The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1895-12-04

return Of our securities already sold abroad,
and the high rate of foreign exchange, which
induced the shipment of our gold to be drawn
against, matter of speculation.
1.-THE president here alludes to the fact that
the situation steadily grew worse and IL again
became necessary TO strengthen the gold re
serve. Again disappointment awaited the
anxious hope for relief. He then refers to the
agreement with II number of hnanciers and
banks, and saysl:
On the day this contract was made its terms
We're communicated to congress by special
executive message, in which jt was stated
that more than $lG,C0J0O0 would be saved 60
the government If gold bonds, bearing8 per
cent interest, were authorized to be substi-
tuted for those mentioned in the contract.
Congress having declined to grant the neces-
sary authority to secure this saving the con
tract, unmodiied, was carried out resulting
in gold reserve mounting to 800, 81, $50 on
July 3, 1893. The performance of this contract
MOI only restored the reserve, but checked for
time the Withdrawals of gold and brought
period of restored confidence and such
peace and quiet in business circles as were OF
the greatest possible value to every interest
that affects our people have never had the
slightest misgiving concerning the wisdom or
propriety of this arrangement and am quite
willing to answer for my full share of
Responsibility For Its Promotion.
| l believe it averted disaster, the immi-
nence Of Which was fortunately not at the
time generally understood by our people
| time the tide of gold withdrawal, It's good re-
suits could not be permanent Recent with
| drawas have reduced the sum from $l0T OIL
230 on July 3, 1895, to S19,333, &c., How long it
| will remain large enough to render its in
crease unnecessary is only a matter of con
| lecture.
The foregoing statement of events and CON
| dtions develops that fact that after incress-
| ing our Understanding bonded indebtedness
more than Sl62,O0J,0JO to save our gold reserve,
| nearly where Stnrtad having
in such reserve $40, 1888 066, against SIS s877
| in February, 1894, when the first bonds were
| issued.
Though the amount of gold drawn from
the treasury appears to be very large, rs
| gathered from the facts and figures herein
| presented, it actually much larger, con
siderable sums having been acquired by the
treasury within the several periods stated
without the issue of bonds.
On Jan. 28, 1885, it was reported by the secre-
tary of the treasury that more than $172 OJJ,Oo0
of gold had been withdrawn for boarding or
| shipment during the year preceding. He now
reports that from JAN l, 1879, to July H. 1890
| period of more than IL years, only "a little
| over $!8,00O0J1 was withdrawn, and that b<>
| tween July H. $780, the date of the passage oe
the law for an increased purchase of silver,
and Dec. !, 1895, within less than So years
there was withdrawn nearly $375,0) $50, max
ing total of more than sl03, 900, 900 drawn from
the treasury in gold since Jan. l, 1879, the date
fixed in 1873 for the retirement of the United
States notes.
Nearly $327,0O)OJO of tho gold thus with.
drawn has been paid out of these UnitsI
States notes; and yet every one # the S346 iOl-
200 is still una lcelled and ready do serviosf
in future gold depletions More than $4,000
OOO in gold has, since their creation in 1887
been paid ont from the treasury upon tb,
notes given the purchase of SILVER by tfs
government
And yet the whole, amounting to $4,000
OOO, except little more than Sl6, JJJ,JO, which
have been retired by exchanges for silver al
the request of the holders, remains outstan +
ing and prepared to JOIN TIA ir oil Ter and IN ore
| experienced lies in future raids upon the
treasury's gold reserve.
Plans For Relief.
A situation is exhibited which certainIs
ought to arrest attention and provoke immedi.
ate legislative relief. am convinced the only
thorough and practical remedy for ouv
troubles is found in the retirement and can.
collation. of United States notes. cons
monty called greenbaclts, and the outstanding
treasury notes issued by the government i'm
payment of silver purchased under the act OF
1890.
believe this could be quite readily ACCOM-
pi5hed by the exchange of these notes fof
United States bonds Of small well as large
denominations, bearing low rate Of interest
They should be long term bonds, thus increas.
ing their desrability investments and be.
cause their payment could be we'll postponed
to period far removed from present financial
burdens and perplexities when, with increased
prosperity and resources, they would be moro
easily met.
To further insure the cancellation of these
notes and also provide n way by which gold
may be added to our currency in lieu of them
feature in the plan should be an author
ity given to the secretary of the treasury
to dispose of the bonds abroad for gold AZ
necessary, to complete the contemplated re-
demption and cancellation, permitting him To
use the proceeds of such bonds to take up and
cancel any OF the notes that may be in the
treasury that may be received by the gov
eminent on any account.
The increase of our bonded debt involved in
this plan would be amply compenss ted by re
newed activity and enterprise in all business
circles, the restored confidence at home and
the reinstated faith in our monetary strength
abroad.
In any event, the bonus proposed would
stand for the extnguishment of a troublesome
indebtedness while in the path we now follow
there turks the menace of amending bonds
with our present Indebtedness still undis.
charged and aggravated in every feature.
think national banks should be allowed to
issue c'rulatlon equal to the par value of the
bonds they deposit to seer ire It, and that the
tax on their circul alton should be reduced to
"a of | pei cent, which would undoubtedly
meet all the expense the government incurs on
their no count In addition they should be al
lowed to substitute or deposit in lieu of the
bonds now required as security for their cir
purpose of retiring the United States notes
and treasury notes.
1t has always seemed to me that the provi
sions of law regarding the capital of national
banks which operate rs limitation to their
location fails to make proper compensation
for the suppression of state banks, which
came near to the people in all sections OF the
country and readily furnished them with
banking accommodations and facilities.
Any Inconvenience embarrassment arts-
ing from these restrictions on the location Of
national banks might well be remedied by
better adapting the present system 10 the
creation OF banks in smaller communities, on
by permitting banks of large capital to estab-
lish branches in such localities would serve
the people-so regulated and restrained as to
secure their safe and conservative control and
management.
1t is neither unfair nor unjust to charge a
large share of our present financial perplext-
ties and dangers to the operation of tho laws
of 1873 and 1890 compelling the purchase Of sill
yer by the government
No government no human continuance Ca