Mississippi leader. (Jackson, Miss.) 1892-1895, 1892-08-11
\ DOSE FOR DEMOCRACY.
A Page Of History that Should
be Read Carefully and Used
I'm This Campaign.


1t is not generally known what an
invctcrate enemy President Cleveland
was to the money of the people, or
how completely his administration
was ruled by Wall street. Secretary
Manning was, il possible, q greater
foe to an adequate supply of currency
than Hugh Mccullough of detestible
fame. During the four years of Mr..
Clcvelaud's administration, the treas
ury department was subservient
tool of Wall street. The following,
from page 433 of the report of the
Secretary of the Treasury for the year
1888, should DO read carefully and
preserved for use in the present cam
paign:
1t must be remembered that gold
has only been relegated to the second
place in our foreign exchange dealings,
it is not banished nor disqualified. 1t
has not, like silver, become Junctus
o6icio i'm international trade; it is still
the measurer of commercial values,
still the only medium of liquidation
that is equally effective everywhere,
and the danger now is that, instead of
moving in small amounts promptly in
sensitive response, as formerly, to
fluctuations in exchange, it may some
day slide away from us in the masses
under some sudden escape of in
fluepces heretofore concealed from OBJ
servation, and also, perhaps, held in
check by the arbitrage system. If we
are really exposed to such n danger,
we can not begin too soon to prepare
for it, and prudence cOunsels that the
first step should be to protect the
treasury against any possible embar-
rassment.
The $346. 900, 900 of greenbacks are
the weak point in our currency sys-
tenn. The gold coins and certificates
stand first, the national bank notes
next, the silver coins and certificates
third, aud the greenbacks last in the
order of assured value, and it would
be great benefit to the whole mass
of the currency if this, its fraileSt
element, could be eliminated from it.
The present state of things seems
favorable to the substitution of ma
tional bank notes for greenbacks, and
to that end venture to submit for the
consideration of congress the follow
ing measures.
l. Funding in bonds the greenback
debt of $346, 6S1 ,016, or so much of it
as may be presented at the treasury
within limited period of time, say 3
years.
2. The bonds to be issued only to
national banks presenting greenbacks
for that purposes; to bear a low rate of
interest: mot exceeding 21 per cent,
and to mature only upon the failure of
the bank or upon its dissolution,
whether voluntary or upon the expir-
alton of its corporate existence.
8. The bonds so issued to be availa-
BILE only as deposit to secure nation
al bank circulation and to entitle the
banks depositing them to receive cir
eulating notes to the amount of their
face.
4. Existing banks to be required,
for a time at least, to retain on de-
posit the bonds they now have to the
minimum amount required by existing
laws and to use the new bonds only
for procuring additional circulation,
or in substitution for whatever bonds
they may now have on deposit in ex-
cess of the minimum, but the new
bonds to be available for all purposes
by banks organized after the passage
of the act.
S. The national bank redemption
agency ut Washington to be trans
ferred to New York, and sub-agency
to be established, at each central re-
serve city, the notes of all banks,
wherever situated, to be redeemed at
whichever agency they may be pre-
sented.
In support of these measures it may
be said
First. That they provide for the re-
tirement of the greenback circulation
without even temporary contraction
of the currency, because arrangements
can and should be made to issue the
national bank notes Immediately up
on the presentation of the greenbacks
for the purpose of being funded.
Second. That upon the retirement
of these obligations the 100000, 900
of gold held in the treasury as q
special fund for their redemption will
become an available asset and may
be paid out, adding just that much to
the active circulation.
Third. With the greenbacks taken
out of the category of demand obli-
cations of the government, the treas
ury will be in better position than
now to maintain the silver coinage at
par with gold; and, on the other hand,
specie and specie certificates will be
held much more largely by the banks
than they are now, and this will tend
to relieve the strain upon the treas
ury.
Fourth. As the greenbacks will not
be extinguished, but held in a state Of
suspended monetary vitality until the
failure of liquidation of bank re-
quires their use in the redemption of
| it's notes, they will constitute re-
serve fund lying in the treasury ready
for use, at any moment of emergency,
| in the redemption of any portion OF
the national bank currency that may
become discredited.
| Fifth. Assuming that $500. .000, 900
of greenbacks will be eventually fund
/ ed In this way; assuming. that the
bonds bear interest..at the rate of II
per cent. per annum, payable semi
\ n m-