The herald., 1895-12-04


yet every one of The 1916. 900, 900 is sti II
untanc, lied and ready to do service in
future gold dcpletions. More than $780,
600, 900 in gold has since thuir creation in
1888 been paid to from the treasury upon
notes given OIL the purchase oil silver BY
amounting to 1853, 900, oot, except II little
more that $40, OoO,0 W, which has bee,' Re-
tired by exchanges for silver ut the re-
quss Of the holders, remains outstanding
and prepared to joih their elder and more
experienced allies iI future raids upon
the treasury gold reserve.
THE NOTES UNPAID.
In other words, the government hns
paid In gold more than nine tenths Of Its
United States notes and still owes them
all. 1t has paid in gold about.half its
notes givsn for silver purchases without
exiting uishina by such pay mnet one dol.
lar OF these notes. Then, after all this,
No are reminded, to carry on this
astounding financial scheme, the govern
ment has incurred bonded ndebtadness
OF $95, 500, 000 IN esta bl. shing a gold re-
serve, and OF $l62, 3l5, 600 in Efforts to
charge on such bonded Indebtedness Is
more than $ll,0o0,0 900; that q oontinu
ance In our present course may rrault in
further bond issues and that we have
Suffered or are threatened with all tails
for the sake of supplying gold for foreign
shipments or facilitating its boarding ut
hume, q situation is exhibited which GER
talnly ought to arrest attention and pro-
woke immediate 10 ,islative relief. am
co WINGED the only thor ugh and practi-
cal remedy for our troubles is found in
the retirement and cancellation OF our
United States notes commonly called
RreenbaCks and the outstandiue notes is-
.,I t., A. -
silver purchases under the act of 1891.
LOW RATE BONDS.
l believe this could be quite readily
accom- lished by the exchange OF these
notes for United States bonds Of small
as we'll as lar Q denominations, bearing
a low rate of interest. They should be
long term bonds, thus increasing their
STABILITY as investments, and because
their payment could well be postponed 10
period far removed from present iinan.
cial bur.ens and perplsxities, when with
increased prosperity and resources, they
could be easily met To insur, the Cam
collation. OF these notes and aslo provide
way by watch gold may be aG ied to
our currency in lieu OF them, a feature
in the plan should be an authority given
TO the secretary of the treasury to dis
pose of the bonds abroad for gold if nee
demption ana cancellation, permitting
him To use this proceeds Of such bonds to
take M and cancel any OF the notes that
may be in the treasury or That may be-
received by the government on any ac-
Count. The increase in our bond6. dent
com pemsated for by renewed activity and
enterprise in all business circles
The restored confidence at home ana thu
reinstatement If our monetary strength
abr, al ann the stimulation of every In
tere-t and industry would follow the can.
collation. of the gold demand obligati ms
now affecting us. In any event, the
tinguishment of trou hlesome indie bted
ness, while in the path we foll"w there
turks the menace OF uncnding bonds. with
Indebted ess still undischafved ami ag.
gra sated in every feuturc. The obiga-
tons necessary to fund this intebteune
would not equal in amodnt those from
which we have been rcilevad since 1884
by anticipation and payment, but the re
quireihents Of the sinking fund out OF our
surplus revenues.
BANK CIRCULATION.
The currency Withdrawn by the retire.
ment of the United States notes and
treasury notes, amounting to probabl~
less than SisG, 200. 900. might be supplied
by such gold as would be used on their
retirement or by an increase in the circu-
lation Of our national banks. Though
the aggregate capital OF those now in az
istenoe amounts to more than 1854, 00o,.
900, there is outstanding circulation
hased on bond surety amounts to only
about Si90, 900. U00 They are authorized
to issue notes amounting to 30 per cent
of the bonds deposited to secure their cir.
Culatiou, bat i'll no event beyond the
amount OF their actual capital stock, and
they are Obliged to pay per cent tax on
the circuiat. on they issue. think they
should be allowed to issue circulation
equal to the par value OF the bonds they
de osit to secure it ami that the tax ON
their circulation should be reduce to
one fourth of per cent, which would
undoubtedly meet all the expense the
government inCurs on their account. In
addition, they should be allowed to sub
stitute or deposit in lieu OF the bombs
now required as security for their circu-
lation those which would be issued for
the purpose OF retiring the United States
notes and treasure notes. The banks
already existing, II they desired to avail
them elves of the prov sions OF law thus
modified could issue circulation in addi-
ton to what already outstanding amount
ing to $47S, 00O. 900, which would nearly or
quite equal she currency proposed to bs
Cancelled. At any event should con.
hdently expect to see the existing ma
ticnal banks, or Others to be organic ID,
avail themselves of the prOpoued encour
agsment- to issue circulation and
promptly fill any vacuum and supply
every currency need. 1t has always
seemed 10 me that the provisions of law
regarding the capital OF nation | banks
which operate as o lin itaton as their
lncation fails to make proper com pensa-
tion for the suppression Of state banks.
which como near to the people IN oil Sec
ii ms of the country and readily fur
nished them with banking accommoda-
tions ana facilities. ANY Inconvenience
or embarrassment arising from these re-
strictionJ on the location of national
bank might us we'll be remedied by better
adopting the present system to the crea-
ton OF banks III smaller communities or
by permitting BAL ks Of large capital to
estn blisn branches in such locations as
would serve the people so regulated and
sentative cuntrol and management, but
there might not be the necessity for such
an addition to the currency ny new issues
of bank circulation as at first glance IS
If we should b. relieved from
maintaining gold reserve under condi-
tio.s That constitute it the barometer of
our snlvency and II ouT treasury should
not longer be the foolish purveyor of
gold for nations abroad or for speculation
and boarding by our citizens at home.
should expect to see Rold resume its nat.
urai and normal functions IN the ousi-
ness affairs OF the country and cenBe to
be an nbjeot attracting the timid of our
people and exciting their sensitive imAg.
nations.
SILVER COINAGE.
j l..