Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-12-13

By eliminating the words secured by
United States bonds deposited with
the treasurer of the United States
from national bank notes now author
lied, the additional currency would be
identical in form with that based up
on a deposit of bonds, and its pres
ence would not alarm, for it would not
be known. No new and distinct or I'M
guaranteed form of money should be
injected into our system. The tax
would be ample, and more than am
pie, to cover the risk to the govern
ment in guaranteeing redemption.
Manifestly, this additional currency
would not spring into being until inter
est rates exceeded G per cent, and it
would as promptly retire when rates
became normal. Under these or any
similar provisions 10 per cent money
would be well nigh Impossible, and
the treasury department would be
saved a most embarrassing responsi-
bility. This may not be the only
means of adding an element of elias
ITCHY to our currency system, the
need of which is universally recog-
nized. | suggest it as the plan which
to my mind seems most feasible, and
one fraught with no danger.
Trust Companies.
I'm my report of one year ago l
called attention to the large increase
in the number of trust companies and
the extraordinary growth of deposits
therein. Few states require trust
companies to carry any reserve what
ever. Some of these institutions car
ry none, and few of them carry much.
They are permitted by law to engage
in well-nigh every kind of legitimate
business appropriate to private citi-
Zens or corporations. Many of them
are convenient adjuncts of national
banks, and some, fear. are occasion
ally used as a means to encroach up
! on the reserve contemplated by stat
ute l repeat some observations !
made on the subject one year ago;
III is manifest that these institu-
items in our grea, cities, helpful as
they have been to American develop
ment and commerce, unless conserya-
lively managed, may become an ele-
ment of danger 20 our financial sys-
TEN. They are already national in
-, character, and several of them are of
international influence | suggest the
, propriety, therefore, of a law giving
= trust companies Of large capitalization
in large cities the privilege of incor-
porating under federal law, with cor
responding supervision. If such right
were extended, the more conservative
would probably avail themselves there
of, and this would compel others to
cultivate conservatism. 1t would not
+ be necessary to extend to them the
distinctive prerogatives of national
banks beyond the capacity of being
designated financial agents of the
government, thereby justifying feder-
al Jurisdiction; nor should they be
brought into competition with com
mercial banks, but they should be re.
CURED to keep an appropriate, though
relatively small reserve within their
own vaults, lest in times of financial
distress their large deposits with ma
,ronal banks increase, rather than d.
minish, the evils of financial panics.
/ Receipts and Expenditures.
! The revenues of the government
from all sources for the fiscal year
ended June 30, 1905, were:
Customs -. ......... 1921 ,79s, 1861
Internal revenue ...... 234.Os5.7 40.s5
Revenues Of District Of
Columbia 49,. 49,. 5.s43,257.47
Sales Of public lands. 4.s59.249.SO
Profits on coinage, bull