The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-12-07

lions. to see every Particle OF direren-
| tial duty in favor of refined sugar
stricken out O. our tariff law.
| earnestly repeat here The recommendation I
have r,ade in another portion Of this commu-
nication. that the additional duty OF one-tenth
OF cent per pound laid upon sugar imported
from foreign countries paying bounty on its
export be abrogated. It seems to me that eX-
ceed1ng!y important considerations point to
the propriety OF this amendment. With the
advent OF a new tariff policy not only ccntem-
plated TO relieve the consumers OF our LAID in
the cost of their daily life but to invite bet
ter Development of American thrift. and create
for US closer and more profitable commercial re-
lations with the rest of the world i. follows as n
logical and imperative necessity that We should
at once remove the CHIEF. if not oaly. obstacle
which has long prevented our participation ir
the foreign carrying trade oe the The
ancient provision Of or law denying American
registry to ships built abroad and owned by
Americans appears. in the light OF present
conditions. not only to be 4 failure fo- good at
every point, but to be nearer a relic OF barbar-
ism than anything that exists under the per-
mission OF statute OF the L ni:ed States.
earnestly recommend It's p-o:1p. repeal.
The Bond issue.
During the last month the god reserves in
the treasury for the purpose of redecming the
notes OF the government circulating as money
in the hands OF the people became reduced.
ard its further depletion in the near future
proper care for the public welfare it became
necessary to rcplenish this reserve and thus
maintain pcpula: faith in the ability and de-
termination OF the governmen: 20 meet. as
agreed its pecuaiary obligations. 1t would
have been we'll il in this emergency authority
had existed to issue the bonds of the gov
eminent bearing low rate OF interest
and maturing within n special period
but the congress- having failed to confer such
authority resort was necessarily had to the re-
ND mr. it,
vision, bonds We're issued drawing interest ut
the rate OF per cent. per annu;n and maturing
ten years after their issuing. that being the
shortest time authorized by the act. arl glad
to say. however. that on the sale OF these bonds
the premium received operate; to reduce the
rate of interest to be paid b. the government
to less than per cent. Nothing could be worse
or farther removed 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 fo- the purpose of repIen-
lShlng 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 canoe llatior. the fund would be
very small. But these obligations when re-
ceived and redeemed in gold are not cancelled,
but may be reiSSued ana may do duty MANY
times by way OF drawing gold from the treas
ury. Thus We have an endless chain in opera
and never near q final rest. As if this was not
bad enough, we have by :. statutory dcclara-
ton that it is the policy OF the government
to maintain the parity between gold and silver
aided the force and momentum of this exhaust
ing process and added largely to the currency
obligations claiming this peculiar gold redernp-
ton. Our small gold reserve is thus subject TO
draw from every side. The demands that in
crease our danger also increase the necessity Of
protecting this reserve against depletion. and
j. stS.f,
lection afforded is only temporary palliation.
1t is perfectly and palpaby plain that
the only way under present conditions by
which this reserve. when dangerously de-
pleted, can be replenished is through
the issue aud sale of the bonds of the
government for gold. and We: congress has not
only thus far declined to authorize the issue OF
bonds best suited to such q purpose. but there
seems disposition in some quarters to DENY
both the necessity and power for the issue OF
bonds ut all. cannot for moment believe
that any OF our citizens are deliberately willing
that their government should default in its
pecuniary obligations. that its financial
operations should be reduced to silver basis.
At any rate should not feel that my duty was
done if 1 omitted anv effort 1 could
make to avert such calamity. AS long.
therefore. as provision is made for the
final redemption or the putting aside OF the
currency obligation now used to repeatedly
and constantly draw from the government its
bond issues Is allowed than at present exists
such authority will be utilized whenever and
as often as It becomes necessary to maintain
sufficient gold reserve and in abundant time to
save the credit OF our country and make good
the financial declarations of our government.
Questions relating to banks and currency
are closely connected with the subject referred
to: they present some unsatisfactory features.
Prominent among them are the lack of ciasti-
city in our currency circulation and its FREE
Quent concentration in financial centerS when
1t Is most needed in other parts Of the country.
The absolute enforcement Of the government
from the business of banking is the ideal rela
tionship of the government to the circulation
of the currency of the country This condition
cannot be Immediately reached but as a stepin
that direction and as means of securing q
more elastic currency and obviating other OBJ
JectlonS to the present arrangement
of bank circulation the secretary of
the treasury presents his reported scheme
modifying present banking laws and
providing for the issue OF circulating notes by
state banks free from taxation under certain
limitations The secretary explains his plan
so plainly and its advantages are developed by
him with such remarkable clearness that any
effort on my part to present arguments in it's
support would be SuperhuouS. / shall therefore
content myself with an unqualified indorsc-
ment of the secretary-S proposed changes in
the law and q brief ana imperfect statement of
their prominent features.
IL Is proposed to repeal all laws providing
for the deposit of United States bonds as Sc
curity for circulation: to permit national
banks to issue circulating notes not exceeding
in amount 15 per cent of their paid up and I'M
impaired capital. provided they deposit with
the government as guarantee fund in United
States legal tender notes. including treasury
notes of 1890. equal in amount to b per
cent OF the notes they desire to issue this de-
posit To be maintained at all times. but when
ever any bank retireS any part of its circula-
ton u proportional pert of its guarantee
fund shall be returned to it, to per-
NIT the secretary OF the treasury to
prepare and keep on hand ready. for issue in
case an increase IN circulation is desired blank
national bank notes for each bank having cir
culation. AM to repeal the provision of the
present law imposing limitations and restric-
lions upon banks desiring to reduce increase
their circulation, thus permitting such increase
or reduction within the.limit Of - per cent. OF
capital to be quickly made emergency may
arise. In addition to the guarantee fund re-
Quired it is proposed to provide a safety fund
for the Immediate redemption of the circulating
notes of failed banks By imposing a
small annual tax. say oae-half
CT per cent upon the average circulation of
each bank until the fund amounts to per cent
of The total circulation outstanding. When q
bank fails its guarantee fund IS to be paid
into this safety fund and its notes to be re-
deemed in the first instance from such safety
fund thus augmented: any impairment of such
fund caused thereby to be made good from the
nediately available cash assets of said
bank. and if these should be insufficient. such
impairment to be made good by prorata as
SeSSment among the other banks, their
contributions constituting q frs. lien
upon the assets of the failed bank in