The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-04

THE REMEDY.
4 am conNln,s~ ~, Ga, thorough and
pGacucavic fe.u,uS ioG OF laouU,u II 10
Dc lOuuu IN lIe i,isi caltn. s...u ,auccild-
lOn Que tn4,Vu Sta,,S nvt,s. NOIaI-
monty Gained gr,chDacns. aha tnc CUT
stalsusnk ifcaa~sy nO,cs Issued Dy tne
sVNctlu,cht la iaylA,nt Ca SAVE. PUG
,naSvS unocr the act OF ls.v.
DtiicNe TINS costu Dv pulte readily ac-
COnlpnsned ~ tn, ,ACnangc vi these
hOt,a iOf United states Donos OF snan
40 wen as iaIkt denominations. bearing
low rae oi interest
lheN snonia toe iong-tcrm bonds, thus
increasing their ucsliaDInty as invest
ih"h's, anu because their payment could
he wen postponed 10 "a period lar removed
from ~ tscht financial burdens ana per-
ptAiues, Wncn with increased prosperity
anu resources they wouiG be more easiy
met
10 further insure the cancellation OF
THESE notes anu also PROVIDE a way by
winch gold may be aducd 10 our currcn-
~ IN heu Of mem feature iH the pan
should be an authority gwen 10 the Secre-
t"iE OF me treasury To- dispose OF the
bonds abroad Tor gold III necessary, TO
complete the contemplated redemption
ana cancellation. permitting HIM 10 use
IN" procccGs Of such bonds 10 take up
ana cancel any OF the notes that may be
IN the Treasury or that may be received
~ the Government on any account
REMOVE THE CAUSE.
The Increase Of our bonded debt in
vowed IN this plan would be amply com
pthsated by renewed activity and enter
PIls. IN all business circles, the restCred
tvnHdchcc at home, the rcinstated faith
IN our monetary strength abroad. and
me stimulation Of every interest and in
nhstfy that would follow the cancciia-
tion OF the gold demand obligations now
afhicting as. In any event the bonds
proposed would stand for the exunguisn-
lnent OF a trOublous Indebtedness. while
IN the path We now follow there turks
the menace Of unonding bonds with our
Indebtedness stin and aggravated In cNby
feature The obligations necessary TO
FUND this indebtedness would not equal
In amount those from which We have
been relieved since 1881 by anticipation
and payment beyond the requirements
OF the sinking fund. out Of our surplus
revenues
The currency Withdrawn by tho retire
nent Of the United States notes and
Treasury notes. amounting TO probably
loss than $40. 90 600. might be supplied
hy such gold as would be used on their
retirement or by an increase I'm the Cir
rnlaiion OF our national banks. Though
the aggregate capital Of those now in cX
istence amounts 10 more than 1864. 600 900.
their outstanding circulation based on
bond security amounts TO only about
fFeooooo'. They are authorized TO issue
notes amounting TO ninety per cent. OF
tho bonds deposited TO secure their cir
culation. bui In no event beyond the
amount Of their capital stock. and they
arc oUlGfN To pay one per cent. TAX on
the circulation they issue.
NATIONAL BANK ISSUES.
j think they should be allowed to issue
circulation equal TO the par value OF the
bonds they deposit 10 secure N, and that
The tax on their circulation should be
reduced 10 one-fOurth OF one per cent,
which would undoubtedly meet all the
expense the government incurs on their
account. in addition they should be al
lowed 10 substitute or deposit In lieu OF
the bonds now required as security for
their circulation those which, would be is
sued for the purpose Of retiring the Unit
ed States notes and Treasury notes
The banks already existing, II they he
sired to avail themselves of the prOvis-
ions Of law thus modified. could issue
circulation I'm addition 20 that already out
standing. amounting TO >iNVyOWu. when
would nearly or quite equal the currency
proposed 10 be cancelled. At any rate
7 should confidently expect 10 see the
existing national banks or others 10 be
organized avail themselves OF the propos-
I'd announcements TO issue circulation
and promptly nl any vacuum ana supply
every currency need.
II has always seemed TO me that the
provisions OF law regarding the capital
~ national banks which operate as a
limitation 10 their location fails TO make
prODor compensation fer the suppression
of State banks which came near TO the
peopie I'm all sections of The country and
readily furnished them with banking ac-
COmmodafiOns ana iacilll"S.
BRANCH NATIONAL BANKS.
Any convenience or embarrassment aris-
ing from these restrictions on the loca-
ton of national banks might well be
remedied by better adapting the present
system To the creation Of banks IN small
er communities or by permitting banks
Of large capital 10 establish branches in
such localities as would serve the peO-
plc-sO regulated and restrained as 10
secure their safe ana conservative con-
troll and management
But there might not be the necessity
for such an addition to the currency by
new issues OF bank circulation as at first
glance is indicated. If we shOuI be
relieved from maintaining gold reserve
under conditions that constitute in the
barometer of our solvency. and If our
Treasury should no longer be the fool
ish purvcyor OF gold for nations abroad
or for speculation and boarding by our
citizens at home l should expect 10 see
gold resume its natural and normal func-
lions in the business affairs Of the ccun-
try and cease 10 be an object attracting
the timid watch Of our people and eXcit-
ing their sensitive Vaccinations
do not overlook the fact that the
cancellation Of the Treasury notes issued
under the silver purchasing act OF 1870
would leave TIE Treasury in the actual
ownership Of sufficient silver. including
seipniOrage. 10 coin nearly $4,000 600 IN
standard dollars. u Us worthy OF con-
sheraton whether this might not. from
time 60 time. be converted into dollars
or fractional coin and slowly put into cir
culation. as in the Judgment Of the Soc
rotary OF the Treasury the necessities
~ the country should renuire.
LESSON or THE PAST.
Whatever is attempted should be enter
ed upon fully approaching the fact that
by careless, easy descent we have reach
ed dangerous depth, ana that our as
cent will not be accomplished without
laborious toll and struggle. We shall
be wise II We realize that We are flr5n-
cially al and that our restoration TO
health may require heroic treatment ana
unpleasant remedies
In the present stage OF our dinicuitN
IL Is not easy TO understand how the
amount Of our revenue receipts directly
affects II. The important question Is not
the quantity Of money received IN rtNe-
nue payments but the KIND OF money
ne maintain and our ability TO continue
n sound financial condition. We are
considering the Governments holdings of
rold as related TO the soundness of our
money and as affecting our national
.redit and monetary strength.
II our gold reserve had never been I'M
,aircd II no bonds had ever been issued
% replenish il. II there had been no fear
md timdity concerning our abiitN 10
continue gold payments. II any part OF
,ur revenues we're now PAID IN Soid. ana
We could look 10 our gold receipts as
means OF maintaining safe reserve
no amount OF our revenues would be
n influential factor in the problem. but
Unfortunately all the circumstances that
hight lend weight 10 this consideration
re- entirely lacking in our present pre-
icament. No gold is received by the
overnment i'm payment Of revenue
harges nor would there be II the rev
nues We're increased
SILVER AND NOTES
The deficits Of the Treasury. when not
silver certificates consist Of United