Evening journal., 1895-12-03

pflnclpio IS Daaed upon denial OF tne
right Of the movement to obstruct the
avenues to our peoples cheap living. or
lessen their comfort and contsntment,
for the sake of according special
advantages to fAvorites, and which,
while encouraging our intercourse with
other nations, recognizes the fact that
American self reliance. thrift and ingsDu
ity can build up our country's industries
and develop Its resources more surely
than ensrvAting pAtsrlsllsn.
Compulsory Purchase aud Coinage OF Sill
yer.
"rhe compulsory purchase and coinNge
OF silver by the government, unchecked
aud unrsgulated by business conditions
and needless of onr currency needs.
which for more the 6fteen years diluted
our circulating ~ dium, undermined
con hdsnce abroad IA our financial ability,
and at last illuminated In distress and
panic At home. has been recently stopped
By the repeal OF the laws which forced
those reckless schemes upon the
country"
Present Monetary Conditions.
The president reviews the different
financial laws that have been passed aud
exhaustively treats the present monetary
conditions he says; THE foregoing
statement Of events and conditions
develops the fact that after Increasing
eur interest bearlDg bonded Ia debted
ness more than $162 600, GOO TO save our
gold reserve. we ere nearly where We
started from, having such reserve $40
1913. 966 aa against $o5. ass 877 In Febru-
airy 1894, when the FIRST bonds were
issued"
The Only Remedy.
Continuing he says: Il am convinced
the only thorough and practicable remedy
from our troubles Is found ia the retire
ment and cancellation Of cur United
States notes, commonly called green
backs. and the outstanding treasury
notes issuso by the government ia pay
ing Of silver purchases under the act Of
1890 l believe this could be quite
readily accomplished by the exchange Of
these notes for United States bonds OF
small as well as large denominations,
bearing q low rate OF interest They
should be long term bonds. thus increas
ing their desirabiliuy as Investments and
because their payment could be well
postponed to period far removed from
present financial burdens and perplexties,
when with increased prosperity and
resources they would be more EASILY
met
To Cancel the Gold Demand Obligation.
ITO further insure the cancellation OF
these notes and also provide a way In
which gold may be added to our currency
In lieu OF them, 3 feature In the plan should
be an authority given to the Secretary
Of the Treasury TO dispose of the bonds
abroad for gold II necessary to complete
the contemplated redemption and can
collation., permitting him to use the
prooseds OF such bonds TO taks up and
cancel any OF the notes that may bo In
the Treasury or that may be reesivei BY
the government on any account The
incresee Of our bonded debt involved In
| this plan would be- amply compensated
/ by renswed sctivity aud enterprise In Rll
business circles the restored confidence
at home, the rslnststed faith Ia our
monetary strength abroad, and the
stimulation OF every interest and In
dustry that would follow the cancellation
OF the gold demand Obligations now
filicting us.
The currency withdrawn by the re
tirsment of the United States nstes and
Treasury notes, amounting to probably
less than $4S6, 600, 900. might bs supplied
by such gold rs would be used on the. r
retirement or by an increasing the cir
culation Of our national banks
About the NationAl Banks.
The President thinks that the national
banks should be allowed to issue clrcula
lion equal to the par value OF the bonds
they deposit to secure IL, and that the
tax on their circulation should be reduced
TO one-fourtb Of one par cent, which
would undoubtedly meet all the sxpsnse
the government incurs on their account
In addition they should be allowed TO
substitute or deposit in lieu of the bonds
now required as security for their cir
culatlon those which would he Issued for
tue purpose Of retiring the United States
notes and Treasury notes
eve Are Financially ILL.,"
Further on after suggesting the
means which be believes will put the
financial system Of the couu
| try on sound basis the Prssl-
dent says Whatever is attempted
should be entered upon fully appreclat
ing the fact that by careless, easy
descent we have reached a dangerous
| depth and that our ascent will not be
accomplished without laborious trial and
l struggle We shall be wiee II we realize
that We are financially III -and that our
restoration to health may require heroic
treatment and unpleasant remedies.
Il cannot but think there has been
some confusion Of ideas regarding the
/ effects OF the issue Of bonds and the
results OF the withdrawal OF gold. IL
was the latter process and not the
former that by substltuting IN the
Treasury Unted States notes aud
Treasury notes for gold increas ed
by their amount the money which was
In the frst instance subjeot to ordinary
government expenditures.
withdrawal Of Gold From the Treasury
Although the law com mpelling an IN
creased purchase Of silver By the govern .
ment was passed on the 14ih OF
July, 1890, Withdrawals OF gold from the
Treasury upon the notes given In pay.
ment on such purposes did not begin
until October, 1891 Immediately fol
lowing that date the Withdrawals upon
both those notes and u aited States bonds
Increased very largely aud have con-
tinued to such an, extent that since the
passage Of that law there has been more
than thirteen times as much gold taken
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