Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1903-10-22
HOW DIS TRI BU TED
Money From Custom Duties and
Revenues Should be Deposit
ed iii Banks for Gem
eraI Use.
EMERGENCY CIRCULATION.

SAN FRANCISCO, Cal, Oct 22.--
The following report Of the special
currency committee appointed at the
last meeting Of the Bankers associa-
tion was read in the convention as
semhled in San Francisco.
To the American Bankers associa.
tiOn.
As instructed by the special cur
rency committee appointed at New
Orleans to investigate and report on
the present currency system Of the
United States, the chairman of this
committee net being ii attendance III
this convention, 1 beg leave TO sub
nit the. following report:
There is at present more real
money in the United States than at
any previous period in our history
Taking the country altogether there
Is no scarcity Of money. including
United States and National bank
notes, TO meet any legitimate demands
Of business. Compared with Sept.
lst a year ago the National banking
circulation has increased $52,S27551.
The general stock Of money in the
United States Sept 1st 1908, was as
follows:
S1,263733, 949 gold coin, including bul-
lion in treasury.
$555, 5,S5S,494 standard silver dollars.
$101,S67,22S subsidiary silver.
$l7.9TO. 900 treasury notes of 1880
s346,6S1.016 United States notes,
s4lS,5S7,9 ,975 National bank notes.
Total, s2,7os.sss,662.
At the same date there was in cir
culation s62O,375,159 gold coin; 1884,
155,919 gold certificates; $I2,959,9l2
standard silver dollars; s455,92S,SS4
silver certificates; $92,S70,952 subsid-
iary silver; sl7,S5O,254 treasury notes
of 1890; $S35,s77.56S United States
notes. $399,SS4,93O National bank
notes. Total s2,3SS,90 IFS. making a
circulation per capita of $3.50, com
pared with s2S.55 Sept. lst, 1902
In the opinion Of your committee
the most serious need Is the reform
of the subtreasury system in such
wise that the money withdrawn from
the banks for custom duties, as we'll
as internal revenues, shall be deposit
ed in the banks and thus be made
available for use IN the community
from which ii has been Withdrawn.
such a reform could be inaugurated by
giving to the secretary Of the treas
ury discretionary authority to per-
init deposits to the extent of 80 per
cent of the capital and surplus Of Ma
tional banks OF customs receipts as
well as internal revenue receipts
guaranteed by securities acceptable
to the secretary Of the treasury.
Such an arrangement would render
impossible the embarrassments which
have frequently occurred as the re-
suit of treasury accumulalons.
Regarding the question OF circula.
tion, tine first and most important re.
qlirement il the immediate repeal
OF lhe present limitations OF $4,000.
600 per month upon the withdrawal
or circulation, SO that the expansion
and contraction will be automatic and
governed by the surrounding situa-
tions Under the present restrictions
many banks are unwilling to issue
currency ior temporary and legitimate
needs, which they woud Issue II they
felt certain that their currency
could be retired when no longer need
ed.
Emergency circulation could, within
careful limitations, be safely permit
ted upon the actual deposit with the
treasury department OF securities ac-
ceptable to the secretary Of the treas
ury. And upon such uePo A
tion could be issued promptly to meet
actual emergencies, which would not
be possible If time were taken for
the examination Of general assets by
the secretary Of the treasury and
comptroller Of the currency A tax
Of 6 per cent per annum should be