The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-04-13

ual now engaged in business in the
United States.
II this bin is passed silver dollars
viii have no more intrinsic value. so
far as business is concerned. than pine
chips. for they viii be redeemable in
gold. The measure permits national
banks to establish branches, and places
the circulation entirely in their hands.
by allowing them to issue currency
backed by their assets. To do this
they are merely required to deposit
in the United States treasury a sum
equal to 3 per cent of their total is
sue. Even that amount may be in the
form Of interest-bearing United states
bonds.
Should any bank agree to redeem
United States notes to the amount Of %
per cent Of its capital, it is given the
power TO issue currency to the full
amount Of its capital stock. Ten per
cent Of the issue is possible imme-
diately. 10 per cent at the end Of the
first year, and a like amount every
succeeding year for five years. AT the
end Of the sixth year 20 per cent may
be issued, and in seven years the re-
naming 20 per cent. This money viii,
Of course, be loaned to the public at
rates in proportion to the needs of the
borrower, but the bank VIII Ygy for the
privilege of issuing it a small tax,
which goes into a fund to guarantee
the notes.
The total capitalization of the ma
tional banks of the country is $3.50. 0O0.-
COO. Therefore they win Jointly agree
to redeem only $50 000. COO in United
States notes. All the balance is 20 he
Cancelled. And even the $3.50 000. 600
may be withdrawn from circulation
under another provision Of the pro-
posed law. When this has been &C
complished the tax on bank circula-
ton viii be one-quarter of L per cent,
TO be placed in the guarantee fund.
At the present capitalization of $3.50.
0OO,0OO rhis would net the redemption
fund 81, $4,000 yearly. In exchange the
banks viii get. at the low average in
/ terest rate Of Z per cent a total of
| S45, 800 600. In plain language. for their
trouble in assuming entire charge Of
the circulation of money, the Repub-
licans in congress propose to give the
bankers every year close to $4,000, 600.
Truly a handsome gift from the people
to the money lOsnerst If an individual
should hire somebody for a large price
to cut off a perfectly sound leg, he
would promptly be placed in an asylum
/ for the insane. Yet that is exactly
what the Republicans are DESTROYS Of
doing with the country.
The end viii be the retirement Of
every silver dollar and every silver
| certificate, and the issuance and re-
demption of the currency Of the eoun-
/ try viii be entirely at the option of
| the bankers. A more pernicious stat
ute could hardly be conceived. II it
were not true that no form of legaGzed
robbery is too barefaced for Repub-
/ licans to bring to fruition, 1t would
seem beyond belief that the house
could seriously consider the passage of
/ this law. Pregnant Of evil as it is,
there is grave cause to fear that it viii
J pass triumphantly.
/ In the light of its other provisions,
( a small clause in the bill which per
mits the secretary of the treasury to
/ deposit all United States money in
excess Of $4,000. 900 in such national
banks as he may see tit, at a rate of l
per cent per annum. seems trivial.