Connecticut western news., 1895-12-05


 sity of the Issuance of bonds, and suggests a remedy for present difficulties The following are the salient features of this portion of the document:
 The compulsory purchase and coinage of silver by the government, unchecked and unregulated by business conditions and needless of our currency needs, which for more than 15 years diluted our cirou- iating medium, undermined confidence abroad in our financial ability and at last culminated In distress and panic at home, have been recently stopped by the repeal of the laws which forced this reckless scheme upon the country.
 The things thus accomplished, notwith- standing their extreme importance and benefcent effects, fall far short of curing the monetary evils from which we suffer as result of long indulgence In i'll ad- vised financial expedients
 A Remedy surrssted-
 am convinced the only thorough and practicable remedy for our troubles is of our United States notes commonly called greenbaoks and the outstanding treasury notes issued by the government in payment of silver purchases under the act of 1890.
 1 believe this could be quite readily ao- complished by the exchange of these notes for United States bonds of small as we'll as large denominations bearing low rate of interest They should be long term bonds, thus increasing their desirability as investments. and because their pay ment could be we'll postponed to period far removed from present financial bur dens and perpl6xitles, when with inorea sed prosperity and resources they would be more easily met
 To further insure the cancellation of these notes and also provide a way by which gold may be added to our currency in lieu of them, a feature in the plan should be an authority given to the secre- tary of the treasury to dispose of the bonds abroad for gold if necessary to com plete the contemplated redemption and cancellation, permitting him to use 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 government on any account
 Increase of Bank Circulation.
 Tho currency withdrawn by the retire ment of the United States notes and treas ury notes, amounting to probably less than $4S6, 000, 900, might be supplied by such gold as would be used on their retire ment or by an increase in the circulation of our national banks Though the az gregate capital of those now in existence amounts to more than $664. 000, 900, their outstanding circulation based on bond se- curity amounts to op'y about s190 0e0,- 900. They are authorized to issue notes amounting to 90 per cent of the bonds de posited to secure their circulation, but in no event beyond the amount of their capi- tai stock, and they are obliged to pay per cent tax on the circulation they issue.
 think they should be allowed to issue circulation equal to the par value of the bonds they deposit to secure it. and that the tax on their circulation should be re- duoed to one-fourth of per cent which would undoubtedly meet all the expense the government incurs on their account. In addition they should be allowed to sub stitute or deposit in lieu of the bonds now required as security for their circulation those which would be Issued for the pur- pose of retiring the United States notes and treasury notea
 The banks already existing. if they de- sired to avail themselves of the provisions of law thus modified, could issue oircula- tion in addition to that already outstand- inR. amounting to e47s, 00o. 900, which would nearly or quite equal the currency proposed to be cancelled. At any rate, l should confidently eIpeot to see the exist ng national banks or others to be organ zed avail themselves of the proposed en- couragements to issue circulation and promptly fill any vacuum and supply ev- cry currency need
 Use For Accumulated Silver.
 do not overlook the fact that the can collation. of the treasury notes issued un- der the silver purchasing act of 1890 would .eave the treasury in the actual ownership of sufficient silver, including seigniorage, 10 coin nearly $178, ,00O 900 in standard dollars. It is worthy of consideration whether this might not, from time to 'ime be converted into dollars or frao- tional coin and slowlyput into oiroula- lon, as in the judgment of the secretary of the treasury the necessities of the ooun- try should require
 In the present stage of our difficulty it Is not easy to understand how the amount of our revenue receipts directly affects 1t. The important question Is not the quan- ity of money received in revenue pay ments, but the kind of money we main ain and our ability to continue in sound nanoial condition. We are considering The governments holdings of gold as re- ated to the soundness of our money and IS affecting our national credit and none tary strength.
 In conclusion I especially entreat the peoples representatives in the congress, who are charged with the responsibility of inaugurating measures for the safety and prosperity of our common country, to promptly and effectively consider the ills of our critical financial plight have sug- gested remedy which my judgment ap- proves. I desire, however. to assure the congress that am prepared to cooperate with them in perfecting any other meas ure promising thorough and practical re- lief, and that I will gladly labor with them in every patriotic endeavor to fur ther the interests and guard the welfare of | our oountrymen whom in our respective places of duty we have undertaken to serve