Barre evening telegram. (Barre, Vt.) 1898-19??, 1902-12-01

uohsic a..on At state bankeres- 3 loc a
Ions Held during the year and Also b,
.,' "s sn.i',can BANKERS association at Il,
meeting held In New Orleans durinr ~
second week OF last November. Al mar,
u tne state conventions resolutions in on
p"sN"n To branch hanks were adnn, ~,
ina subject AZ we'll as asset c,Irrsno,
was CAR" 'i'$, considered 1T the America ;
bankers association, but was referred r.
spre'u! coii.'niisee for report at SONS
| future date. @~'"s
The most serious objection which h.s
been urged against the national hank c,r'
| eency ID It's lack Of elasticity: that II Jne.
not automatically respond to thu dam nd
OF business bu. is dependent upon The
price OF bonds and other consid era lions
me nrst requirement OF any currency is
satsty and uniformity in value. Our ha - !
notes have been from the nrst issue nro",
tlcally perfect In this respect. No NOT.
nolder mas ever lost a dollar excsnt h.,
loss or destruction Of the notes which
nave always circulated at their face value
IN an parts Of the United States, being
USED without discrimination for payments
OF an KINDS the same as the legal tend r
ana treaseury notes and other forms Of
paper currency
All oahk note circulation 10 asset cur
roncy ana depends for It's value upon tho
assets or the issuing bank In most coun-
snes the banks are allowed to keen the
assets maintaining csrta i, reserv. in
CON ana using the ren'aini,ifey l. ans or
IN any other way Our NJ .io,ai Ial1s ar.
required 10 use their as5c;s 20 tha fr'
amount OF the circulation i4,u.,.l in th
purchase or bonds to be deposited with
the treasurer OF the United States. This
requires an amount Of assets in cxcc-J cc
the circulation received. 1t makes very
SAFE circulation, but is 4 very wastefil
use or the assets. The rssuitinS notes
h.a ,,tr
cient and satisfactory circulation. but IN
tneir safety and uniformity in value.
IL III addition to the amount of notes
.Hey are now allowed to issue by law on
ponds deposited in the treasury the ma =
tional banks were allowed to issue an ad
eltlonal amount of uncovered notes be-
einnlng with 20 per cent and gradually
increasing to 80 per cent 1t would make
the circulation more expansible A grad
uated tax on the amount issued. Joined
win ample provisions for their redemp-
ton ana return to the issuing bank. would
result IN the necessary contra elton whe,
the circulation became redundant and
the notes not needed in business TT.
saIety or the notes can be made absolute
oy a reserve fund raised by a very small
TAX. During the almost forty years the
national banking system has been in ex-
istence the total amount Of the notes of
tho banks which have failed, outstanding
AZ the time of their failure. has been less
than wi 100000. During this same period
the banks have paid in taxes on circula-
tion above $S0OOO,Oo0 or four and a half
tunes as much as would have been re-
CURED to pay all these notes IL the bonds
had not done 20. IL there had been out
standing the full 50 per cent Of unoov-
cred notes suggested above. or SO, 900, 0OO
ABOVE those covered by the bonds, the
taxes which have been paid would have
been nine times the amount required to
pay them II. as would of course have beer.
tho case. the bonds had paid for the COW
cred notes.
The comptroller therefore calls the at
tentton OF congress to this subject. asks
its careful consideration and strongly rec
ommsnds the passage Of an act embody-
ing the main features here outlined.