Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1894-12-14

Frequent issues OF bOnuS Tor the pur-
pose of procuring gold. which can not
be kept after ii has been obtained, will
certainly cause increased distrust
among our own people as we'll as among
the people of other countries and not
only swell the volume of our securities
returned from abroad, for sale or re-
demption. but increase the withdrawal
of foreign capital here. before invested
in domestic enterprises. We can not
preserve our trade relations with the
best customers for our surplus products
unless we maintain "A monetary sys-
tenn substantially in accord with theirs,
and until they manifest a disposition
to cooperate with the United States in
effecting a change upon terms just and
fair to all our interests we ought to
continue our adhesion to the gold
standard of value with as large use
of silver as is consistent with strict
maintenance of that policy.
"Since the resumption of specie pay
ments United States legal tender and
treasury notes have been redeemed in
gold to the amount of $50, 900. 900 and all
notes redeemed have been reissued and
are now outstanding. They are con-
slant menace to the gold reserve and
no scheme of financial reform can be
complete or effectual which does not
provide at least for their gradual elm
nation from our currency system
II am convinced that the interests
of the country requires such change in
our organization as will discharge the
government entirely from the business
of issuing or re-issuing these notes and
thus relieve it's financial department of
the periodical demands on it's resources
which, under the existing system. must
continue to disturb the financial and
general business affairs of the people.
Arbitrary regulation of the value of
circulation to be kept outstanding is
wholly inconsistent with the mainten-
tenance of healthy financial condition
and is the exercise of function which
does not properly belong to the gov
eminent or any other public authority.
Its effect is to force paper currency on
the people when it is not needed and
deprive them of il when it is needed.
thus establishing and maintaining an
improper and unwarranted connection
between the government and the pri-
vate business affairs of its citizens
and making their successful prosecution
largely dependent on the caprice of
superior authority having no interest
in the transaction, except perhaps par
tisan interest. not in harmony with
sound financial arrangements"
AN UNJUST TAX.
In my opinion the imposition of the
tax by the federal government upon
| the use of circulating notes lawfully
| bxyt he To ha i- ittS i
! fable If not an unconstitutional inter
ference with the authority of the sew
eral states, but it's validity has been
| judicially sustained and as it does not
appear to be practicable to repeal abso-
! lutely at this time, it is proposed to
/ avoid its prohibitory except by exempt
/ ing from taxation the notes of such
banking institutions as may be organ
! lied and conducted under conditions.
! which amply protect the holders OF
their paper. 1t will be observed that
the plan submitted proposes repeal
, of all the provisions of existing laws
which require national banks to hold
| fixed reserve against deposits, and
as this is departure from the practice
which has prevailed continuously for
more than 30 years, it Is proper to state
the reasons which have prompted me to
make these suggestions"
THE BANKING SYSTEM.
The secretary here takes up the ma
tlonal banking system from the time
that 1t was originally organized and
discusses the many features in de-
tail, He says: 1T is not my duty nor
the province of the government to rule
the people except for certain well-de-
fined purposes and as the custody and
use of funds belonging to depositors are
matters which affect only the interests
of the intermediate party, they should
be left to their own judgment and dis
erection. Every properly managed
bank, if left free to conduct it's owr
deposit and discount business in the
manner most advantageous to it's owr
interests, will keep on hand a reasona
BILE reserve to meet not only ordinary
demands, but to provide for such emer
gencies as are liable to occur in the
community where it is located, but Il
ought to be prohibited by law from
using such reserve for the only purpose
it was designed to accomplish. Thu
requirement that banks shall pay theil
own obligations imposes upon them NJ
greater hardships than is imposed b!
law upon every other business ant
financial institution in the country ant
. the only argument that can be plausibl.
urged against 1t in case of the bank
Is that as the government has under
taken through their agency to secur
a sound circulating medium it SHOULD
pledge its credit to keep it good unde
all circumstances.
"The conclusive answer to this is tina
, the government has discharged it
whole duty in the matter when it ha
l provided such safeguards as will guar
r antee the safety of notes issued b
it's authority and this is one of the re
suits which the proposed plan is In
< tended to accomplish. The experienc
of this country under the act of Eel
i ruary 1874, which limited silver Gel
< tificates to denominations of $40. an
I under the act of August 1886, whic
removed that restriction, justifies tn
belief that the change now propose
will result in greatly increased use {
, silver coins and certificates and tha
- they would be much less likely to +,
. turn to, and remain in the treasury tina
at present.
FOUND RICH PLACER DiCClNCS.
& Gold Excitement on Boulder Greek Ne;