Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1895-12-07


easily met To further insure the cancellation
OF these notes, and also provide way In which
gold may be added u Our currency In lieu OF
them, o feature In the plan should be an au-
thority civ en- TO the secretary Of the treasury
to dispose OF the bonds abroad for gold, II nee
essary, to complete the contemplated redemp-
tiOn and cancellation permitting him TO uBe
the proceeds OF such bonds to take up and can
eel any OF the notes that may be In the treas
ury. or that may be received by the government
on any account. The increase OF our bonded
debt involved in this plan would be amply
compensated by received activity and enter
prise In all business circ es the restored conf
dence at home, the reinstated faith In our mon
etary strength abroad, and the stimulation OF
every interest and industry that would follow
the cancellation OF the gold-demand Obliga-
tions now 8fiiictng US.
In any event the bonds proposed would stand
for the extinguishment OF o troublesome in
debtedness while In the path We now follow
there turks the menace Of unendlng bonds
with our Indebtedness still undischarged and
aggravated In every feature. The obligations
necessary to find 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 sink
ing fund out OF our surplus revenues.
The currency Withdrawn by the retirement OF
the United States notes and treasury notes
amounting to probably less than $3.50, ,0O0,0 o,
might be supplied by such gold as would be
used In their retirement or by an increase In
circulation Of our national banks. Though the
aggregate capital Of those now In existence
amounts 70 more than &98i ,0Qo 900, their out
amounts to only about sl90OoO,0oo They are
authorized to Issue notes amounting to 20 per
cent. OF the bonds deposited to secure their cir
culation, but in no event beyond the amount of
their capital stock, and they ore obliged to pay
the per cent. tax on the circulation they issue
INCREASED NATIONAL BANK CIRCULATION
think they ought to be allowed to issue cir
culation equal to the par value OF the bonds
their circulation should be reduced TO one
fourth of one per cent, which would undoubt-
edly meet all the expenses the government in
ours on their account. In addition they should
be allowed to substitute or deposit In lieu OF
the bonds now required as security for their
circulation those which would be issued for the
purpose Of retiring the United States notes
lnd treasury notes. Tho banks already exist
ing, II they desired 10 avail themselves Of the
provisions OF law thus modified, could issue cir
culation In addition to that .already outstanding
amounting to $i75,000,cO0, which would nearly
or quite equal the currency proposed to be
cancelled. At any rate l should confidently
expect to see the existing national banks or
others to be organized avail themselves OF the
proposed encouragements to issue circulation
and promptly fill any vacuum and supply every
currency note. 1t has always seemed to me
that the provisions OF law regarding the capt.
tdi ol naplouai DunkS wnlcn operate as llml-
tation to their location fails to make proper
compensation for the suppression OF state
banks which came near To the people in all
sections OF the country and readily furnished
them with banking accommodations.
ANY inconvenience or embarra ssment aris-
ing from these restrictions on the location OF
national banks might well be remedied by bet
ter adapting the present system to the creation
OF banks III smaller communities, or by per-
mitting banks OF large capital to establish
hrp,
people, so regulated and restrained us to Sc
cure their safe and conservative control and
management. But there might not be the ne
cessity for such an addition to the currency by
new issues OF bank circulation Us at first
glance is indicated. II we should be relieved
under conditions that constitute it
the barometer OF our solvency,
and II our treasury should no longer be the
foolish purvevor Of gold for nations abroad or
for speculation and boarding by our citizens at
home, should expect 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 imagination.
THE SIT YER sEIGNIoRAGE.
l do not overlook the fact that the cancella-
tlon OF the treasury notes issued under the sill
treasury in the actual ownership OF sufficient
silver including seigniorage, to coin near
ly $l7s,0cO00O in standard dollars. 1t
Is worthy Of consideration whether
be converted into dollars or fractional coin,
and slowly put into circulation, as in the iudg
ment OF the secretary Of the treasury, the
necessities OF the country should require,
NOT QUESTION OF QUANTITY, BUT KIND.
