The herald-advance. (Milbank, S.D.) 1890-1922, 1894-12-07
BONDS.
BONDS.
The President
Issued as often They Will Be


During the last month Necessary.
in the treasury for the pu, oo,d reserved
Ing the notes Of the governI5s of redeem
now in the hands of the peopmirculafing
reduced and its further deplepcame So
near future seemed SD certain thGin the
exercise OF proper care for the pubn the
fare it became necessary to replenisNei
reserve and thus maintain popular faitlfe
the ability anu determination of she gov
ernment 10 meet, as agreed, its pecuniary
obligations.
1t would have been we'll If in this emer-
gency authority had existed to issue the
bonds of the government bearing low rate
of interest and maturing within q short
period. but the congress having failed to
confer such authority resort was necessarily
had to the resumption act of 1879 and pur-
suant to its provisions bonds were issued
drawing interest at the rate of ) per cent
per annum and maturing ten years after
their issue, that being the shortest time au-
thorized by the act. | am glad to say, how
ever, that on the sale of these bonds the
premium received operated to reduce the
rate of interest to he paid by the govern
ment 10 less than 3 per cent.
Nothing could he worse or further re-
moved from sensible finance than the rela-
tiUnss existing between the currency, the
govrnment has issued. the gold held for it's
redemption and the means which must be
reaortcd To for the purpose OF fepiemShlng
such redemption fund when impaired Even
if the claims upon this fund We're confined
to tho obligations originally intended ana
If the redemption of these obligations mean
their cancellation, the fund would b" very
small But these obligations when received
and redeemed IN gold are not clnce.'a. u, nnt
are reisSucd and NAV do duty many times
by way of drawing gold from the t"aSnfy.
A Plan Suggested by Scere ~! TAR
Isle Is Endorsed.
&ce<ticnS relating to our banks ana cur
rpu,y are closely connected with the sub
ie,t inst referred To and they also present
kome unsatisfactory features Prominent
among them are the lack ot eia ,tlelty ,h our
currency circulation ana its frequent con
centratiou in financial centerE when 1t IS
most needed in our parts OF me country.
The absolute enforcement af the govern
mpnf from the business OF banking Is the
ideal relationship OF the government 70 the
circulation Of the currency at the country.
This condition cannot me immediately Ieaeh-
ed, but as A step IN that direction ana aS
means OF securing 4 more castle currency
and obyiating other objections to the pres
eut arrangement of banl circulation, the
secretary of the treasury presents III ms re
nort n scheme modifying present bank laws
ana providing for the issue Of circulating
notes by state banks free from tax ltlon uh-
der certain limitations.
InuualiiicalN Endorsed.
The secretary explains his pal 50 plain
" aud ill., advantages are developed hy
him with such remarkable ciearness that
any effort OH my part TO present argument
In its support would be superclthols.
shall Therefore content myself with an
unaualifiel Endorsement Of the secretary
proposed changes III the law and brief
and imperfect statement Of their prominent
features
| conclude this communication fully appre-
ciatng that the responsibility Tor all teg4s.
lation affecting .he people Of the lnifed
States rests upoh their representatives IN
the congress, and assuring them that
whether in accordance with reeommenda-
tions | have riade or not | shall be glad
to cooperate In perfecting any legislation
that tends to the prosperity and welfare, of
our country. -'sroVer CleNeiahd
Executive ,nsion, I~c. 3. 1894.