The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-05-19

until the United States put tax of 10
| per cent upon their circulation to drive
| them out and TO force the people to ac-
/ cept the national banking system
I mention these things in order that
! you may see that our national bank notes
are not the only currency that has been
safe and acceptable in this country. ana
that If 1t could be done then. with our
wider experience and better opportunity
We should be able to do it now There
is no reason why a government should
remain in debt forever in order that the
people might have bank note money.
And when the revenue is sufficient and
the bonds mature the nation will require
US to pay off that debt And when the
bonds are paid off and retired what will
you put up rs security for these notes?
II the law should authorize you TO put
up railroad bonds and should designate
particular railroad whose bonds would
be acceptable. those bonds Will immedi-
ately go TO a premium and the bonds of
the other roads that are not so designated
will go below part In the market
If the government should designate a
character of city, county or state bonds
that might be accepted az security those
bonds win go TO a premium and all other
like bonds will suffer discount of some
kind.
How does ii come that Canada is able tn
keep its bank note circulation at par
without any bonds securing its notes,
and without any requirements other than
that a certain amount OF reserve shall
always be on hand for the purpose of re-
demption and that they shall pay on de-
mand when the notes are presented2
How does it come that in Scotland banks
are authorized to issue their own notes
upon their capital, paid up. or may au-
thorize any of its branches TO issue any
specified amount that does not go beyond
the limit Of its capital? There are no
bonds up for those notes: no security for
them. They go at par. and no man in rs
years has ever heard of one of them be-
ing ut a discount, and in all that time
only four banks have failed. Four failed
in Kansas last year.
Ours is not the only system that is sat
isfactory to the business of the world
Yet when we say things Of this kind you
imrnedia tely say we are in favor OF 'as-
set" currency and wildcat currency,
never been any proposition in the bank
ing and currency committee to admit
aything like wildcat" currency for !
moment. There has never been any prop
osition that would permit any bank to 1
issue any more notes than the amount Of 1
its paid up capital. and no bank could 1
get any note to issue unless it obtained |
it from the comptroller of the currency. 1
and he could ascertain then whether the 4
capital was paid up and in actual exist 1
ence or not. as easily as he does it now.
and just as safely.
There is no reason in the world why
government regulation OF national banks
ran not be made that will keep the ma
tioal bank currency safe without keeping
the nation in debt forever in order that
there may be bonds for the purpose Of
putting up behind 1t. applause
The Future-a Problem.
il is a problem for the future. Just ex-
,ctly what the details OF il will be we
nave not yet fairly worked out. We have
been working patiently and faithfully at
[ for years and in the meantime wait
ng for your advice. Sometimes when
are proposed some very eminent
nen in banking talked to you and OPP
1osed it and made ii difficult for rs 70
get a fair consideration when we were
bringing the subject to you. / believe
hat law can be made permitting banks
o issue notes TO the amount of their
aid UP capital. holding the stockholders
% a double liability. requiring the banks
O keep a per cent redemption fund.
ust as they do now. and leaving the tax
4 one-half q one per GENT upon their
REGULATION just as we do now. and out
4 that per cent fund and that one-half
Z per cent tax we VIII b. able 10 pas
he notes of every bank that fails any
ime within the next fifty years. We
ould have paid them with a tax 81 one
lghth Of per cent any time IN The last
orty years. aad why can't Ne do II
gain
This is 70 proposition 70 force u7o1
he country a currency that Il does not
rant or will not accept we VIII not at
frny,t i until the bankers ~ this ccua-
r. agree that Sc Is safe and say that II
safe.
Another measure was before Us last I
-f7ter TIE banks vsre limited IN refir- +
~ their eurrencv 50 that the national
hnks ~ the country were noJ permitted I
L ~ them PIT together. q retire more I
nan & 90 - a month u they had cir !
rlation out and had bonds up ard fhey ,
-e-e losing the premium on the bonds !
~ were able 70 make their loans a; :
sfe- II Interest ina, would ecver fheir r
IS and wanted 70 retire thclr eircata- +