Helena weekly herald. [volume] (Helena, Mont.) 1867-1900, 1888-04-26
WHAT is THE TROUBLE ?
The Currency Stringency---The Cause
and the Remedy.

Sons. bankers and government bond deal
ers, New York, contains features OF inter
est bearing upon the monetary situation
widely recognized by the press and people
of the country. The judgment of the SEN
ior Mr.. Fisk has through the years COM
manded the respect of many thousands of the
capitalistic and investment classes on ques-
tions of finance, the valuation of govern
mental, state, municipal and other securi-
ties, the effect upon our monetary and in
dustrial life of national policies, and other
and important matters with which the
veteran banker for three or more decades
had has to grapple.
The circular recites the decline of securi-
ties, wages, the staple products of labor
iron first of all-and to the captoin ques-
ton, What is the Trouble" answers, The
locking up process of the government
treasury" We quote:
The trouble" is, the depletion of the
life blood of the nation in the loss of its
currency. If some strong combination
should suddenly withdraw even ten mil
lions of currency from active use it would
almost create panic. What is the fact
There is now locked up in the treasury of
the United States nearly two hundred
millions of currency, once in active use.
Let this out, and at once the trouble
will cease.
The President of the United States has
seen fit to raise point about law au-
thorizing the use of the surplus in buying
bonds. under which law already nearly
two hundred millions Of bonds have been
bought, much to the saving of the people.
He asks Congress to re-enact the same law.
While waiting for this, the country suffers.
During the terrible war of the rebellion
the government was compelled to pay six
per cent. on its bonds, in gold, to obtain
money. Then the national banks could
afford to pay the one per cent. tax on
their currency issued. Now, when bonds
will pay at current prices only about
% per cent, the same tax is i'm
posed, and, in consequence, the currency
issued by them has decreased over one
hundred millions, and the whole of this
amount is locked up in the treasury.
Congress should order the administra-
ton to at once invest the surplus in
government bonds; should at once take
the tax from national bank circulation !;
should at once order safe part of the
hundred millions locked up for retired ma
tional bank circulation to also be invested
in government bonds, and the trouble"
as far as caused by the loss of 'life blood
of the nation" would cease at once.
Can the government purchase $25O,OOO,-
600 of its own bonds? We say yes, with
out trouble. There are falling due in 1891,
$3.50 900 900 of Al per cents. These could
nearly all be obtained to save the govern
ment per cent per annum for the time
they have to run. The "fours" could be
obtained in large quantities to save 24 per
cent per annum, and the currency skies"
to save % to q per cent. But, as the 43s
fall due so soon, it would seem the part of
prudence to retire them first.
We insert here for the information of our
customers and correspondents some start
ling figures as to the extent of the with
| drawal of currency from the business OF
| the nation.
The following figures are from the Off
| cial statement of James w. Hyatt, Treas
urer United States, issued March 81, 1888:
| Gross amount. of cash in his hands as
Treasurer, S673, ,15S, 81 50; against which
has been issued in gold, silver and legal
| tender note certificates, 1922, 1896, ,394 90 !;
leaving net money in his hands as Treas
urer. $3.50, ,762, ,977.6O.
Out of this the treasurer has SCI ,231, ),
647.36 lying in the national banks, secured
by deposit with him Of government bonds
OF this vast sum, 100000, 900 is retained
as reserve against the legal tender notes;
S37 .249 253 OS is retained to cover various
appropriation; 500, 1862 Is is the actual
net amount retained to cover redemptions
of national bank notes, leaving S13O,326,
1854 as the actual surplus at that date.
Of this amount $25, ,752, $500 is fractional
silver.
The spirit of all laws of Congress is that
| only $1OO,OOO,OOO shall be kept idle, but
from this statement we see $3.50, 1876, 75S "a
is kept idle, and with the nearly $1OO, O,OOO,-
| 900 also idle awaiting the slow process Of
redeeming national bank notes, we have
grand total of idle money of
upwards of S33O.0O00OO. or suffi-
cient to redeem on a two per cent.
basis all the outstanding Al per cent bonds
due in 1891, and with the additional ac-
| cumulation of surplus up to the end of the
fiscal year June 80, 1S88-say $36, 900
would then leave the $lOO,O0O,OOO re-
serve against legal tenders intact and some
$25 100000 besides.
If the remedy for the "trouble" depends
on congress, it should awake at once.
If the administration refuses to act un-
der laws already on the statute books, and
trouble should come. then they bear the
blame. If, under this law, in good plain
English on the statute books, and under
which, already, by previous administrations,
S1S2. .241, $50 bonds have been purchased,
the present administration refuses to act
in case of need, while awaiting the slow
action of congress, then let the blame rest
where it belongs.
While the government has so large a
debt congress should be very cautious in
reducing revenues. The people do not
complain of, or even feel, the collection Of
the present revenues of the government; /;
but the people do complain that the pres
ent revenues, paid in so cheerfully, should
if too much to run the government, be
locked from use when they could so easily
he used in reducing the debt.
The people OF the United States want
the debt retired and settled as soon as pos
sible. All the evils Detailing the working
men of the Old World come from the enor-
nous public debts. -,
Let ms. as soon as possible, be free from
debt Capital and people from the whole
world will seek our borders, and we shall
become the clearing house OF the wnoie
world.