Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1895-12-03

am convinced the only thorough and
practicable remedy for our troubles is
found in the retirement and cancella-
ton of our United States notes, COM
monty called greenbacks, and the out
standing Treasury notes issued by the
government in payment of silver l'ur-
chased under the act of 1890. l believe
this could be quite readily accomplish
Hd by the exchange of these notes for
United States bonds of small as we'll as
large denomin ations, 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 a
period far removed from present finan-
cial burdens and perplexities, when
with increased prosperity and resources
they would be more easily m t. To
further insure the cancellation of these
notes and also provide way by which
gold may be added to our currency in
lieu of them, a feature in the plan should
be au authority given to the Secretary
of the Treasury to dispose of the bonds
abroad for gold if necessary to complete
the contemplated redemption and can
collation., 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.
The currency withdrawn by the retire
ment of the United States notes and
Treasury notes, amounting to probably
Ioo, tb,n cdQe Q00 0n0 r,,inbt ho c,n
piled by such gold as would be used on
their retirement or by an increase in
the circulation of our national banks.
I 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 reduced to one-fourth of one
per cent, which would undoubtedly
meet all the expense the government
ncurs on their account. In addition
they should be allowed to substitute or
deposit in lieu of the bonds now re-
CURED as security for their circulation
those which would be issued for the
purpose OF retiring the United States
notes and Treasury notes. The banks
already existing could issue circulation
in addition to that already outstanding,
amounting to S47S,000.000, which
would nearly or quite equal the cur
reucy proposed to he cancelled. 1t has
always seemed to me that the pro-
visions of law regarding the capital of
national banks which operate as lin
itation to their location fails TO make
proper compensation for the suppress
sion of State banks. ANY Inconvenience
or embarrassment arising 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 in smaller communi-
ties or by permitting banks OF large
! capital to establish branches in such
localities as would serve the people
But there might not be the necessity
for such an addition to the currency
by new issues of bank circulation as at
first glance is indicated. If we should
be relieved from maintaining gold re-
serve under conditions that constitute
it the barometer of our solvency, and
If our Treasury 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. lido not overlook the
fact that the cancellation of the treas
ury notes issued under the silver-pur-
chasing act Of 1890 would leave Il e
treas ury in the actual ownership o.
sufficient silver, including seiguiorage,
to coin nearly $17S,000,000 in standard
dollars. This might, from time to
time, be converted into dollars or frac-
tionel coin and slowly put into circula,
ton, as in the judgment of the Secre-
tary of the Treasury the necessities of
the country should require. The i'm
portant question is not the quantity OF
money received in revenue payments,
but the kind of money We maintain
and our ability to continue in sound
financial condition. In our present
predicament no gold is received by the
government in payment of revenue
charges, nor would there be if the rev.
enues were increased. The receipts of
the Treasury, when not in silver GER
ti6cates, consist oil United States notes
and Treasury notes issued for silver
purchases. These forms of money are
only useful to the government
in paying its current ordinary ex
penses. The Secretary ofthe Treasury
might use such notes taken from
surplus revenue to buy gold in the
market. OF course he could not do
this without paying premium; but
the moment the Secretary of the Treas
ury bought gold On any terms above
par he would establish universal
premium upon 1t, thus breaking down
the parity between gold and silver
which the government is pledged to
maintain. In the meantime the pre-
MUM would not remain stationary,
and the absurd spectacle might be pre-
sented of q dealer selling gold to the
government, and with United States
notes and Treasury notes in his hand
Immediately clamoring for IFS return
and resale at a higher premium. 1t
may be claimed that large revenue
and redundant receipts might favor
ably affect the situation by affording
an opportunity cfretaining these notes
in the Treasury when received, and
thus preventing their presentation for
gold. Such retention to be useful
ought to be at least mes surably per-
maneni; and this is precisely what is pro.
hibited, so far as United States notes
are concerned, by the law of 1878,
which provides that these notes when
received into the Treasury shall be