ravated in every feature. The obligations
necessary to fund this indebtedness would not equal in amount those
from which we have been relieved since 1884 by anticipation and payment
beyond the requirements of the sinking fund out of our surplus revenues.

The currency withdrawn by the retirement of the United States notes and
Treasury notes, amounting to probably less than $486,000,000, might be
supplied by such gold as would be used on their retirement or by an
increase in the circulation of our national banks. Though the aggregate
capital of those now in existence amounts to more than $664,000,000,
their outstanding circulation based on bond security amounts to only
about $190,000,000. They are authorized to issue notes amounting to 90
per cent of the bonds deposited to secure their circulation, but in no
event beyond the amount of their capital stock, and they are obliged to
pay 1 per cent tax on the circulation they issue.

I think they should be allowed to issue circulation equal to the par
value of the bonds they deposit to secure it, and that the tax on their
circulation should be reduced to one-fourth of 1 per cent, which would
undoubtedly meet all the expense the Government incurs on their account.
In addition they should be allowed to substitute or deposit in lieu of
the bonds now required as security for their circulation those which
would be issued for the purpose of retiring the United States notes and
Treasury notes.

The banks already existing, if they desired to avail themselves of the
provisions of law thus modified, could issue circulation, in addition to
that already outstanding, amounting to $478,000,000, which would nearly
or quite equal the currency proposed to be canceled. At any rate, I
should confidently expect to see the existing national banks or others
to be organized avail themselves of the proposed encouragements to issue
circulation and promptly fill any vacuum and supply every currency need.

It has always seemed to me that the provisions of law regarding the
capital of national banks, which operate as a limitation to their
location, fail to make proper compensation for the suppression of State
banks, which came near to the people in all sections of the country and
readily furnished them with banking accommodations and facilities. Any
inconvenience or embarrassment arising from these restrictions on the
location of national banks might well be remedied by better adapting
the present sy