New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-04

isao a. ,eriod Of more thar eleven years.. only a
little over s2SO00.000 was Withdrawn anu - 90
between July a. 1890 the date OF the passaee "a
the law for an increased purchase OF silver anu
December l. 1895 or within less than hNe " sS-5
half years. there was Withdrawn near, ,ds 900 ooo
600 900, making total OF more IMAM syu,,orv
drawn from the Treasury in gold since January
/. 1879, the date Fixed in 1873 for the re''e'"'"'
of the United States notes ,,.arovp
Nearly 1927. 900 900 Of the gold thus wi'hu'a ".
has baen Maid ont on these United States notes
and vet ever one Of the SS46 10000 Is sun ui,
cancelled and ready % do service In FUTURE e'''
More than SIG 100000 in gold has. Stree tnelr
creation In 1890. been paid out from the lIe"s
Try upon the notes gwen on ',e ~. .ho whole
/ an,ountinp to V55 600 ooO except little more
than SIC OO000. which have been rtured by eN-
changes for silver at ne reques. OF et o,n their
remains outstanding and prepared 10 JON .ne,,
olae- and more experienced allies In future raius
upon the Treasury's gold reserve +,
In other words the Government has pald Ia
cold -,ore than nlne-tenths OF It's United states
notes and stu owes them all. II has paid In god
about one-half OF its notes given for silver pui
chascs without extinguishng by such payment
one dollar Of these notes ...
When added to all this we are reminded 'hat
TO carry on this astounding financial scheme tile
Government has incurred bonded Indebtedness
/ of s95 500 600 in establishing gold reserve, ana
Of sligo 315 400 In efforts to maintain II; that the
annual interest charge on such bonded inoepteu,
ness is more than 81 100000; that continuance
In orr present course may result in further DOnd
issues and that we have suffered or are threat
With a this for the sake or SnnplNlNb
gold for foreign shipment or facilitating It's
boarding AT home a situation is exhibited which
certainly ought to arrest attention ana pro-
woke immediate legislative relief
THE REMEDY. THE RETIREMENT OF THE
GREENBACKS.
am convinced the only thorough and prac-
,ical remedy for our troubles is found In the re-
tirement and cancellation Of our United States
notes commonly called greenbacks and the out
standing Treasury notes issued by the Govern
ment in payment of silver purchases under the
act Of 1890
believe this could be quite readily accom-
plshed by the exchange of these notes for United
states bonds of small. as well as large, denoini-
nations bearing low rate OF interest,". Ihey
should be long-ter bonds. thus increasing their
dasira hilitv as investments and because their
navment could be we'll postponed to period
far removed from present financial burdens ah1
nerpexities when with increased prosperity ana
resources they would be more easily met:
To further insure the cancellation OF these
notes and also provide way by when sou
may be added to our currency in lieu OF then,
given 70 the Secretary of the Treasury to dis
pose of the bonds abroad for gold II necessary
10 complete the contemplated redemption anu
cancellation. permitting him to use The proceeds
/ ~ 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 $500 ,,.s
The increase Of our bonded debt involved
in this plan would be amply compe nsated by re-
newed activity and enterprise IN All business ESQ
circles the restored confidence at home, the
reinstated faith in our monetary strength ABROAD
and the stimulation of every interest ana IN
dustry that would follow the cancellation OF tiie
gold demand obligations now aiiilctlng US. III
any event the bonds proposed would stahu LOT
the extinguishment Of a troublesome indebted-
ness while in the path we now follow there lurks
the menace of unerdng bonds. with our lndeDt-
edness still undischareed and aggravated IN
every feature. The obligations necessary to fund
this Indebtedness would not equal IN amount
those from which we have been relieved since
1884 by anticipation and payment, beyond the
requirements Of the sinking fund, out or our
surplus revenues.
GOLD AND BANK NOTES TO TAKE THEIR
PLACE.
The currency withdrawn by the retirement OF
the United States notes and Treasury notes,
amounting to probably less than s4S6,OoO'Ooo
might be supplied by such gold would be used
on their retirement or by an increase in the cir
culation of our National banks. Though the
aggregate capital of those in existence
amounts to more than 1904 900 00O their out
standing circulation based bond security
amounts to only about sl9O,OO0,OoO. They are
! authorized to issue notes amounting 10 30 per
cent of the bonds deposited to secure their CIR
culatOn, but in no event beyond the amour
of their capital stock and they are oDhged 10
pay per cent tax on the CIRCULATION they lsshe'
/ | think they should be allowed TO issue circu-
lation equal to the par value Of the bonds they
deposit to secure II, and that the tax on their
/ circulation should be reduced TO one-fourth OF
] per cent which would undoubtedly meet all
the expense the Government incurs on their ac-
count. In addition they should be allowed TO
substitute or deposit in lieu Of the bonds now re-
qured security 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 provisions Of law thus
modified could issue circulation in addition to
J hat OH EX ont = u
0OO which would nearly or quite equal the cur
rency proposed to be cancelled. At any rate. l
should confidently expect TO see the existing Ma
tional banks others to be organized avail
themselves Of the PROPOSED encouragements to
issue circulation. and promptly fill any vacuum
and supply every currency need.
1t has always seemed TO me that the provis-
ions Of law regarding the capital Of National
banks which operate as limitation to their To-
cation fail to make proper compensation for
the suppression Of State banks, which came
near to the people in ali sections of the country
and readily furnished them with banking ac
commodations and facilities. Any inconvenience
or embarrassment arising from these restrictions
on the location of National banks might we'll be
remedied by better adapting the present system
TO the creation of banks in smaller communities
or by permitting banks Of large capital to estab-
sh branches in such localities would
the people-so regulated and restrained as TO
secure their safe and conservative control and
management
IF GOLD RESUMED ITS NORMAL PLACE.
But there might not be the necessity for such
an addition to the currency by Issues OF
bank circulation at first glance is indicated.
II we should be relieved from maintaining a
gold reserve under conditions that constitute 1t
the barometer Of our solvency, and If our Treas
ury should no longer be the foolish purveyor
Of gold for nations abroad or for speculation and
boarding by our citizens at home. should ex-
pect to see gold resume its 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
maginations.
| do not overlook the fact that the cancella-
/ ton Of the Treasury notes issued under the
Silver Purchasing act Of 1880 would leave the
/ Treasury in the actual ownership Of sufficient
silver including seigniorage, to coin nearly $17S,
600 900 in standard dollars 1t is worthy Of con-
sideration whether this might not, from time