St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-17

The Sherman Silver Purchase
Act-National Currency Notes
Gold Favored for Customs
Duties-As TO Uniform Paper
Currency.
The following is contributed by
leading citizen, who has made the sub
| ject of finance study:
The paper currency of the United
States in actual circulation on July /,
1898, exclusive of gold certificates, was:
Silver certificates. ............S 326, 4S0, 900
| Currency certificates. .-....-... n,933. 900
| Treasury notes of 10 SHERMAN
law ....,.-.... ...-.....-....... 14U,bbl, VI
1reehoacKS. ......---' 49,. .'-...-. 5z@'o'IV0U
Total in round numbers. -. $685., S77, 900
Gold coin in treasury not covered
by certificates outstanding on
July l, '93........-..... ......... S93, 5OO,00o
Revenue from customs, 1892. 800. III 49,, 96I
The following scheme contemplates
the funding of all the aforementioned
paper money and the ultimate absorb
tlon of the national bank currency into
one kind of paper money only, issued
by the government and redeemable in
gold.
scheme.
First The Sherman silver purchase
law to be Immediately and uncondi-
tionally repealed. No more silver GER
tificateS, greenbackS. treasury notes, or
gold certificates to be issued: and as
fast as the same come into the treasury
they are to be cancelled.
Second There shall be forthwith is
sued national currency notes." of de-
nominations of IS and upwards, to an
| amount not exceeding the outstanding
paper money aforesaid, viz: 1896, 100000.
These notes shall be a legal tender, and
receivable by the government for all
dues except customs. They shall be
paid out in place of the said paper
money which may come into the treas
ury, and in exchange for and redemp
ton of the same kind of money.
Such notes may also be issued in pur
chase of or exchange for gold and gold
certificates.
Whenever the accumulated gold in
the treasury shall he equal to One-thIrd
of the amount of the currency notes so
issued as aforesaid, there shall there
after be issued for each additional dol
lar i'll gold which may come into the
treasury three dollars of such treasury
notes; the same to be paid out
for the expenses OF the government and
in the purchase or redemption of out
standing government bonds.
Third-All customs duties shall here
after be paid in gold or gold certificates.
But after the amount of accumulated
gold in the treasury exclusive of gold
covered by outstanding certificates
shall be equal to one-third of the amount
of the currency notes so issued in place
of the paper money as above provided,
the secretary of the treasury may, i'll
his discretion, accept i'll whole or part
payment of such duties the currency
notes herein provided for.
Fourth-After the conversion of the
present paper money Of the United
States into such currency certificates
aforesaid, the total amount of such
notes and redemption bonds herein pro-
vlded for outstanding Shall never at any
time exceed the proportion of three dol
lars in notes and bonds to one dollar in
gold then in the treasury. Nor shall
the total amount of such notes and
bonds ever at any one time exceed the
proportion of S35 for each inhabitant Of
the United States as aScertained by the
latest United States census.
Fifth-Such currency notes shall,
when presented in sums of $50 and
multiples thereof. be redeemable either
in gold coin or in the redemption bonds
herein provided for at the option of the
secretary of the treasury.
SiXth-FOr the purpose of the redemp-
ton of said notes there shall be issued
the redemption bonds" of the United
States of denominations of $50 and null
tiples thereof, bearing semi-annual in
tereSt at the rate of 2 per cent per an
mum, and at all times redeemable, at
the option OF the holder, in said national
currency notes, or payable, at the OPP
ton of the secretary. in gold coin within
forty years from their date.
Seventh-For the purpose of obtaining
gold for the redemption of such bonds
at maturity, should there not be Suf
ficient gold then in the treasury for that
purpose, the secretary is authorized to
purchase gold with bonds to be issued
bearing interest at not more than per
cent. and payable i'll 10 to 40 years from
date.
Eighth-All silver dollars now or
hereafter coined shall be legal tender
in amounts not exceeding $40. and no
more; and the silver bullion now owned
by the government shall be coined into
dollars and subsidiary coins as fast as
required by the business needs of the
country.
Ninth-Such currency notes may be
held as legal reserve by national banks;
and national bank notes may be re-
deemed in the same. But no more ma
tionaI banks shall be chartered; and the
10 per cent tax on state bank circulation
shall remain in force.
NOte-Whatever reductions may be
made in the tariff, it is certain that un-
der this scheme there would be accu-
INFLATED i'll the treasury from customs
duties and the coin already on hand at
least $500, 000, 900 within two years, being
3316 per cent of all the United States
oil, ba
currency into which all this paper
money would thus be converted would
be supported by ID 3315 per cent gold re-
serve actually in the treasury and set
aside for redemption purposes. All
other currency thereafter issued
would be supported by like reserve.
1t is believed that such reserve will
permanently maintain the currency at
par. The right to fund such currency
into Understanding gold bonds would
practically assure this. If so, conf
dence in our currency would be at once
established, and the secretary would
have no difficulty in exchanging cur
rency notes for sufficient amount of
gold to establish the needed reserve in
very short time, much less than two
years: fer with the restoration of con-
fidence comes the unlocking and reap
pearance of the immense amount of
boarded gold now out of circulation.
But to insure the creation of this needed
reserve, to give to the world assurance
that it will be created. the customs rev.
enueS are pledged for that purpose.
Under this scheme it will not be neces-
sary for the government to issue bonds
to buy gold; its Indebtedness will not
be increased; it will pay no interest.
The suspected, half-dishonored paper
money now i'll circulation will give
place to currency absolutely good. All
this without the slightest contraction of
the circulating medium.
Every legitimate demand for more
money" will be met; for every gold
dollar deposited in the treasury will put
in circulation three dollars of redeama