The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-17

stave1oreS 3 surplus revenue euao1e1 t1S
treasury 20 pay out gold without sistnTe-
ing the reserve. and. beside. there @as a
shat tine 10 great demand for gold y ne
presentation OF notes for redemption al
there would, therefore. have been 10 Gif-
acuItv n maintaining the reserve, cen y
there had been no surplus II the treasury,
bat the conditions have entirely changed
ard Al entirely different policy Is dersa
&c 20 meet the situation now exlstrg-
VIVA or without a surplus reven9e, the
government can naw procure gold oniy %
nerotfating loans or by making purchases
urafar the statute. and this state o Affairs.
which ls the natural result or causes SUI
operative. IS almost certain 20 continue w
81 the causes themselves are removed.
There s. bat one safe ard effeetual say'
the secretary says. "to protect cur treasury
against TIE demands, ard mat Is % rsilre
and cancel the notes which constitute tise
oaiy means through whica the withdrawal.
can BE- made Many partial ard temporary
remedies may be suggested and urged VIII
Euors or less piaasiollity. but tbs t. ne
only one faat viii certainly remove the
real cause OF our troubles and give assdr-
snce OF permanent protection against tnsir
recurrence IA sae future. This car oe nlost
successfully and economically accomplish
q BY authorizing the secretary 70 ISSUE
from tine 20 time bonds payable In gold
bearing interest a. a rate lot exceeding
per cent. per annun and having a long 1a1e
70 run and 20 exchange the bonds Tor
United States notes ard treasury notes upon
such terms as may be most ADVANTAGEOUS
to the government, or 10 sell them aoroad
for gold whenever IN his Judgment Il is al
xfsable 20 DO so, and 20 use the gold thus
obtained FL redeeming the outstanding
notes Under the operation OF such a plan'
IL 5udtciausIy executed. there could De no
improper contraction OF the circulation, De-
cause IL It should at any time Do found
that other forms OF currency were not De-
ing supplied 20 the extent required, ex-
changes OF boads for notes would be sus-
pended and gold would he procured by sell
.ng the securities abroad. In order TO fur
thar facilitate the substitution Of other cur-
rency for the retirement OF legal tender
notes, the national banks should be author
lied 10 issue notes equal IL amount 70 the
face value OF bonds deposited TO secure
them. and the tax on their circulation
should be reduced 10 one-fourth Of / per
cent per anuum.
As a part OF the plan so- the retirement
and cancellation OF the legal tender notes,
the treasury shotId be relieved from re-
sponsiblhty for the redemption OF national
bank notes, except worn, mutllated and
defiled notes and the notes or failed banks,
and each association should be required 10
redeem its circulation at its own office and
troi,er or the currency. as was the case
prior to the passage OF the act OF June go
1884,; or, II this is not considered expedient,
and the present system OF currency re-
demp;ion by the treasury Is continued, the
secretary should have the power, after
future date, 10 be fixed in the law. 10 re-
qure the banks 10 keep their per cent
redemption fund in gold coin and 70 deposit
Il for the withdrawal OF bonds whenever
circulation Is 20 be permanently surrender
ed or reduced"
The secretary also favors the passage OF
law allowing national banks to estab-
lfsh branches In small towns, with a view
to bringing them closer TO the people In
parts OF the country remote from large
towns and cities. by which their usefulness
would be greatly enhanced.
The secretary, In closing his report. SAYS
that Il Is not probable that any plan for
the permanent retirement or United States
notes and treasury notes will be adopted
that will not require considerable time for
its complete execution, and he therefore
urges upon congress the propr.ety of pro-
hibiting any further Issues or such notes
or national bank notes OF less denomination
than $40. thus making room In the clrcula-
ton for silver coins and silver certificates
OF small denominations. This, he says,
would increase their use among the people
and prevent their frequent return TO and
accumulation I'm the treasury.