Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1895-12-14

plan would be amply compensated by re-
newed activity and enterprise in all bust
ness circles. The restored confidence at
home, the reinstated faith in our none
tary strength abroad and the stimulauon
of every interest and industry would fol-
low the cancellation of the gold demand
obligations now affecting us.
In any event the bonds proposed would
stand for the extinguishment of a trouble
some Indebtedness. while in the path we
now follow there turks the menace OF un-
ending bonds with our Indebtedness still
undischarged 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 pay
ment, but the requirements of a sinking
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currency Withdrawn by the retirement OF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
siS5. coo. 600 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 these now In existence amounts
TO more than s6ei, coo, 900, their outstanding
circulation based OH bond security
amounts 10 only about 100. o.o1 They
are authorized to issue notes amounting
10 80 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 10 pay ] per cent
tax on the circulation they issue.
/ think they should be allowed TO issue
circulation equal 10 the par value of the
bonds they deposit 10 secure 1t and that
the tax or their circulation should be
reduced TO one fourth of / per cent,
which would undoubtedly meet all the
expense the government incurs on their
account. In addition they should be hi
lowed TO substitute or deposit in lieu OF
the bonds now required as security for
their circulation their notes which
would be issued for the purpose of retir-
ing the United States notes and treasury
notes. The banks, already existing, il
they desired to avail themselves of the
provisions Of the law thus modified
could issue circulation in addition to
that already outstanding. amounting TO
$47S, GOO, 600, which would nearly or quite
equal the currency proposed TO be can
celled. At any rate, | should confidently
expect TO see the existing national banks
or Others 10 be organized, vail them
selves Of the proposed encouragements
to issue circulation and promptly fill any
vacuum and supply every currency.
IL mas always SScI.ltu W Nv lHdi Alst
provisions OF law regarding the capital
of national banks which operate as a
limitation to their location fail 10 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 and facilities. Any in
convenience or embarrassment arising
| from, thaSa raStri1finnc ~ fha location, nf
national banks might well be remedied
by better adapting the present system
tenn to the creation Of banks in smaller
communities or by permitting banks OF
large capital to establish branches in
such localities as woul serve the people,
so regulated and restrained as to secure
their safe and conservative control and
management. But there might not be
the necessity for such an addition TO the
currency by new issues OF bank circu-
lation as at first glance is indicated. II
we should be relieved from retaining a
gold reserve under conditions that con
strue IL the barometer of our solvency,
and If our treasury should nc longer be
the foolish purveyor of gold for nations
abroad or for speculation and boarding
by our citizens at home, / should expect
to see gold resume its atura and nor
NAL functions In the business affairs Of
the country and cease to be an object of
fear to the timid of u people.
Revenue Receipts No Help.
In the present stage of our difficulty
1t Is not easy to understand how the
amount Of our e receipts directly
affects II. The important question is
not the amount of money received in
revenue payments but the kind of mony
we maintain and our ability to continue
I'm sound financial condition. We are
considering the governments holdings
Of gold as relating to the soundness OF
our money and as affecting our nation
al credit IN monetary strength. L.
our gold reserve had never been i'm
paired or II no bonds had ever been is
sued to replenish II. X there had been no
ear and timidity concerning our ability
to continue gold payment. If any part
Of u revenues were not paid In gold,
and II W. could look to our gold receipts
as a means OF retaining a safe reserve
the amount of our revenues would be an
influential factor In the problem, but
unfortunately all the circumstances that
might len weight to these considera-
tions are entirely lacking. In our pres
ent predicament no gold is received by
the government In payment Of evenue
charges, nor would there be II the rev.
enues were increased. The receipts OF
the treasury. when not In silver certifi-
Gates, consist OF United States notes
and treasury notes issued for silver pur-
chases. These forms OF money
are only useful TO the govern
ment in paying its current or
binary expenses and its quantity
In government possession does not In
the least contribute toward giving III
that kind Of safe financial standing or
condition which Is built on gold alone.
the government "a be used to obtain
gold for our reserve, the answer IL easy.
The people draw gold from the treasury
on demand upon United States notes
and treasury notes, but the proposition
that the treasury can or demand draw
gold from the people upon them would
be regarded in these days with won
der and amusement. And even II this
could be done, there Is nothing to pre-
vent those hus parting with their gold
from regaining 1t the next day or the
next hour by the presentation OF the
notes they received in exchange for II.
The secretary Of the treasury might
use such note X from a surplus rev.
m to buy gold In the market. or
course he could not do this without pay
ing a premium. Private holders OF gold.
unlike the government, having no par
ity to maintain. would not be restrained
from making the best bargain possible
when they furnished gold TO the treas
ury, but the moment h secretary of
the treasury bought gold on any terms
above par he would establish a general
and universal premium upon It. thus
breaking down the parity between gold
and silver which h government is
pledged to maintain and opening the
way to new mi serious complications.
An Absurd Spectacle.
In the meantime the premium would
rot remain stationary and the absurd
ipectacle might be presented OF q deal
n selling gold TO the government and
with United States notes or treasury
notes in his hand Immediately clamor-
Ing for Its return n q resale at q
higher premium. II may be claimed
that q large revenue and redundant re-
ceipts might favorably affect the situ-
ation under discussion by affording an
opportunity OF retaining these notes In
the treasury when received and thus