How To Supply The Needful

After stating that any attejupt to remedy the defect noted must provide a curroney as absolutely safo to the notehokler as the present tlie coiiiptrollci' says: "It is respeetfully suggested that not only as good, but botter resulta would be attainod if the present bank act were amendqd b.v repealing tlie ])rovision thercof requiring each bank as a pre-requisite to entering the System and issuing bank note currency to deposit governinent bonds. In Iieu of hiieh provisión shonld be substituted oue permitting the banks to issue circulatinfr notes against their assets to m amoiint equai to at least 50 per cent. of their unimpaired capital." Tlie eoinptrollor follows this suggostion with the further one lor the inaintoiiance of a safety fimd to be provided by graduatüd taxation upon the outstaiidinn; circulation of the banks until the sanie shall be equal to not less than 5 per cent of tho total of siieh outstanding circulation, this l'und to be held by the government as an agent only and for the purpose of inimediately redeeming the notes of insolvent banks. It is immudiatcly to be replenished out of the assets of the banks on which it shall have a íirst and paramount lien and be exeinpt from assessment to the extent of the doublé liability on the shareholders. ContiiHinig the foinptroller says: "Tho profit upon the issue of circulation to tho banks by such chango would be so auginented that it is giving to them a fl'ancliisc for which it is suggestod they should be called upon to mako propor return to tho general governinent. The return should not, however, be ot such a charactor as to defeat the ends souglit in the privilege giveu. "The currency redemption of the legal tender issues and the treasury issues under the act of 1890, and the reissuing insteadof cancellation of the saiue must always créate distrust of the goverument's credit abroad and at home so long as tho laws now udoii the statuto book remaln unchanged. "The general government ought to bo wholly free from the direct issuing and redeeming of notes to pass as money among tlie people. No government has ever yet succcssfnlly engaged in so doing, and the expe-ience of the govornment of the L'nifi'd Suites has proven no exception to tlie rule. The general cost and loss entftilcd upon the government and the periods of v.ncertainty as to the government's credit and tlie stability of our luonotary systein have been so great as to ïxiake the lo ü tender and creasury issues of 1S1X) one of the extraoritiuary burdens placed lipón the people.