The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-01-22

TO create A POPULAR loan
Some Features of Senator Sherman'S S
Currency Bill.
EVERY ONE TO BUY A LITTLE
A Salutary Thing for the Public to Hold
the National Debt-It Would Re.
establish Credit; and Re.
plcnish the Treasury.

Washington, Jan. 2l.-The run of cur
rency bills which have followed that
framed by the secretary of the treasury
has not been of a character ito secure
the most serious or respectful atten-
tion. But a currency bill from John
Sherman naturally commands both. In
discussing the financial measure re-
Gently introduced by him, Senator
Sherman took occasion to disclaim for
it any of the partisan character, which
has come to be attributed to the new
currency measures. Moreover, ne
thinks the bill will solve the present diff
ficulty and gives his reasons as fol-
lows:
THE bill have introduced" said Mr.
Sherman, authorizes the secretary of
the treasury, in order to meet defficlen-
cies, to sell at discretion for coin at not
less than par the kinds of bonds author
lied in the redemption act of 1875, or
coupons or registered bonds of small
denomination bearing not more than 3
per cent. interest, redeemable in coin
at the pleasure of the government after
five years. In lieu of any of these
bonds, the secretary is authorized at
his discretion to issue certificates of in
debtedness of the United States, paya-
BILE in coin after five years at the treas
ury of the United States, in denomina-
,tion from $50 to 500, to bear interest at
3 per cent. l have no doubt in my
mind that if this authority We're given
the secretary he would avail himself of
the privilege of issuing these certiii-
Gates, which would be absorbed by the
people. They could be sold at all the
postofices, and / have no doubt that
if it should be required, certificates of
this character to the amount of $780,
OOOO 900 would be taken. After the pass
age of the redemption act, $50OOO,O 600
i'm certificates of indebtedness were
taken in one day. The estimated de-
ficiency for this year, which is about
$50, 900, 600, could be met with less than
l per cent. of the deposits in savings
banks, and l have no doubt that these
certificates would be readily taken for
investment by people who now deposit
their savings in these institutions. II
such a popular loan proved to be as
great a success as / believe it would be
the problem of floating government
loans in the future would be satisfac-
torily solved.
VIII Increase thc'Currcncy.
'My bill also provides for increasing
the volume of currency, as 1t allows
banks to issue to the par value of theil
bonds. This would not mean simply
an increase of 10 per cent, the differ
| % nf n
lowed by the present law and the pal
value of the bonds. but would NEAR
much more. The bonds would be cheap
er and the inducements to increas,
circulation would be much greater.
"The principal feature of my proposi
tion is that providing for the populal
! loans. When certificates of indebted
ness Were issued after the passage o
| the Resumption act of 1875, i was com
PEELED to limit the issue to each persoi
| to 800. l believe that in the light o
this experience if similar certificates
Were issued now, they would be takei
UP by the people who have saved small
sums from their earnings. While the!
would be convertible into bonds, and il
such form could be used as a basis o
circulation by national banks by de
posting them with the treasury, | hard
| ly anticipate that they would find thei
way very quickly into national banks
| believe that they would be held by tn
people the same as the French loan
are held. If our government debt wer
held by our own people ii would be ;
very satisfactory condition.
men, who seem to have some funn.
ideas about finance, take exception t
my bill because the word gold is no
substituted for coin in the provisio,
for the redemption of the bonds. Why
no such provision has been made il
! government bonds. There is no reaso
why it should be stipulated that loa
negotiated under this bill should b
paid in gold. This governments polio
is to maintain the parity of the tw
metals and there is no occasion for an
such change in the wording of OF,
bonds"
But how would your bill check tn
Withdrawals of gold from the treas
ury?" Senator Sherman was asked.
"In the first place." he replied, "a
distrust of this governments abilit
to maintain it's system of currenc
must be removed. So long as the treas
ury's revenues exceed the expenditure
there was no such drain as has bee
experienced. If a sufllciency of revenu
Is provided / have no doubt that tn
financial situation, as far as the goN
ernment is concerned, will be great
inprnypl ~