The Coeur d'Alene press. (Coeur d'Alene, Idaho) 1892-1907, 1894-12-08
The Yi.s.eial o.estlo..

The Ylssseial DIGESTION.
During the last month the gold re-
serve in the treasury for the purpose Of
redeeming the notes Of the government
circulating as money in the hands Of the
people became 20 reduced, and it, fur
ther depletion in the near future seemed
20 certain that in the exercise Of proper
care for the public welfare it became
necessary to replenish the reserve and
thus maintain popular faith in the abil-
ity and determination Of the government
to meet ~ agreed its pecuniary obliga-
tions. II would have been we'll il in
this emergency the authority had exist
ed to issue bonds Of the government
bearing low rate Of interest and ma
turing within q short period. The last
session Of congress having failed to con-
fer such authority, resort MAS necessa-
rily had to the resumption act Of
1875. and, pursuant to its provisions,
bonds were issued drawing interest ct
the rate Of 5 per cent per annum and
maturing 10 years after their issue, that
being the shortest time authorized by
the act. ! am glad 10 say. however,
that in the sale OF the bonds the
premium received operated 70 reduce
the rate Of interest to be paid by the
Nothing could be worse or further re-
moved from sensible finance than the
relations existing between the currency
the government has issued, the gold
held for its redemption and the means
which must be resorted to for the pur-
pose Of replenishing such redemption
fund when impaired. Even il the
claims upon this fund were con-
fined to the obligations originally
intended, and II the redemption Of
these obligations meant their cancella-
ton, the fund would be very
small. But these obligations when re-
ceived and redeemed in gold are not can
celled, but are reissued and may do duty
many times by way Of drawing gold
from the treasury. Thus We have an
endless chain in operation. constantly
depicting the treasury's gold, and never
near final rest. As il this was not bad
enough, We have by statutory declare
ton that it il the policy of the govern
ment to maintain the parity between
gold and silver, aided the force and mo-
mentum OF this exhan ting process and
added lxrgely to the currency obligations
claiming this peculiar gold redemption.
Our small gold reserve is thus subject to
drain from every side.
DEMANDS IxcREAsrxo.
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
protection afforded is only . temporary
palliation. 1t lie perfectly and palpably
plain that the only way under the
present conditions by which this re-
serve. when dangerously depleted, can
be replenished is through the Issue and
sale OF bonds OF the government: for gold.
and vet congress has not only thus far
declined to authorize the issue OF bonds
best suited 10 such . purpose, but there
seems a disposition in some quarters to
deny both the necessity and power for
the issue OF bonds at all. / cannot for
\ a moment believe that any OF orr city
ems are deliberately willing that their
government should default in its pecuni-
ary obligations, or that its financial
operations should be reduced to . silver
basis. At any rate, should not fee
that my duty was done ii !
omitted any effort l could mak'
to avert such . calamity. Al
long, therefore, as no provision
is made for the final redemption OF
the putting aside for the currency, obi
CATION now used to repeatedly and con
stantly draw from the government IT,
gold, and 90 long as no better authority
for bond issues is allowed than at pres
ent exists, such authority will b.
utilized whenever and as often as be
comes necessary to maintain q sufficient
gold reserve and abundant to save the
credit of our country and make good the
financial declarations OF our government
Questions relating to our banks and
currency are closely connected with ths
subject Just referred to, and they alsS
present some unsatisfactory features
Prominent among them are the lack o
elasticity in our currency circulation
and its frequent concentration in hnan'
cial centers when it is most needed in
other parts OF the country. The abso
lutte enforcement Of the government
from the business of banking is the idea
relationship of the government to tn
circulation Of the currency OF tn
country.
SECRETARY cARLIsLE's PLAN.
This condition cannot be immediatel.
reached, but as Q step in that direction
and as means OF securing more elias
tic currency and obviating other oblec
tons to the present arrangement OF banl
circulation, the secretary OF the treasur.
presents in his report Q scheme modify
ing the present banking laws and pro
viding for the issue OF circulating note
by state banks free from taxation, uude
certain limitations. The secretary ex
plains his plan 90 plainly, and its ad
vantages are developed by him will
such remarkable clearness, tha
any effort on my part to presen
argument in its support woul'
be superfiuous. l shall. therefore. cor
, tent myself with an unqualified indorss
ment OF the eecretary's proposed change
in the law and brief and an imperfec
statement Of their prominent features
Ii is proposed to repeal oil laws provit
ing Tor the deposit Of United State
! bonds as security for circulation; to PEI
. NIT national banks to issue circnlatiu
notes not exceeding in amount 20 pt
i. cent Of their paid.up and nnimpaire
capital. provided they deposit with tn
government rs guarantee fund ]
I United States legal tender notes, incluc
, ing treasury notes Of 1890. = sum I
equal amount to 80 per cent Of the note
they desire to Issue; this deposit TO /
. maintained at all times, but whenevs
: any bank retires any part OF its circult
, ton a proportionate part OF l,
|, guarantee fund shall be returned
, It; to permit the secretary
! the treasury to prepare and keep o
hand ready for Issue in case an increas
/, in circulation is decried, blank nation,