Crawford avalanche. (Grayling, Mich.) 1879-19??, 1894-12-06

guiahes to the extent Of closing refineries
and Thousands OF discharged workmen.
IL would seem to present q hopeless case
for reasonable legislative aid. Whatever
else is done or omitted, earnestly repeat
that the additional duty of one-tenth Of q
cent per pound laid upon sugar imported
from countries paying bounty upon its
export be abrogated. 1t seems to me
that exceedingly important considera-
tons point to the propriety of this amend
ment.
N With the advent of new tariff policy,
not only calculated to relieve the CONSUME
ers of our land in the cost of their daily
life, but inviting better development of
American thrift and creating for US closer
and more profitable commercial relations
with the rest of the world, 1t follows as
a logical and imperative necessity that We
should at once remove the chief II not
the only obstacle which has so long pre-
vented our participation in the foreign
carrying trade of the sea.
Issuing Of New Bonds.
During the last month the gold reserve
in the Treasury for the purpose OF re-
deeming the notes of the Government
circulating now in the hands of the peo-
pie became SO reduced and its further
depletion in the near future seemed SO
certain that in the exercise of proper
care for the public welfare II became nee
essary TO replenish the'reSzrve and thus
maintain popular faith inskhe,ability and
determination of the Government to meet
as agreed it's pecuniary obligations.
1t would have been well IL in this emer-
gency authority had existed to issue the
bonds of the Government bearing a low
rate of interest and maturing within
short period, but Congress having failed
to confer such authority, resort was nee
essarily had to the Resumption act of
1875. Nothing could be worse or further
removed from sensible finance than the
relations existing between the currency
the Government has issued, the gold
held for it's redemption and the means
which must be resorted to for the purpose
of replenishing such redemption when i'm
paired. We have an endless chain in
operation constantly depicting the Treas
ury's gold and never near a final rest.
As if this was not bad enough, we have
by statutory declaration that it is the
policy of the government to maintain the
parity between gold and silver, aided the
force and momentum of this exhausting
process and added largely to the cur
gold redemption. Our small gold reserve
is thus subject to drain from every side.
The demands that increase our danger
also increase the necessity of protecting
this reserve against depletion, and it is
most unsatisfactory to know that the pro-
lection afforded is only temporary pallia-
ton.
1t is perfectly and palpably plain that
Inv
which this reserve, when dangerously de-
pleted, can be replenished, is through the
issue and sale of the bonds of the govern
ment for gold; and yet Congress has not
only thus far declined to authorize the
issue of bonds best suited to such pur-
pose but there seems disposition in some
quarters to deny both the necessity and
power for the issue of bonds at all. / can
not for moment believe that any of our
citizens are deliberately willing that their
government should default in it's pecuni-
airy obligations or that its financial OPP
erations should be reduced to a silver
basis. At any rate l should not feel that
my duty was done if omitted any effort
could make to avert such a calamity.
Questions relating to our banks and
currency are closely connected with the
present some unsatisfactory features.
Prominent among them are the lack Of
elasticity in our currency circulation and
its frequent concentration in financial
centers when it is most needed in other
parts of the country. The absolute di-
vorcement Of the Government from the
business of banking is the ideal relation
ship of the Government to the circulation
of the currency Of the country.
This condition cannot be Immediately
reached, but as a step in that direction,
and as a means of securing more elias
tic currency and obyiating other objec-
tons to the present arrangement of bank
circulation, the Secretary of the Treasury
presents in his report a scheme for modi-
flying present banking laws and provid-
ing for the issue of circulating notes by
State banks, free from taxation under
certain limitations.
The Secretary explains his plans so
plainly and its advantages are developed
by him with such remarkable clearness
that any effort on my part to present ar
gument in its support would be superfiu-
Gus. / shall, therefore, content myself
with an unqualified Endorsement Of the
Secretary's proposed changes in the law
and brief and imperfect statement of
their prominent features.
1t is proposed to repeal all laws pro-
yiding for the deposit of United States
bonds as security for circulation; to per-
NIT national banks to issue circulating
notes not exceeding in amount 20 per
cent. of their paid-up and unimpaired
capital, provided they deposit with the
Government, as guarantee fund, in
United States legal tender notes, in
Guiding Treasury notes of 1890, sum
notes they desire to issue, this deposit
equal in amount to 30 per cent. of the
to be maintained at all times, but when
ever any bank retires any part of it's
circulation proportional part of it's qua
ranty fund shall be returned to it; to per-
NIT the Secretary of the Treasury to pre-
pare and keep on hand ready for issue in
case an increase in circulation is desired
blank national bank notes for each bank
having circulation and to repeal the pro-
visions of the present law imposing linn
itations and restrictions upon banks de-
string to reduce or increase their circula-
tion-thus permitting such increase or
reduction within the limit of Is per cent.
of capital to be quickly made as emer-
gencies arise.
In addition to the guarantee fund re-
quired, it is proposed to provide safety
fund for the immediate redemption of the
circulating notes Of failed banks by i'm
posing small annual tax, say one-half of
! per cent. upon the average circulation
of each bank until the fund amount to 5
per cent of the total circula tion oufatand-