The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-12-05

| of its depOsi' ors Will keep on hands reas
| onable reserve to meet not only th'
| ordinary demands upon II, but 10 provldt
| for such emergencies as are liable to occul
| in the community wnere il is located: bal
| il ought not to be prohibited by law iron
using sncb reserve for the only purpose /
| was designed to accomplish. The require
| ment that the banks shall pay their owl
| obligations imposes upon them no grea' el
| hardship than is impOs- by law upoi
every other business and financial lnstitu
| ton in the country, and the only argument
| that Can he plauslby urged against II, IL
the case of the banks, is that, rs the gov
eminent has undertaken through theil
agency to secure a sound circula ing me
dunn, it should pledge its credit to keep il
good udder all circumstances.
The conclusive answer to this is that
the government has discharged its whole
duty ia the matter when it has by It's
legislation provided such safeguards "A.
will. with honest and competent manage
ment, guarantee the safety of the notes
issued by its authority; and this is one OF
The results which the proposed plan is in
tended To accomplish.
TO GIVE SILVER A CHANCE
'In order TO provide wider field for the
active circulation of our silver coins and
certificates which now constitute about
one fifth of the entire volume of our cur
ouNl " pIOtcCt tHS treasury d.
as possible against The accumulation Of
certificates returned in payment OF Gus
toms and other dues to the government,
IL Is proposed that 10 national bank note
OF less than ten dollars all be issued.
The bank notes under that denomina-
tiOn now outstanding amount to S63, DIS,
$40 and there are also in circulation s6i,
AIS S3l in old United States legal tender
notes in denominations less than ten dol
lars, $50 1913 65S in treasury notes of 1890
and Sl3l, 041. 547 in silver certificates, max
ing the aggregat. S3lS.6l8 9S5 in small
notes, are only about Sl9,O0J.000 less than
the entire issue of silver certificates.
The fact that our circulating medium
is composed of so many different kinds of
currency would seem 10 require the enact
ment of such legislation as VIII provide a
place in which each can be safely aud col-
yenieutiy used, and as this can be done
without discrimination against any of
them II ought not to he omitted from any
plan which proposes permanent changes
III the system.
POLICY OF OTHER NATIONS.
"The policy of various other countries in
this respect appears TO nave enabled them
to avoid the difficulties encountered here
ia the attempt TO keep the less valu BILE
coins and their representatives In circula-
ton without arrangement Of the cur
rency or the disturbance OF the public
finances
Great Britain, with S555. 600. 900 in gold
and only SIP, 100000 in silver, none of
which is full legal tender, authOriZ IS the
issue of no notes of less denomination han
s., equal to S24 80; France, Belgium aud
Italy, with 1916 00O, 900 in gold and S5lS.-
800, coo in legal lender silver. issue no notes
of less denomination than 20
francs, or So sc; Holland. with $27,-
600, 900 in gold and SIS, 400, 600 in
legal tender silver, issues 80 paper
below % 1nrins, equal to $40 05; Spain,
with 10000 900 in sold and Sl20. 90, 600 In
legal tender silver, issues nothing below %
pesetas, or Si.72; Denmark, Sweden and
Norway, with SIS, 600. 900 in gold aud SIP,
100, 600 in limited legal tender silver have
10 paper under 10 crowns or 81 6S, and
Austria II hungary, with $3.50, 000 00O ia gold
and SSl.O00,0O0 III legal tender silver, is
gradually retiring all notes under 10
crowns, or 81 OF None of these countries
have any paper based exclusively upon
silver as we have, and consequently all
payments made in sums less than the de-
nominations of notes mentioned must be
made IN actual cO!n, which would not be
the case here if the recommendation now
made should be complied with.
SILVER CIRCULATION INSTRUCTED.
"Our stock of full legal tender silver
coins is larger in proportion to the stock
of gold than in any OF the countries named
except Holland, Belgium aud Spain, and
Yet we continue 10 obstruct theIr circula
lion by the issue of small y lited States
Notes aud bank notes which serve the pur-
poses OF the people in their daily transac-
tiuns no better than the coius or certif
Gates based upon them.
"The experience of this country under
the act OF Feb. s. 1874, which limited silver
certificates TO denominations OF SO, and
under the act of Aug. 4, 1856, which re-
moved that restriction, justifi-s the belief
that the change now proposed would re-
suit in greatly increased use OF silver
coins and certificates and that they would
be much less likely TO return To aud re-
main in the treasury than at present.
AT the time of the passing of the act
last referred to, permi ting Tie issue of
silver dollars not Represented by certih-
Gates, in denominations OF one. two aud
five dollars, standard silver dollars had &C
cumulated IN the treasury to the amount
of SS3. $50 $50, although the total coiuane
up TO that date WAS Only S23t 6ij, 2S6
" thin four months after that uaIe al
though in the meantime the coinage was
progressing at the usual rate, tue amount
of free silver held in The treasury was re-
duced to 81, 259. 56S. and it continued TO
decrease, on account of the demand for
small rtIticates, until it became 50 re-
duced that further issues of certificates
had to be limited, practically, to the cur
rent coinage of the dollars.
MORE REVENUE REFORM
On the subject of revenue reform the
secretary continues:
If this country is to utilize TO the
fullest extent the opportunities offered by
its geographical position, natural re-
sources and the mechanical skill and COM
mercial enterprises of its people, it must
"a ~ sr.uHfaSt Z and fN he
revenue policy lnaugurated by the present
congress at Its last session.
tine reduction of taxation to the lowest
point compatible with the collection of n
revenue sufficient To maintain an efficient
public service Is a duty which. upon the
piaine>t principles or Justice, every
government owes to It's citizens under
all circumstances, out When the fax
alton is IMPOSED in such form
and at such rates as to increase tue cost of
living aud instruct the processes of indus
try and trade, this duty becomes still more
imperative. and failure TO Discharge il
when the power exists Is Il gross violation
of publIc trust and confidence.
For many years our tariff laws have
been framed upon the theory that the
wealth of the country could be increased
by imposing burdens upon the people and
hat the prosper " of our industries could
be promoted by Increasing the cost of pro-
due ion. aud the result has been that the
net profits OF labor and capital constantly
until they reached "A point
W hich made further development of our
resources almost impossible.
CALLS 1T FREE TRADE"
But little opportunity WAS afforded for
the extension of our manufac uring and
mechanical, industries, or for the growth
of our trade at home or abroad, and thus
the farmers and other producers OF the
country were confronted by a situation
which compelled them TO receive d.
minished rewards for increased produc-
tlou.