The evening times., 1895-12-03

duced to ons-fourth OF I per cent, which
would undoubtedly meet all the expense the
dltion they should be- allowed TO substitutes
ior deposit in lieu of the bonds Uuw required
as security for their circulation those
which would be issued for the pIrp, SC OF re-
tirlng the United States notes nd Treasury
poteS.
The hanks already existing, II they de-
OF law thus modified, could issue circu-
l,'ation 10 addition to that already outsta nd
lug, amounting to S41S,0Uo,c00, which
would nearly or quite equal the currency
proposed to be- Cancelled At any rate 7
shoald confidently expect to see the ex-
isting national banks or others TO be or
,ianized avail themselves of The proposed
encouragement TO issue circulation and
promptly fill any vacuum and supply every
currency need.
1t has alwa IS seemed to me that the pro
visions OF law regarding the capital of ma
tional banks. which operate as a limitation
10 their location. fails to ma ke proper com
pensation Tor the suppression Of state banks.
/ WHICH came near 10 tue people III a II SECTIONS
OF the country and readily furnished then.
win banking gacCommoda tionsa nj facilities
ANY Inconvenience or cmbarrassiuent aris-
ing from these restrictions on the location
OF national banks might Well BE- reinetiied
by better adapting The present system 10 the
creation or bsnks in smaller ca ini,iunities
or by permitting banks OF large capita tn
establish braucnes in such localities as
would serve the people-so regulated and
restrained as to secure their safe ard con
serv3tiye control aud mana cement
But there might not be the necessity for
such an addition to the currency by new
Is Indicated II we should lie relieved from
maintaining gold reserve under such con
ultlons that constitute il the barometer O.
our soiyency, AMI y our Treasury should no
longer b, the foolish purveyar OF gold for
nations abroad or for sLecula tion ana hoard
ing by our citlze:ls al home. 1 should ex-
pect 10 Ste Roid resume its natural and nor
mai functions in the business affairs of the
country, and cease TO be an object attract
ing the timid watch OF our people an: ex.
citirg their sensitive imagirations
CONVERTED INTO DOLLARS.
I Go not overlook the fact that the can
collation. of the Treasury notes ISSUED Under
the silyerpurchasing act of 1880 Womb
ItdVe the Treasury IN the aetna ownership
OF sufficient silver, including seignioraxe.
70 COIN nearly S1sS,C0O,t Ou i'll standard
r2iass. ,rhiths. ~, ~ Is worthy OF consideration
DE converted into dollars or fractional coin
anu sinwIy put iuto circulation, as IN the
!uuSinent OF the Secretary of the Treasury
uac necrs>itleS OF tIle country Should require
Whatever Is attempted should he entered
upon fuliy approaching the fact that nv
ear.iess. easy descent we have reached
a dangerous depth, and that our ascent
VIII not be accomplished without IA boriorls
toll and struggle. We shall be wise IN w..
feaiize that we are financially III and
that our restoration TO health NAV re-
II ite der,ic Ii ueatliieIt mi uuI.I. ..Ss.nl rem
edies.
In the present stage Of our difficulty I,
Is not easy 10 understand how the amount
OF our revenue receipts directly affects IT,
The important question s not the ouan.
t1ty OF money received in revenue pay
ments. but The kind or m oney we maintain
and our ability to continue in sound finan-
ciaf condition. We are considering the
governments holdings OF gold as Ielateo
TO the soundness or our money and as ar
fectiDg our national credit and monetary
strength.
If cur gold reserve had never been i'm.
paired; IL no bonds Lad ever been issued
to reDleDish IL; IL there had been no fear
and timidity concerning our ability to
continue gold payments; If any part of
our revenues were now paid in gold and
II we could look to our gold receipts as
means of maintaining . safe reserve
the amount Of our revenues would be an
i.ii'nfallal iactnr ~ tue irt'trci.'- but
fcrt unately all the circumstances that
iuiEnt ietd weight 10 tIiIS consideration are
cnt tirely lacking.
In our present predicamcnt no gold is
received by the government la payment OF
revenue charges, nor would there be If the
revenues were increased. The receipts OF
the Treasury. when not in silver certifi-
Gates. consist OF United STATES notes aud
Treasury notes Issued for silver purchases
These forms OF money ARE cniy useful to
the government in paying its current orii-
nary expenses, and its quantity IN gov
ernnient possess ion does moi in tie least
contribute toward giving us that kind
of safe financial standing or condition
which is built on goid alone.
THE ANSWER is EASY.
III IL is said that these notes If 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 StatesnotesandTreasu notes.
but the proposition that the Treasury canon
demand draw gold from the people upon
them would be regarded in these days with
v omler and amusement. Aud even il this
could be done. there is nothing Ia prevent
those thus parting with their gold from re
yainins. IL the NEXT day or the next hour by
the presenta a 10 OF the notes they rec.ivediU
exchange Tor it.
The Secretary OF the Treasury might use
,uch notes taken from n surplus revenue 10
buy gold in the market. or course he could
not do this without paying premium. Phi
rate holders OF gold. unlike The government
iayi:.. no parity 90 maint ain. would not be
from making The best bargain
possible when they furnished gold to the
Treasury: but the moment the Secretary OF
he Treasury bought gold on any terms
abuy. par he would establish 4 general and
universal premium upon it. thus breaking
Town the parity between gold and silver
which the government is pledged to main
ain. nd opening the way 10 new and serious
In the int'3 mime tue pre-
mum would not remain stationary. and the
absurd spectacle might be presented of q
lcaIrr scling gold to the government. and
sith United 81 ates notes or Trea snry notes
n his hand Immediately clanoring for Its
,cturn and a rcsaieat higher premium.
I,iuay be ri;, lined that a large revenue and
esici.aaEt receipts might fayorably affece