The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-12-02

clause in the act The operation of the
provso, however, is such as to seriously
hamper those banks which, by their 10
cation, cannot use TO advantage notes of
greater denomination than 50. The ratio
which the aggregate of s. notes outstand-
ing on Oct. 81, 1901, bore TO the total issue
Of national bank circulation was about 10
per cent, having decreased from 3l.2 per
cent. on March 13. 1900, the day before the
passage Of the act.
Among other recommendations the con-
troller renews those Of his predecessors re-
lating 70 the question of loans to officers
and directors, excessive loans, and the adj
visibility of changing the method OF COM
penseting national bank examiners from
the present fee system 10 a regular sal
airy.
In commenting on the present system Of
subtreasuries the controller calls atten-
ton to the disadvantages and derange-
ments its operations cause in our financial
matters, and says: There could be no
better illustration of this than its opera
tons in the last few months. The result
has been TO needleSSly lock up and take out
of circulate ton vast sums of money just al
a time when ii was badly needed for NOV
ing crops and transacting the regular bust
by the purchase OF bonds by the secretary
of the treasury only partially and tenn
porarily meets the difficulty and repairs
the damage done. The mistake of main
tanning this system after the business of
the government and the country has long
outgrown it should be corrected and the
business community be given relief from its
operation in taking money out OF circula-
tfon when most needed If the secretary
of the treasury is given authority so thdts
he can arrange to have more money col
lected by the government deposited with
the national banks and kept there until
needed, ii can be done under such regula-
tions. restrictions and supervision as TO in
sure the government against loss and give
relief from the present system
THE GOLD STANDARD.
20 the oriticiSro which heer
made of the act of March A. 1900 to the
effect that it does not properly safeguard
the gold standard, but leaves it possible
for the secretary of the treasury to practi-
cally undo the effect of the act by depart
mental action and regulation without fur
Their legislation, the controller says:
IF the act can be made stronger by
amendments and the gold standard of value
rendered more secure from any future un-
certainty, ii should be done without any
delay, while the question is still upper
by the great number Of new questions
being urged as subjects for action by Con-
gress.
''Since the passage of the act of March IA,
1900 the total amount of circulation which
all the national banks have outstanding
has been increased from s254, 026, go TO $685.
S32. 715, an increase of S1O5, ,2S0, or over Al
per cent.
The provisions of the act have also added
somewhat 10 the elasticity of the national
bank currency. It. however, leaves much
to be desired in the way of elasticity, the
lack of which is the greatest fault of our
national bank issues.
Congress has already had under discus
sion and consideration various measures
for the modification of the national bank
currency. There is much discussion of the
subject by bankers and hnanciers, and
many plans are urged for adoption. Some
where between the views Of the ardent ad-
vOcates of asset currency and those who
oppose il with vehemence as unsafe and
unsound in every respect, there should be
found safe middle ground. Most of the
more enlightened countries or the world
and those which have the most satisfac-
tory banking systems have some kind of
asset banking currency. We should be able
to incorporate some features OF this kind
with our national bank currency in such
a way to in no way impair it's safety,
but add to its efficiency and usefulness in
other respects. Under proper laws asset
genCy circulation for which there Is a
pressing need not now supplied by our ma
tional banks, and people become
more used to it and see it's good points the
use may be extended. Progress in this
direction should be and will have to be
bank notes and the fact that no one ever
looks at a note to see by what bank il is
issued, has popularized them with our peo-
pie, and there will always be a strong SEN
timent in favor OF letting we'll enough alone
when it comes to changing our bank notes.
This question is. however, becoming
pressing and immediate In the near future
il will have to be determined by Congress
what shall be done with the national banks
and their circulating notes, and what
kinds Of paper currency now in circula-
tion -