The Caucasian. (Clinton, N.C.) 188?-1913, 1895-12-12

notes for
UNITED STATES BONDS
OF small as.well as large denomina-
lions, bearing a low rate of interest.
They should be long-term bonds, thus
increasing their desirability ~ invest
ments and because their payment
could be well postponed to a period
| Tar removed from present financial
burdens and perplexities, when, with
| increased prosperity and resources,
they could be more easily met.
To further insure the cancellation OF
these notes and also provide way by
which gold may be added TO our cur
rency in lieu Of them, a feature OF the
plan should be an authority given to
the secretary Of the treasury TO dispose
Of the bonds
ABROAD FOR GOLD,
il necessary, to complete the cOntem-
plated 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 nay be received by the govern
| ment on any account. The increase of
would be amply compensated by re-
newed activity and enterprise in all
business circles, the restored conf
| dence at home, the reinstated faith i'm
| our monetary strength abroad, and the
| stimulation Of every interest and in
dustry that would follow the cancella-
tiOn of the gold demand obligations
now affecting US.
In any event the bonds proposed
would stand for the extinguishment of
Ia troublesome Indebtedness, while in
the path we now follow. turks the
| MENACE OF UNENDING BONDS,
| with our Indebtedness still undis-
ture. The obligations necessary to
fund this Indebtedness would not
equal in amount those from which we
have been relieved since 1884 by antic-
ipatiOn and payment, beyond the re-
quirements Of the sinking fund, out of
our surplus revenues.
| The currency withdrawn by the re-
tirement of the United States notes
and treasury notes, amounting to pro-
badly less than 1886, 100000, might be
supplied by such gold as would be used
on their retirement or by an increase
in the circulation
| OF OUR NATIONAL BANKS.
Though the aggregate capital of
those now in existence amounts to
more than $685., 100000, their Outstand-
ing circulation based on bond security
amounts to only about $19O,QOO,OOO.
They are authorized to issue notes
Amounting to 30 per cent. of the bonds
deposited to secure their circulation,
but in no event beyond the amount of
their capital stock, and they are obliged
to pay l per cent. tax on the circuIa-
tiOn they issue.
l think they should be allowed to is
sue circulation equal to the par value
of the bonds they deposit to secure it,
and that the tax on their circulation
should be
REDUCED TO a OF PER CENT.
which would undoubtedly meet all the
expense the government incurs on
their account. In addition they should
be allowed to substitute or deposit in
lieu of the bonds now required as secu-
rity for their circulation, those which
would be issued for the purpose of re-
firing the United States notes and
treasury notes.
The banks already existing if they
desired to avail themselves of the pro
visions of law thus modified, could is'
sue a circulation in addition to thai
already outstanding, amounting tt
$47S, 100000, which would nearly OF
quite equal the currency proposed tt
be cancelled. Atany rate l should con
fdentially expect to see the existing
national banks or those to be organized
to avail themselves of the proposed EN-
cOuragements
, TO ISSUE A CIRCULATION,
t and promptly fill any vacuum and sup
2 ply every currency needed.
But there might not be the neCessit,
> for such an addition to the currency b,
' new issues of bank circulation as at
{ first glance is indicated. If we shOult
e be relieved from
MAINTAINING GOLD RESERVATION
under conditions that constitute it th
barometer of our sOlvency, and if Ou
y treasury should no longer be the tOOlisI
purreyOr of gold for nations abroad, or TO
speculation and boarding by our citi
y zens at home, 1 should expect to Sc
gold resume its natural and norma
functions in the business affairs of tn
: country and cease to be an object at
: tracting the timid watch of our peOpl
d and exciting their sensitive imagina
r tiOns.
| do not overlook the fact that tn
cancellations of the treasury notes is
e sued under the silver purchasing act o
1890 would leave the treasury in the &C
tual ownership of sufficient silver, in
Il cluding seigniOrage, to
y, COIN NEARLY $17S 100000
d in standard dollars. 1t is worthy {
i consideration whether this might no
e from time to time, be converted int
0. dollars or fractional coin and slOwl
- put into circulation, as In the judgmer
d of the secretary of the treasury, tn
n necessities of the country should re
ID quire.
What is attempted should be entere
IS upon fully appreciating the fact ths
,e by careless, easy decent we have reach
" ed dangerous depth and that our a.
cent will not be accomplished withO,
laborious toll and struggle. We sha
Id be wise if we realize that
WE ARE FINANCIALLY
as and that our restoration to health ma
ID require heroic treatment and unplea
es ant remedies. In the present state
ne our difficulty it is not easy to unde
!e, stand how the amount of our reven,
It. receipts directly affects it.
We The important question is not Il
er quantity of money received in reven'
ms payments, but the kind Of money '
'ir maintain and our ability to cOntin'
IN in sound financial condition. We a
Ia considering the governments hol
ings of gold as related to the SCUM
as ness of our money and as affecting OF
OF national credit and monetary strengt
If
eI OUR GOLD RESERVE
,se had never been impaired; so if
w. bonds had ever been issued to reple
en- ish it; if there had been no fear al
,at timidity concerning our ability to co
n tinue gold payments; if any part
,r- our revenues were not paid in go
o. and if we could look to our gold
nd ceipts as a means of maintaining
it safe reserve, the amount of our rev
| u.oa ,uo,,l1 ~, Anonfio1 fQotOr