The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1906-01-26

value, and none but the most prosper
Gus business concerns can afford to
pay the price. The business men of
this nation are leading the world in
business activity and they are entitled
to yolHme of money equal to the
legitimate demands OF their business
undertakings.
What are the water ways and trans
portation worth to a world of COM
merce unless we have the banking IA
cility to make use of them?
What are our millions of tons of
phosphate rock worth in renewing our
soil, unless we have the money to
move them?
What of the cattle on a thousand
hills, if the banker cannot furnish the
money to fatten and market them?
As a nation are we to continue the
dependence of commerce on a few
money centers, already groaning I'M
der the burden?
| say no! Let us as a government
of the people and by the people and
for the people muster the courage
within us to action. Let our repre-
sentatives at the National Capital
take immediate action and create a
Department" through whose author
ity the banking machinery of the ma
ton can conduct the nations COM
MERGE.
This can be done in the plan sug-
gested, and in extending to the banks
throughout the country the authority
to place notes and securities to the
amount of their capital up to 100000
If necessary, and issue circulation
against such deposits, the money is
distributed where it is needed, and by
limiting the amount to 100000 of the
capital stock of any bank it would
prevent large issues by the large city
banks, and hence the interior banks
would look to their own issue.
There would be conversions of
State banks and trust companies into
national banks and the number of ma
tional banks, 5,757, now in existence
would be greatly increased, so that I'M
increased by six months loans for the
fall and winter seasons, very readily,
more or less, as the bus
mess of the country might demand.
The tax charged on this circulation
being A per cent per annum on first
six months and per cent per annum
on renewals, would guarantee the re-
tirement of all notes as the demand
lightened, and thus adding the element
Of elasticity to our currency system.
The tax derived by the department
under this plan would probably be, on
first years business, say $200,000,0 900
at per cent per annum for fall and
winter use, $4,000,000; and $50,000,000,
spring and summer months, at 4 per
cent per annum, S1,000,000 making
IS 100000, more or less, to cover ex-
penses and losses of this department.
The Hon. Arthur l.. Bates, M. c.,
from Pennsylvania, would have the
insure, under an assess
ment PLAN all the deposits in national
banks, and he seems to be of the
opinion that a fund of $6,000,000
would be ample to take care of the
losses of all deposits in the national
hon1y Fol ip IL,
this; but that the tax derived from
under the plan above sug-
gested will more than cover expenses
and any possible loss on notes of ma
tional banks, secured by the deposit of
there is no doubt.
This plan, approved by the Congress
and the President of the United
States will bring forth orders for bank
plates and issues printed for the ma
-ional banking associations, from S25,.
300 to 100000 each, to be held by
the department subject to the de
nands of the nations commerce,
which could be shipped to the banks
'A ChIptA1 upOu lCCCtpI VI inc Dduh d
note and collateral, and the interior
banks would thus be furnished cur
rency shipments at a much reduced
rate, as unsigned currency can be
shipped to the South at about so cents
per thousand, and the remotest Cali
,ornia bank can be reached for prob
blV 81 On nor. tboucapd
The matter of transmitting the
banks note and collateral to the de-
)artment would be the same as trans
hitting commercial notes to New
York, namely-by mail endorsing by
rubber stamp PAY to the order of the
Secretary of the Banking and Curren-
~ Department" which, if lost in the
nails, would be worthless, and dupli-
,ates could be issued for such items,
IS is now done.
mn