The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-04

E! tingulshnient OF a troublesome indebted
ness. while In the path We now follow there
turks the menace of unendinE bonds, with
our Indebtedness stu nadischarged and ag-
| grnvated In every feature. The obligations
necessary TO fund this indebtedness would
| not equal In amount those from which we
| have been relieved since 1884. by antcipa-
/ ton and payment beyond the requirements
OF the sinking fund out OF our surplus rev.
/ enues.
The currency withdrawn by the retire.
ment or United States notes and treasury
notes. arnounting to probably less than
| $fs6.ccO.CVO. might be supplied by such gold
| as would be used on their retirement or by
an increase In the circulation OF our ma
tional banks. Though the aggregate cap
ital OF those now In existence amounts to
more than $50, 100. their outstanding cir
| culation, based on bond security amounts
70 only about SsOOco.OOO. They are author
lied to issue notes amounting TO 80 per
| cent. OF the bonds deposited to secure their
| circulation; but In no event beyond the
amount OF their capital stock. and they are
obliged to pay l per cent tax on the circu-
| lation they issue.
NATIONAL BANK CIRCULATION.
i think they ought to be allowed to issue
circulation equal to tie par value of the
| bonds they deposit TO secure It. and that
the tax on their circulation should be re-
duced to one-fourtn of 1 per cent. which
| would undoubtedly meet all the expenses the
government incurs on their account In adj
dition, they should be allowed to substitute,
L
as security for their circulation. those
which would be issued for the purpose of
retiring the United States notes and treas
ury notes. The banks already existing. 4
| they desired TO avail themselves of the pro-
| Visions or law thus modified, could issue
| circulation In addition to that already out
standing amounting to s47sW0,OCO. whit h
would nearly or quite equal the currency
proposed to be Cancelled. At any rate, /
snouid confidently expect to see the ex-
| fsting national banks, others to be or
| ganized, avail themselves of the proposed
announcements % Is ue cir eulaton and sup
| seemed to me that the provisions of law re-
garding the capital of national banks.
the suppression Of State banks. which came
country. and readily furnished them with
banking accommodations and facilities. In
convenience or embarrassment arising from
| tional banks might well be remedied by bet
ter adapting the. present system to the cre-
| alton OF banks in smaller communities,
| by permitting banks Of large capital to es-
tablish branches In such localities as would
Strained dne as people to Secure SO ssr and
sentative control and management
But there might not be the necessity for
Issues of bank circulation as at first glance
Is indicated If We should be relieved from
tha1 goia reserve under CONDITIONS
vency. and IL our treasury should no longer
| be the foolish purveyor Of gold for nations
abroad, or for speculation and boarding b.
our citizens at home, l should expect to
see gold resume its natural and normal
functions In the business affairs of the
| country, and cease to be an object at
tracing the timid watch of our people and
exciting their sensitive imaginations. / do
OF the treasury notes issued under the sil
yer purchasing act Of 1890 would leave the
treasury In the actual ownership Of suffi-
nearly $l1SOc0.tcJ In standard dollars. Ii is
worthy Of consideration. whether this night
not from time TO time be converted into dol
lars on. fractional coin, and slowly put into
ciIeulatlon, as N the Judgment of the Sec
rotary or the Treasury the necessities Of
the country should require.
Whatever is attempte.. should be entered
upon, fully approaching the fact that by
a dangerous depth. and that our effort viii
not be acc?mpl shed without laborious toll
and struggle. We shall be wise IL we real
lie that we are financially i'll, and that our
restoration to health may require heroic
treatment and unpleasant remedies.
THE IMPORTANT QUESTION
In the present stage of our difficulty it
Is not easy to understand that the amount
OF our revenue receipts does not directly
affect IT. The. important question is not
the quantity CT money received in revenue
payments. but the kind of money we main
tain, and our ability to continue in a sound
financial condition. We are considering the
government holding OF gold as related to
the soundness of our money, and as af-
fecting our national credit and monetary
strength. If our gold reserve had never
been impaired; il no bonds had been issued
to replenish it: IL there had been no fear
snd timiditys concerning our ability to
our revenues were paid in gold and
II we could look to our gold receipts as
the amount of our revenues would be an
influential factor in the problem. But. un-
might lend Weight to this considerable has
are entirely lacking. In Our present pre-
dcament no gold is received by the gov
nor would there be If the revenues were
increased. The. receipts of the treasury.
when not in silver certificates consist of
| United States notes and treasury notes
| issued for silver purchases.
These forms Of money only useful
I TO the government in paying it's current
ordinary expenses. and its quantity in
government possession does not in the
least contribute toward giving us that
kind OF a safe financial standing or con-
| dition which is built gold alone. If
10 Is said that these notes. IL held by the
ror our reserve. the answer is EASY IRE IRE
reople draw gold from the treasury on
demand upon United States notes and
the treasury can on demand draw gold
rom the people upon thsm, would be
amusement: and even If this could be
done. there is nothing to prevent those
| thus parting with their gold from regain
'rg Ii the next dav or the next hour by
the presentation of the notes they received
In exchange for it.
The Secretary of the Treasury might use
such notes taken from a surplus revenue
to buy gold in the market. OF course he
could not do this without paying a pre-
mium- Private holders of gold, unlike the
government have no parity to maintain
| and would not he restrained from maxi
| ing the best bargain possible when they
| Furnished gold to the treasury. But the
| moment the Secretary of the Treasury
| bought gold on any terms above par he
would establish a general and universal
premium uDon it, thus breaking down the
parity between gold and silver which the
government Is pledged TO maintain and
openi-g the way 70 new and serious com
! niira lions.
IT. the meantime the premium would no,
| remain stationary, and the absurd spec-
tacle might be presented OF a dealer sell
ing gold TO the government. and. with United
| States notes or treasury notes In his hand
Immediately clamoring for its return and
| a resale at higher premium. 1t may be
claimed that a large revenue and reduced
receipts might favorably affect the situa-
ton under discussion by affording an oppor-
tunity OF retaining these notes in the treas,
ury when received. and thus preventing
their presentation for gold. Such retention.
TO he useful. ought 10 be at least nfea SIRE.
| ably permanent, and this is precisely what
| is prohibited. so far as the United States
notes are concerned. The law of 1873 for.
| bidding their future retirement In so many
ceived into the treasury and belonging TO
the United States, shall be paid out again
| and kept in circulation
| rOIrJn NOT PAY OFT CIT WE'D ArO>-n