The times. [volume] (Richmond, Va.) 1890-1903, 1902-01-19

might be the eueCt OF Tree pdlifAliiS'r HcNAiHi
be secured by actual securities deposited
to secure them. and would not depend
on the solvency of the bank issuing them,
although, in addition to the securities de-
posted. the entire capital and surplus or
the bank and OF the trustee would be re-
sponslble for the bonds, as they should be
guaranteed by the bank for whom issued
and the trustee.
Another great advantage of the bonds
would ba the interest bearing feature
currency system looks to the public TAX
ing tho banks obligation to pay without
interest: that is, the banks taking the en-
tire profits.
a national bank note is simply an obll-
cation of the bank for whom issued, Sc
cured by the deposit of government
bonds which is an obligation OF only q
dollar without interest, secured by an
obligation of a dollar. No one to-day Is
compelled to take a bank note In pay
ment of a debt. It is not q legal tender
and is only received at the option OF the
public The bonds would be secured by
securities worth more than a dollar ana
be made redeemable in cash, compelled to
be accepted in payment Of obligations at
every bank in the association.
firmly believe the public will receive
an interest bearing bond secured, as
stated in preference to Il National bank
note.
An able lawyer has expressed his opin-
on that the bonds should not confiic:
with the United States currency laws
How could they? Banks can undoubtedly
issue interest bearing certificates of de
| posit Any bank will cash them to-day
| for customer if satisfied of the solvency
| Of the banks issuing them. The bonds
| issued as currency would be actual bonds
| with liens on actual securities. How
| would the law prevent the banks FROM
| circulating them. Any law that would
| prevent the issuing of the interest beac
| ing bonds would apply to any other bond
| or certificate of deposit Congress woud
| have to frame a special law to prevent
| It. even if it could be done. I don't be-
lieve that you could get majority of
| the representatives of the people to pass
a law that would prevent measure
| that would give relief to the country
| give a reliable medium of exchange and
/ share part of the profit with the people
Lyman ]. Gage. Secretary of the
! Treasury, before the American Bankers
| Association last October. said:
'T believe that our system of bank note
| circulation can be and ought to be 50
| modified as TO make it more responsible
| to commercial and industrial require
| n1ents without an increased risk to the
| bill-holder."
| His recommendation to the present
| session of Congress emphasizes his
! realization OF the need of more elasticity
| to our currency system and would be
| some relief to the situation, but he only
| locks to securing the additional bank
| note circulation by a deposit OF legal ten
| der notes and United States Government
! bonds.
| United States Government bonds and
| legal tender notes are not the only re-
| liable assets OF this country, neither Is
! the United States Government the only
! reliable trustee.
Hon. James II. Eckols. eX-Comptrolier
| OF Currency, before the same convention
! advocated in the strongest manner asset
currency He said:
II say that a note secured By the as
sets of a commercial bank IS as stable
| II, the hands OF the holder thereof, arc:
| is as likely, nay more likely, o. redenp-
| ton than is promise TO pay issued oy
| tre Government of the United States
upon the supposed property Of the citi-
| zens of the United States, which de-
| pends upon the leyyins of taxes, when
! ir turn depends upon the importation u
| goods. and unless there is Importation IF
| goods or internal revenue tax, you can
| not raise the revenue with which TO
/ meet the obligation of the Government
| If the existing banks will not associate
! themselves together anu 'Stttbi7ii w.
(. settle on some present existing trust
company to receive securities and issue
|, bonds against them. then let a company
| owning and controlling banks at various
| points in the country be organized with
| the power of Issuing the one per cent
bonds plan for which can be readily
| outlined
The financial situations are crying out
| for a relief from the present. situa-
| ton. Let them agree on the terms OF the
| oian mapped out reservinS 30 per cent
| of the authorized bond issue for emergen
cies ana you will have no such condl-
| tons as exist to-day.
| The situation is In the hands OF the
financial institutions of this country. Let
| them share part of the profit OF their
| obligation of debt with the public
/ The New York Clearing House certih-
Gates of 1898 are fresh in the memory
| of the public. Insteaed of certificates
! of Clearing House possibly conflicting
with the national bank laws, You have
an actual bank which will conflict with
no laws and which will be received with
confidence by both the banks and the
people.