The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-02-02

amounting to nearly $500. 600, 900, there
will fall due in 1904 800. 900, 900 of bonds
issued during the last year for which
we have received gold and in 1907
nearly $500. 900. 900 of 4 per cent bonds
issued in 1877. Shall payment of these
obligations in gold be repudiated? II
they are to be paid In such a manner
preservation of our national honor and
national solvency demands we should
not destroy or ever imperil our abiI-
ity to supply ourselves with gold for
that purpose.
While am not unfriendly to sill
Yer. while / desire to see it recognized
to such an extent as lis consistent with
financial safety and the preservation of
national honor and credit, l am not
! willing to see gold entirely banished
from u currency and finances. To
avert such a consequence / believe
thorough and radical remedial legis-
lation should be promptly passed. !!
therefore beg congress to give the sub
ject immediate attention.
1t is my opinion the secretary of the
treasury should be authorized to issue
of the government for the pGr-
pose of procuring and maintaining suf-
fc1ent gold reserve and redemption
and cancellation of United States le.
gal tende notes and treasury notes is-
sued for the purchase of silver under
the law of July IA, 1890. We should be
relieved from the humiliating process
OF issuing bonds to procure gold TO b
Immediately and repeatedly drawn ont
on these obligations for Il purpose mt
related to the benefit of our govern
ment or people. The principal and in
terest of these ono should be pay
able on their face in gold or it's repre-
sentative and because there would now
probably be difficulty in favorably dis
posing of bonds not containing this
stipulation.
l suggest that bonds be issued in
denominations of $40 and $50 and their
multiples, n h a they zeal interest
at a rate not exceeding ) per cent
per annum. do not see why
they should not be payable fifty years
from their date. We of the present
generation have large amounts to pay
to meet our obligations and long bonds
are most sa!able. The secretary of the
treasury might well be permitted at
his discretion to receive on the sale of
bonds the legal tender and treasury
notes to be retired, and. of course,
when they are thus retired or redeemed
in gold they should be cancelled. These
bonds under existing avs could be de-
posted by national banks as security
for circulation; and such banks should
be allowed to issue circulation up to
the face value Of these or any other
bonds Sc deposited. except bonds
drawing only 2 per cent interest and
which sell in market at less thar par.
National banks should not be allowed
to take out circulating notes of a less
denomination han $40 and when such
as are now outstanding reach the treas
ury, except for redemption and re-
tirenent, they should be Cancelled and
notes of the denomination of $40 and
upward Issued In their stead and silver
certificates of denominations under
$40. AS a constant means for the main
tenance of a reasonable supply of gold
in the treasury the duties on imports
should be paid in gold, all other dues
to the government to be paid in any
other form of money.
[ believe all the propositions / have
suggested should be embodied in our
laws If we are to enjoy a complete re-
of a sound financial condi-
ton. They need not interfere with any
currency scheme providing for the in
crease Of the circulation mediums
through the agency of national or state
banks, since they can easily be adjusted
to such a scheme. Objection has been
made to the Issuance of interest bear
ing bonds for the purpose of securing
the noninterest bearing legal tender
notes. In point of fact, however, these
nntac have hny1a,al ,,c yu{tI /, 1,,s.
load of interest, and it is still ccumu-
lating. The aggregate interest on the
original issue of bonds the proceeds of
which in gold constituted the reserve
for payment of &4ese notes amounted
to $40, 326. $50 on January /, 1895. The
annual charge for interest on these
bonds and those issued for the same
purpose during h last year will be
SO, las, 900, dating from January /, 1895.
While cancellation of these notes would
relieve us from obligations already in
Cured on their account those figures
are given by way of suggesting that
existence has not been free from
interest charges and that the longer
they are outstanding, judging from the
experience of last year, the more ex-
pensive they will become.
In conclusion 1 desire to frankly
confess my reluctance to issuing more
bonds in the present circumstances nj
with no better results than have lately
accompanied that course. 1 cannot,
however. refrain from adding to an as
surance of my anxiety to cooperate
with the present congress in any rea-
sonable measure Of relief an expression
of my determination to leave nothing
undone which furnishes a hope for i'm
proving the situation or checking a sus-
picion of our disinclination or desira-
bility to meet with strictest honor
every national obligation.
Grover Cleveland.
Executive Mansion, Washington, jan
nary 2S 1Sg5