Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1895-12-11

uudl interest cnarge or such bonded IN.
debtedness il more than s11,O000O0, that
continuance in our present eourse
may result in further bond issues
and that we have suffered or are threatened
with all this for the sake of supplying gold for
foreign shipment or facilitating its hoarding at
home, situation is exhibited which certainly
ought to arrest attention and provoke immedi-
ate Legislative relief l am convinced the only
thorough and practica able remedy for our trou-
bles is found in the retirement and cancellation
OF our United States notes. commonly called
greenbacks and the outstanding treasury notes
issued by the government in payment of silver
purchases under the act OF 1890.
L believe this ould be quite readily accom-
pilshed by the Q exchange of these notes for q. S.
bonds of small as well as large denominations
bearing a low rate OF interest They should be
long term bonds, thus increa sing their desr-
ability as investments and because their pay
ment could be well postponed to a period far
removed from present financial burdens and
pefpfsx1tles when with inc reased DIT r,sperity
and resources they would be more easily met
10 further insure the cancels alton of these
notes and also proviie a way by which gold
may be added to our currency in lieu of them,
o feature In the plan should be an autl ority
given to the Secretary of t'.e Treasu y
70 dispose of@the bonds abroad for gold il
necessary, to complete the contemplated re-
demption and cancellation permitting him use
OF the proceeds of such bonds to take up and
cancel any of the notes that may be in the
treasury or that may be received by the gov
ernment on any account The increase of our
bonded debt involved in this plan would be
amply compensated by renewed activity and en-
terprise in all business circles the restored
confidence at home, the reinstated faith in our
monetary strength abroad. and the stimulation
OF every interest and industry that
would follow the cancellation of the
goio demand obligations now affecting rs.
In any event the bonds proposed would stand
ior the extinguishment of a troublesome in
debtedness, while in the path we now follow
there turks the menace of unending bonds with
our Indebtedness still undischarged and aggra-
waited In every feature The obligation neces-
sary to find this indebtedness would not equal
In amount those from which we have been re-
lleved since 1884 by anticipation and payment
beyond the requirements of the sink ing fund
out OF our surplus revenues. The currency
Withdrawn by the retirement of the
United States notes and treasury note,
amounting to probably less than S6,0)O,OO0
might be supplied by such gold as would be
used on their retirement by an increase in
lrregulation OF our Nat ional banks. Though
the aggreg ate capital of these now In existence
amounts to moro than $6j60o0,OO0. their out
standing circulation based on bond security
amounts to only about $4,000, ,OO0 They are
authorized to issue notes amounting 10 ninety
per cent of the bonds deposited to secure their
circulation, but in no event beyond the amount
OF their capital stock they are Obliged to nav
one per cent tax on the circulation they issue.
/ think they ought to be allowed to issue cir
culatlon equal to the par value of the bonds
they deposit to secure it, and that the tax on
their circulation should be reduced to one
fourth OF one Per cent, which would undoubt-
edly meet all the expenses the cover nment
would incur on their account. In addition
they should be allowed to substitute or deposit
IN lieu OF the bonds now required as security
Tor their circulation those which would be is
sued for the purpose of retiring the United
SfQfno NOT nd trao
already existing, if they desired to avail Them
selvesw OF the provisions of law
thus modified could issue circulation
in addition to that already outstanding,
amounting to S47S, 90 900, which would nearly
or quito equal the currency proposed to be
cancelled. At any rate, should confidently ex-
pect to see tho existing national banks or
others to be organized avail themselves of the
proposed announcements to issue circulation
and promptly fill any vacuum and supply every
currency need. 1t has always seemed to me
that the provisions of law regarding the cap
1tal OF national banks which operate as a linn
itation to their location fails to mako proper
compensation for the suppres sion of state
banks, which came near to the people in all sec
t1ons OF the country and readily furnished
them with banking accommodations and
facilities.
Whatever is attempted should be entered
upon fully appreciating the fact that by care
less, easy descent, we have reached a dangerous
ueptn ana tnat our ascent WILL not ha
comp1shed without laborious toll and struggle.
We shall be wise if we realize that we are
financially ill and that our restoration to
health may require heroic treatment.
lnasmuch as the withdrawal of our gold has
resulted largely from fright there is nothing
apparent that will prevent its continuance or
recurre nee. with its natural consequences, ex-
ccpt such a change in our financial me thods as
Will reassure the frightened and make the de-
sire for gold less intense. 1t is not clear how
an increase in revenue, unless it be in gold and
satisfactory to those whose only anxiety is to
gain gold from the governments store II can
not, thcr efore, be slfe to rely upon increased
revenues as a cure for our present
troubles. 1t is possible tia the suggestion of
increased revenue q remedy for the difficult
ties we are considering may have originated in
an intimation distinct allegation tn at the
bonds which have been issued ostensibly to
replsnish our gold reserve were really issued
to supply insufficient revenue. Nothing can be
further from the truth. Bonds were issued to
| obtain gold for the maintenance OF our natioual
| credit.
Free Silver.
While have endeavored to make a plain
statement of the disordered condition of our
currency and the present dangers menacing our
prosperity and to suggest a way which
lea Is to safer financial system
l have constantly had in mind the fact tina {
many OF my countrymen, whose sincerity do
not doubt insist that the cure for tie ills now
| threatening may be found in the single and
| simple remedy of the FREQ coinage of silver.
They contend that our mints shall be at once
| tEr)wn open to the free and unlimited and
| independent coinage of both gold and silver
dollars of full legal tender quality, regardless
OF the action OF any other gov, rnment and in
| full view of the fact that the ratio between
| the metals which they suggest calls for one
hundred cents worth of g Id in the gold dollar
at the present standard aud only fifty cents in
| intrinsic worth of silver In the silver dollar
In the present sta 20 of our difficulty it is not
| easy to understand how the amount of our rev.
| enue receipts affects it. The important ques-
| ton is not the quantity of money received in
revenue payments, but the kind of money we
maintain and our ability to continue in sound
| financial condition. We are considering the
| government holding of gold as related to the
soundness OF our money and as affecting our ma
| donal credit and monetary strength. If our cold
reserve had never bean impaired; If no bonds
| had ever been issued to Ieplenish if there had
been no fear and timidity concerning our abil-
| ity to continue gold payment; il any part
OF our revenues were now paid In gold,
and ii we could look to our gold receipts as a
means of maintaining a safe reserve the
amount OF our revenu would be an influential
| factor In the problem But unfortunately all
| the circumstance that might lend weight to
this considera ton are entirely lacking. In our
present predicament no gold Is received by the
government in payment Of revenue charges
| nor would there be If the revenues were in
creased 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 are
only useful to the government in paying its
current ordinary expenses aud its quantity