The Atlanta constitution., 1901-12-09
Hoods y0rsdpdriii0
Promises to cure and keeps the
promise Begin treatment with
Hoods today.

bank notes. their volume is practically
limited and controlled by the market
price of United States bonds This Is SO
because bankers will not, any more than
other men. assume responsibility or risk
without material motive. and the present
as well as the prospective price OF
United states bonds robs banks of any
motive for the issue of bank notes.
''If the present volume of paper money
is no more than adequate TO the present
population and to current domestic trade.
IL is evident that timely provision must
be made for "A possible increase to meet
the enlarging requirements or larger
population and increasing trade.
Il want to refer to the greenbacks and
the des rability of relieving the treasury
from the responsibility which attaches
to their redemption. This responsibility
II has been, however heavy burden
in the past. and may become In the
future "A source of public anxiety ana
financial embarrassment To tile govern,
ment. Thoughtful men of affairs and
financierS have long argued Tor the re-
funding of these notes into time Obiga-
tons. but such arguments have failed
to convince the people of the proprlety
of canceling a debt bearing no interest
charged with the burden OF interest. II,
however, in a modification of the law
relating TO bank currency the burden OF
redemption can equitably be transferred
from the treasury to the banks, with
out interest cost to the government. then
the objection to their ret rement can no
longer be urged. That this result can be
attained there is substantial ground for
believing
Modification of Banking Act.
'.The following notifications of the na-
tionaI banking act are suggested for
the consideration of those who feel re-
sponsfbiHty in the matter.
.'That any national banking association
which shall deposit 30 per cent OF It's
capital in the form Of United States
bonds at their par value, and 20 per
tender notes. with the treasurer OF the
United States as security therefor. snail
be entitled to issue its circulating notes
to an amount equal to its paid-in and
unimpaired capital. In addition to the
deposit of security so required. banks
permitted to issue notes as above shall
the United States. in trust, an amount
equal to one-eighth Of ] per cent on
their capital stocks respectiVeiy, snfn ,tt !.
fund for the protection of the note Of
any bank which by reason Of insolvency
shall become unable t. pay It's notes on
"If / am not mistoken. it would lead
to an important t0ctease ln the Capittl
OF he national bans 9S'F ss 5o t9sa o55 Tbcy TP
have a surplus and undivided earnings
fund of $i3o,000.90 the largest part or
which could be put into the form of CAPT
tai with the moderate advantage az
forded under the law 50 amended. a
movement toward reorganization unuef
the national ACi WONl4 take listtt III
banks now doing business under state
An Increase of Capital.
TT IS safe. | think to estimate that
within three years the total capital OF
the national banks would increase from
the present amount of 1868. 100000 to
81. 10000, 600. With the right TO issue
circulating notes TO par of their capital
there would be the possibility of increas-
ing the paper money supply, as popula-
tion Increased by the difference IN
amount between present supply tgreen-
backs and bank notes both lncluded) or;
saw seven hundred and six millions ana
! one thouSand millions, or. In round
amount three hundred millions. When
the banking capital reached thouSand
/ millions there would be ted up IN the
treasury three hundred millions I'm bonds.
and two hundred millions in greenbanks.
/ as security for an equal amouat OF bank
/ would follow: some sixty millions in
/ United States bonds now imprisoned as
/ security would be gradually released for
/ sale I'm the general market to the ad-
vantage of the private Investor The
4 impOuuding Of the greenhacks as securi-
" for the bank notes would relieve the
( government from all the burden now
/ Incident 70 their redemption to the ex-
! tent of two hundred millions. For the
/ balance Of one hundred and forty-SiX
/ millions in legal tender notes which
1 would then be outstanding the one hun
] dred and fifty millions in gold now held
/ as a special redemption fund would be
excessive. If this were reduced to one
/ hundred and forty-six millions. the
I greenba clSs would become virtuIly wha1
they ought to be in reality-gold certtl
1 Gates.
ON my opinion. the obligation of the
| government to nay the notes OF iuSolvent
/ banks should be rescnded. Fidelity il
| the discharge of its duty rs trustee
| should be the end of it's respOns sibiity."
! Don't forget 70 use little PRICKLY ASH
BITTERS whenever the stomach bowels ar
I dsordered II quickly corrects such trouble
| and makes YOU feel bright and cheerful.