The Windham County reformer. (Battleboro, Vt.) 1876-1897, 1895-12-06

the annual interest charge on such Dohueu IN
dc btedncss is more than 81, OO000O; lhat con
tnuanCc In our present course may result III itF
thpr bond issues: and that We have suffered OF
are threatened with all this for the sake oi sup.
plying gold for foreign shipment OF laclHGuhg
its boarding at home, situation !. eNliip!teI,
which certainly ought 10 arrest attention anu
provoke immediate legislature relief am con
WINGED the only thorough and prachcablc rene,
dy for our troubles is found IN inc retirement
and canoe llation of our | nltcd states notcs,
commonly called grccnbacks, and the outstand-
ing treasury notes issued by the government m
payment of silver purchases under the ACT OF
believe this could be quite readily ac-
complishcd by the exchange of these
notes for United States bonds 81 smaii
as well MS large denominations, bearing
should be an authority given 10 the secretary OF
the treasury to dispose of the bonds abroad Tor
gold II necessary to complete the contemplated
redemption and mediation. ;,
The increase of our bonded dcDt lnyoiNcd IN
this plan would be amply compensated by re.
ncwcd activity and enterprise IN all business
circles the restored confidence nj home, the re
instated faith in our monetary strength abroad,
and the stimulation of every interest ana indus
try that would follow the cancellation Oh tue
gold demand obligations now atnicting Us.
The currency Withdrawn by the retirement OF
the United states notes and anu treasury notes
amounting TO probably less than si6s,OO0 600,
mirh, be supplied by such gold as would be
used on their rctiromen' or by an increase IN
the circulation OF our national Danhs ihou-h
Inc aggregate capital Of those now In existence
amounts 10 more than G640OO,u00, their out
Standing circulation llsed on bond security
amounts to only about Sl90OW,GD0.
| think they Should be allowed to issue cilcu-
Iation equal 10 the par value of the bonds they
dcuosit 10 secure it, and that the tan on their
circulation should he reduced 70 nnc.iourth 81
per cent, which wOud undoubtedly meet ali
~, .pru ont
CONT. The banks already existing amounting
TO s47s 0N0O0o, which would nearly or Iultc
equal the currency proposed to be cancelled.
Al any rate | should confidently eNpec. to sec
the existing national ianks, Or others to he or
uanizcd avail themselves of the proposed en-
roura cement TO Issue circulation ana promptly
ill any vacuum and supply every currency need.
II has always seemed to me that the proVis.
ions OF law regarding the capital of national
banks which operate as Limitation OF their 10
cation fails TO make proper compensation Tor
the suppression OF state banks, wmch canc
near TO the people in All sections of the country
and readily furnished them with banking &c.
Communications and facilities. Any inconyen-
fence or embarrassment arising from these re.
strjctions on the location of national banks
might well be remcdcd by better adapting the
present system TO the creation OF banks In
smaller communities or by permitting banks OF
larrc cap[tal to establish branches in such 10
Gaines as would serve the pcoplc-so rcgulat
ed and restrained as to secure their safe ami
conservative control and management. In the
present stage of our difficulty ii Is not easy to
understand how tue amount OF our revenue re-
Ceipts directly affects II.
In orr present prcdicamcnt no gold i, re
cCiycd by the government III payment oil rev
cnue charges, nor would there DC II tnc feNe-
nncs were incrca >ed. The receipts of the treas
urv when not in silver certificates, consist OF
United States notes and treasury notes Issued
foy silver purchases. These forms OF money
are ONLY useful to the government i'll paying IT.
current ordinary expenses, and its quantity In
government POSSESSION does not III the least con
tribute toward giving us that KIND OF safc imam,
cial standing or condition which Is huit ON goli
alone,
The secretary of the treasury might
use such notes taken from a surplus
revenue TO by gold in the market. But
that would at once send gold to a
premium. and the absurd spectacle
might be presented of collecting Il pre-
MUM for exchanging gold for green
backs and then at once turning round
and compelling the government to eN-
change back free of charge.
1t may be claimed that 4 large rev
cnue and redundant receipts might
favorabN affect the situation under
discussion by atTording an opportunity
Of retaining these notes in the treasury
when received, and thus preventing
their presentation for gold. Such re-
tcntion to he useful ought to be at
least measurably permauent and this
is precisely what is prohibited, so far
as United States notes are concerned.
Besides. the accumulation in the
treasury of currency of any kind exact
ed from the people through taxation Is
Justly regarded as an evil.
At no time when bonds have been
issued has there been any cnnsidcra-
ton of the question of paying the eN-
penscs af government with their pro
ceeds. There was no necessity to
consider that question. vt the time
of each bond issue we had a safe sur
plus in the treasury for ordinary
operations, exclusive of the gold in
our reserve.
1t is neither unfair nor unjust 10
charge u large share of cur present
financial perplcXitics and dangers to
the operation of the laws of 1878 and
Is compelling the purchase of silver
hy the government. which not only
furnished q new treasury obligation
upon which it's gold could he with
drawn. hui so increased tho fear of
AN overwhelming tiooh Of silver and a
forced descent 10 silver payments that
even IttF repeal III lIlfSt t'tNS INV iOt
entirely cure the wells or their ex
istencc
fsimcta itsm.
M government. no human contriv-
ance or act of legislation. has ever been
able to hold the two metals together
in free coinage at Il ratio apprcciably
different from that which is establish
ed in the markets Of the world.
Those who believe that our indie
pendent free coinage of silver, at an
artificial ratio with gold Of Is To |
would restore the parity between the
metals and consequently between the
coins. oppose an unsupported and I'M.
probable theory 10 the general belief
and practice Of other nations, and to
the teaching of the wisest statesmen
and economists of the world, both in
the past and present. and. what is far