The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-12-27

ness winch cannot be conducted without
having at all umes the ability TO comply
promptly with its obligations. Its opera
tons necessarily affect, benefcially or
Otherwise the private financial affairs Of
all the people. and they have right to be
assured by appropriate legislation that their
confidence in the integrity and power OF
the government has not been misplaced.
The recent repeal Of so much of the act
OF July IA, 1880 as required the secretary
or the treasury TO purchase silver bullion
and issue treasury notes in payment for
it, makes such a radical change in the
policy or the government respecting the
currency of the country that until its
consider it advisable TO recommend further
special legislation upon that subject
Money i'm Circulation.
AS already shown in this report, the
amount of money in the country, outside
of the treasury, on the 1st day OF Deem
Der, 1893. was SIP. 4O4,9i7 sleater than the
amount outstanding on Il Q st day of No
vember, 1892 This vast Increase in the
volume of outstanding currency, notwith-
standing the enormous exports Of gold dur
ing the year. is the result of several causes,
among which may be mentioned the issue
Of treasury notes for the purchase of sill
yer bullion, the excess of public eXpendi-
lures over receipts, the additional circu-
lation called for by the national banks
during the late financial stringency. and
the large imports of gold, which amounted
during the months of July. August, Sep
TENDER and October, 1893 TO the sum of
S55, as, 526. That the amount of money in
the country is greater than is required for
the transaction of the business of the peo-
pie at this time is conclusively shown by
still accommodating in the financial centers
10 such an extent as to constitute a serious
embarrassment to the banks in which IL
is deposited, many Of which are holding
large sums at a loss This excessive ac-
emulation OF currency at particular points
is caused by the fact that there is no such
banks and other institutions to which it
belongs to loan IL to the people at remun-
erative rates. and IL viii continue until
the business of the country has more fully
recovered from the depressing effects of
the recent financial disturbances. Money
does not create business, but business Gre
ates n demand for money, and until there
is such a revival Of Industry and trade as
to require the use Of the circulating me-
dunn now outstanding it would be hazard
Gus TO arbitrarily increase its volume by
law, TO make material changes in its
character BY disturbing in any manner the
relations which its different forms now
bear to each other.
In the meantime. it will be the duty of
all who have power to influence the course
OF events, or 70 assist by legislation or
otherwise in the solution of the grave ques-
lions presented by the altered condition Of
our monetary system, to carefully con-
slider the whole subject in all its aspects,
in order that IL may be permanently dis
posed OF by the adoption of a simple and
comprehensive system, which Will, as far
as possible. relieve the government of the
onerOus obligations now resting upon IL.
an the same time secure for the use
of the people a currency uniform in value
and ADEQUATE in amount The unsatis-
factory condition of the currency legisR-
ton has been for many years the cause
of much discussion and disquietude among
the people. aud although one great dis
turbing element has been removed, there
still remains such Inconsistencies in the
laws and such differences between the
forms and qualities Of the various kinds
of currency i'm use that private business
is sometimes INSTRUCTED. and the treasury
department is constantly embarrassed in
conducting the fiscal operations Of the
government.
Different Kinds of Currency.
There are now I'm circulation nine diff
ferent kinds If currency, all except two
being dependent directly or indirectly upon
the credit of the United States. One stat
ute requires the secretary Of the treasury
to redeem the old legal tender notes in
coin on presentation. and another compels
him to REISSUE them so that, no matter
how often they are redeemed, they are
never actually paid and extinguished. The
act of July 1. 1890. provides that the treas
ury notes issued in payment for silver
bullion, shall be redeemed IN gold or silver
coin, at the discretion of the secretary,
and when so redeemed may be re-iSSued.
But the same act also provides that no
greater or less amount OF such notes shall
be outstanding at any time than the cost
OL
silver dollars coined therefrom, then held
in the treasury, purchased by such notes.
and consequently when these notes are
redeemed with silver coined from the bull
lion purchased under the act, they cannot
be re-issued, but must be retired and can
celed. for otherwise there would be a
greater amount Of notes outstanding than
the cost of the bullion and coined dollars
then held In the treasury" In this man
ner notes to the amount Of 81. 625,9S4 have
been retired and Cancelled since August
last, and standard silver dollars have taken
their places in the circulation. If re-
deemed in gold coin the notes might be
lawfully retired or re-isSued in the dis
erection of the secretary, but the cond-
ton Of the treasury has been, and is now,
such that practically no discretion exists,
and for the reason that the necessities of
the public service and the requirement Of
the coin reserve compel him to Reissue
them, defraying the expenditures Of the
government or in procuring coin to re-
one of the principal difficulties encoun-
tered by the treasury department results
from the indisposition of the public 10 re-
tain standard silver dollars and silver GER
tifcates in circulation. 1t requires con-
slant effort upon the part of the treasury
officials TO prevent the certificates, espe-
cially, from accommodating in the sub-treas-
ury to the exclusion of legal tender cur
easily understood, for, although these GER
tificates are not legal tender in the pay.
ment OF private deots, they are. by the
acts OF 100 anu Isso, mace recels ape ape lot LOT
1892 national banks are authorized to hold
them as part Of their lawful reserves.
Silver Certificates.
With the policy of maintaining equality
in the exchangeable value Of all our cur
rency firmly established, and the further
accumulation of silver arrested there is no
substantial reason why the silver certi-
ficate should not be as favorably received
and as literally treated by the public as
any other form of note in circulation; and
for the purpose of creating a greater de-
mand for their permanent use I'm the daily
transactions Of the people, j have directed
idly as the opportunity is afforded, the
amount of such certificates of denomina-
lions less than $40 shall be increased by
substituting them for larger ones TO be re-
tired, and that the small denominations Of
other kinds of currency shall be retired as
they are received into the treasury and
larger ones substituted in their place.
There are now outstanding United States
legal tender notes TO the amount of $67. 944.-
81 In denominations less than so; treasury
notes issued under the act of 1890 Of de-
nominations less than $40 S64, SIS. 49, and
express authority In the act OF Aug. 4, 1886,
to substitute small silver certificates for
larger ones. and the secretary of the treas
as he may deem proper in the denomina-
lions of the treasury notes, issued under
the act of July Il, $780, but congress, in the
sundry civil appropriation act. approved
March g. 1893, provides that no part Of the
money therein appropriated TO defray the
expenses of the bureau of engraving and
printing should be expended for printing
United States legal tender notes of larger
denomination than those retired or can
celled- As the law now specially desig-
mates the denominations in which national
bank notes shall be issued, that cannot be
changed without further legislation, and
COnGeQuenLlK during