In the prcscn Mt stage of our difficulty 10 is not
easy to understand the extent to which our
revenue receipts directly affects it. The i'm
received IN revenue payments. but the kind OF
money we maintain and our ability to continue
in sound financial condition. We are consid-
ering the government holding OF gold as re-
lated to the soundness and as affecting
our national credit and our monetary
strength. II our gold reserve had never been
impaired; If no bonds had been issued to re-
pleniSh II there had been no fear and tmidity
concerning our ability TO continue gold pay
ment. II any part OF our revenues were now
paid In gold, and II we could look to our gold
receipts as means Of maintaining safe re-
serve, the amount OF our reven les would be an
influential factor In the problem. But, unfor-
tunately, all the circumstances that might lend
weight to this consideration are entirely lack
ing. In our present predicament no gold is re-
celved by the government in payment OF reve-
nue. charges. nor would there be If the revenues
were increased. The r ceipts OF the treasury,
when not in silver certificates, consist of
United States notes and treasury notes issued
lOA StiNCI lutSt vi ulcucy dit
only useful to the government in paying its cur
rent ordinary expenses, and its quantity
In government possession does not in the least
contribute toward giving US that kind OF safe
financial standing or condition which Is built
on gold alone. II IL is said that those notes II
held by the government can be used to obtain
gold for our reserve, the answer is easy. The
people draw gold from the treasury on demand
upOn United states notes and treasury notes,
but the proposition that the treasury can on
dnNr I'm
would be regarded in these days with wonder
and amusement, and even IL this could be done
there is nothing 10 prevent those thus parting
with their gold from regaining it by the next
day or the next hour by the presentation OF the
notes they received In exchange for 1t,
The secretary OF the treasury might use such
notes taken from surplus revenue to buy
gold in the market. or course he could not do
this without paying a premium. Private hold
ers OF gold, unlike the government, having no
parity to maintain, would not be restrained
from making the best bargain possible when
they furnished gold to the treasury; but the
moment the secretary OF the treasury bought
gold on any terms above par he would estab-
fish general and universal premium upon it.
thus breaking down the parity between gold
and silver. which the government Is pledged to
maintain, and opening the way to new and
serious complications,
In the meantime the premium would not re-
main stationary and the absurd spectacle
the government and with United States notes
or treasury notes in his hand Immediately
clamoring for It's return and u resale at Il
higher premium 1t may be claimed that o
large revenue and reduced receipts might
favorably affect the situation under discussion
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 pre-.
n iSalu 10 fa1 fu nj ta1
States notes are concerned by the law Of 1878
forbidding their future retirement.
NO FEARS OF OUR soLvENcY,
Perhaps it is supposed that sufficient revenue
receipts would, in u sentimental way, improve
tho situation by inspiring confidence in our
solvency and allaying the fear OF pecuniary
exhaustion and yet oil through our struggle to
maintain our gold reserve there never has been
any apprehension as to our ready ability TO pay
our way with such money us we had, and the
question whether or not our current receipts
met Our current expenses entered into the es-
innate OF our sovency. or course the general
state Of our funds, exclusive OF gold, was en-
tirely immaterial TO the foreign creditor and
investor. His debt could only be paid In gold,
and his only concern was our ability to keep
on hand that kind Of money.
On July l, 1892, more than o year and half
before the first bonds were issued, to repl nlsh
the cold reserve, there was u net balance In the
treasury, exclusive OF such reserve, OF less
than Sl3.tO0,000, but the gold reserve amounted
to more than $llt,M000J, which was the quiet
ing feature Of the situation. 1t was when the
stock Of gold began rapidly 10 fall that fright
supcrvencd, and our securities held abroad
were returned for sale. and debts owed abroad
were pressed for payment In the meantime
extensive shipments Of gold ana other un-
favorable indications caused restlessness and
fright among our people ut home,
THE BOARDING OF GOLD.
TheraunOn the general state af our funds
exclusive OF gold, became also immaterial to
them, and they, too, drew gold from the treas
ury for boarding against oil contingencies.
This Is plainly shown by the large increase In
tho proportion OF gold withdrawn which was
retained by our own people as time and threat