The farmers' union. (Memphis, Mo.) 1891-1895, 1894-01-11
A FINANCIAL HISTORY.
Course and Eject OF Legislation
Since 1851.
No 8.

any money on twenty years seven per
cent bonds, nor on your I 80 Treas
ury notes a. the rate fixed by the act
Of July last. II you offer to the
people and put on the market $780,.
100000 more, to the highest bidder
in the present aspect of affairs, they
would not be taken except in runious
rates Of discount. That policy would
depreciate the bonds already taken
BY the banks and the people who are
most loyal to the government, and
who came forward as your best
friends, and furnished the means so
much needed during the last few
months to organize your army and
navy; and besides depreciation will
greatly increase the debt by requir-
ing a much larger amount Of bonds
to he issued than would be needed If
your loans were taken 1T par. A
loah put upon the market in the
present depressed state Of United
States stocks, to be followed by other
larger loan, is not regarded as favo-
able mode of providing the means for
maintaining the government at the
present time. If it had been adopted
at first it might possibly have heen
tue best mole; but it is now too late
to essay that plan, and believe it
would be ruinous to adopt it. l fear
the twenty year six per cent bonds
would under the pressure fall to IS,
20, 60, and even so cents. This
would be ruinous mode Of raising
the means to carry ON the govern.
n.ent.
What, then, is to be done? The
Secretary Of the Treasury IN his an
nual report does not recommend the
issue OF demand Treasury notes, al
though be points out many advan
tages that would result to govern
ment from tue ISSUE He suggests
two plans: first the issue of demand
Treasury notes, aud second, ,
national currency, secured by
pledge Of United States stocks, to b.
issued banks and associations, will
proper regulations for their redemr
ton by the banks themselves. o.
the propriety of the issue of Trcasur.
notes by the government, to be bu
in circulation as money, the Secre
tary says:
The first of these plans were pal
tically adopted at the last session o
Congress, in the provisions authori2
ing the Secretary to issue Unite'
States notes. payable in com, to a
amount not exceeding fifty millio
dollars. That provision may be, S
extended as to reach the averag
circulation Of the country, while
moderate tax gradually argumente
on bank notes, will relieve the natio
from the competition OF local circ'
lation. 1t has been already suggeste
that the substitution OF nation:
Tor state currency, upon this pIaI
would be equivalent to loan to th
government without interest, exceE
on the fund TO be kept in coin, an
without expense. except the cos: c
preparation, issue, and redemption
while the people will gain the &C
iit,onnl advantage Of: uniform GU
rencv, and relief from a considerabl
burden in the form Of interest o
debt.
The remarks of the Secretary wer
before the suspension OF specie pa,
ments. The situation of the countr
is now very different from what
was two months ago. The c,rcun
stances have changed; and the Seer
tary and Congress will find it nece
sary, in the present, to conform the
action to what can be done, and M
what they would be able to d
we're It otherwise practable.
II you cannot borrow the money G
the credit O! the United States, e:
cept at runious rates OF discount, an
cannot make the new banking syste
available in time, and cannot realii
the amount required from your tar
aud tax bills, in what mode can Il