Eagle River Democrat. [volume] (Eagle River, Vilas County, Wis.) 1893-1896, 1895-12-09

The banks already existing, If they de-
sired to avail themselves of the provisions
Of law thus could issue
amounting to $478, O00 600, which would nearly
or quite equal the currency proposed to pc
cancelled. At any rate, | should confidently
expect to see the existing national banks or
others to be organized avail themselves OF
the proposed announcements to issue CIR,
culatioa and promptly fill any vacuum ana
supply every currency needed.
Competition of State Banks.
It has always seemed to me that the pro-
visions of law regarding the capital Of ma
tional banks, which operate limitation
to their location fail to make proper COM
which came near to the people, in all sec,
lions of the country and readily furnished
them with banking accommodations ana IA
cilities. Any inconvenience embarrass-
ment arising from these restrictions On the
location of national banks might well be
remedied by better adapting the present sys-
TEN to the creation of banks in smaller COM
munities or by permitting banks OF large
capital to establish branches in such local1-.
ties as would serve the people-so reguiateo
and restrained as to secure their safe ana
conservative control and management-Dut
there might not be the necessity for such an
addition to the currency by new issues OF
bank circulation as at first glance is lnol-
Gated If we should be relieved from MAIN
tanning gold reserve under conditions tnat
constituted it the barometer OF our solvency
and if treasury should no longer be the
foolish purveyor of gold for nations abroad
or for speculation and boarding by our CHI,
zens at home. should expect to see goio
resume it's natural and normal functions IN
the business affairs of the country and cease
to be an object attracting the timid watch OF
our people and exciting their sensitive lmagl-
nations.
I do not overlook the fact that the can
collation. of the treasury notes issued under
the silver purchasing act of 1890 would leave
ficient silver including seigniorage, to coin
nearly $178000,000 in standard dollars 1t Is
worthy of consideration whether this might
not from time to time be converted into dol
lars or fractional coin and slowly put into
circulation, as in the judgment of the secre-
tary of the treasury the necessities OF the
country should require.
Whatever is attempted should be entered
upon fully approaching the fact that by
dangerous depth and that ascent will not
be accomplished without laborious toll ana
struggle. We shall be wise if we realize that
we are financially i'll and that our restora-
top to health may require heroic treatment
and unpleasant remedies.
In the present stage of our difficulty 1t is
not easy to understand how the amount OF
our revenue receipts directly affects it. The
important question 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 conditions. We
are considering the governments holdings OF
gold as related to the soundness OF our money
and as affecting our national credit and mon
etary strength.
If our gold reserve had never been i'm
paired or if no bonds had ever been issued
to replenish it; if there had been no fear
and timidity concerning our ability to con-
tinue gold payments if any part of our reve-
nues were not paid in gold and II we could
look to our gold receipts as a means OF main
tanning a safe reserve, the amount OF our
revenues would be an influential factor in the
stances that might lend weight to this con-
sideration entirely lacking. In our pres
ent 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 consists 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, and its quality In
government possession does not contribute
| toward giving us that kind of safe financial
| standing or condition which is built on gold
alone. If it is said that these notes, II held by
| the government, can be used to obtain gold
| for our reserve, the answer is easy. The peo-
| pie draw gold from the treasury on demand
upon United States notes and treasury notes,
| but the proposition that the treasury con on
demand draw gold from the people upon them
would be regarded in these days with won
| der and amusement. And even If this could
| thus parting with their gold from regain
| ing it next day or the next hour by the pre-
sentation of the notes they received in ex-
change for it,
The secretary Of the treasury might use
such not taken from surplus revenue to
buy gold in the market. Of course, he could
not do this without paying premium. Pri-
vate holders of gold, unlike the government,
having no parity to maintain, would not be
restrained from making the best bargain pos
| sible when they furnished gold to the treas
ury, but the moment the secretary Of the
treasury bought gold on any terms above par
he would establish general and universal
premium upon it, thus breaking down the
parity between gold and silver which the
government is pledged to maintain and open
ing the way to new and serious complica-
| lions.
In the meantime the premium would not
remain stationary and the absurd spectacle
| might be presented of a dealer selling gold
to the government and with United States
or treasury notes in his hand, Immediately
clamorng for its return and resale at a
higher premium 1t may be claimed that a
favorably affect the situation under discus
sion by affording an opportunity of retaining
these notes in the treasury when received
and thus preventing their presentation for
gold. Such retention to be useful ought to
be at least measurably permanent, and this
is precisely what is prohibited, so far as the
United States notes are concerned, by the
law of 1878 forbidding their further retire
men& That statute in many words, pro-
vides that these notes, when received into the
treasury and belonging to the United States
shall be "paid out again and kept in circula-
tion.''
Parity Must BE Maintained.
It will moreover be readily seen that the
government could not refuse to pay out
United States notes and treasury notes in
current transactions when demanded and in
sist on paying out silver alone and still
| maintain the parity between that metal and
the currency representing gold. Besides, the
accumulation in the treasury Of currency of
any kind eXacted from the people through
taxation is justly regarded as evil and
! cannot proceed far without vigorous protest
against unjustifable retention Of money
from the business of the country, and a
| denunciation of a scheme of taxation, which
proves itself to be unjust when it takes from
the earnings and income of the citizen money
so much in excess of the needs of the gov
ernment's support that large sums can be
gathered and kept in the treasury. Such a
condition has heretofore in times Of surplus
revenue led the government to restore cur
rency to the people by the purchase of it's
| unmatured bonds at large premium and
by a large increase of it's deposits in ma
tional banks, and we easily remember that
the abuse of treasury accumulation has fur
nished most persuasive argument in favor
of legislation radically reducing our tariff tax
alton.
Perhaps it is supposed that sufficient reve-
nue. receipts would in a sentimental way i'm
prove the situation by inspiring confidence in
our solvency and allaying the fear of Pc
/