
fore. conclude that II is not needtu'
to ofrer inducements to national banks
/ to take two per cent bonds nor to fund
the public debt before bonds mature
by giving n honus TO national banka
and putting out a bond that cannot be
redeemed under thirty years"