The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1895-12-19

necessarily invorves such large In.
oreases OF the interest. bearing public
debt from time TO time and would i'm.
pose permanently upon the government
such onerous and inappropriate duties
In relation to the paper currency of the
country that ought not to he favorably
entertained, except as last resort IN
the struggle for the maintenance Of the
public faith and the preservation Of the
inviolabiIity OF private contracts
THE issue of bonds" he says, Ito
procure coin for the reserve, which is
the only effectual method available
now under the law, will, unless coudi.
lions which have already been devel.
oped by the present policy are radical
ly changed, ultimately result In the
creation of public debt much larger
than would be required TO retire and
cancel all the notes. and the annual in.
terest charge would be much greater
than 1t would be necessary TO incur on
the new issue of bonds adapted to the
present circumstances Of the govern.
ment and the well known preference Of
investors, II, however, an attempt Ia
TO be made to keep the United States
notes and treasury notes permanently
In circulation by reissue after redemp.
manently charged with the duty Of sus.
tanning the value of all our currency,
paper aud coin alike, the conclusion
cannot be avoided that the policy of IT,
suing bonds for the accomplishment Of
these purposes must also become per
manent and such additional powers
must be conferred upon the secretary
as will enable him to execute the laws
relating to these subjects with the least
possible disturbance of the business af
Fairs Of the people and the least posi-
BILE charge upon the treasury. l an
thoroughly convinced that this policy
ought not to be continued, but that the
| United States notes and the treasury
notes should be retired from circulation
at the earliest practical day, and tha
the government should be wholly re
lieved from the responsibility o
providing a credit currency for th'
| people"
The secretary discusses the oontinua
drain Of gold, and says There is bu
one safe and effectual way to protec
our treasury against these demands
and that is to retire and cancel tn
notes which constitute the only mean
through which the Withdrawals can b
made.
This can be most successfully AM
economically accomplished by author
izing the secretary Of the treasury t.
issue from time to time bonds payabl
In gold, bearing interest at rate no
exceeding per cent per annum an
having a long time to run, and to ex
change the bonds for United State
notes and treasury notes upon sucI
terms as may be most advantageous t,
the government or to sell them abroa
for gold whenever, In his Judgment,
10 advisable to do so, and use the gol
thus obtained In redeeming the Out
standing notes. Under the operatio
of such plan, II judiciously executed
there could be no improper contraction
Of the circulation, because II it shoul
at any time be found that other form
Of currency were not being supplied
the extent required, exchanges {
bonds for notes would be suspended
and gold would be procured by sellin
the securities abroad, In order to fuI
ther facilitate the substitution Of othe
currency for the retirement Of the legt
tender notes, the national banks shoul
be authorized to issue notes equal
amount to the face value of bonds d,
posted to secure them, and the tax o
tnelI ClTCuIhtlOu 6nOulu De TeuuCbu
one.fourth of per cent per annum.
"As part of the plan for the retir
ment and cancellation Of the legal ter
der notes, the treasury should be re
lieved from the responsibility for tn
redemption Of national bank notes Q;
oept worn, mutilated and defaced mott
and the notes Of failed banks, and eac
association should be required to r
deem its circulation at Its own off
and at agencies to be designated by Il
comptroller Of the currency, as was Il
case prior to the passage of the act
June 20, 1884; or If this Is not consi
cred expedieut and the present syste
Of currency redemption by the treasul
10 continued, the secretary should ha'
the power, after future date, to
fixed In the law, to require the BAN
TO keep their per cent redemptiC
fund in gold coin and to deposit go
for the withdrawal OF bonds wheneV
circulation Is to be permanently su
, rendered or reduced
The secretary also favors the passa
Of law allowing national banks tc {
J tablish branches in small towns with
! view to bringing them closer 10 Il
people in parts Of the country reno
,, from large towns and oities, by whit
their usefulness would be gre atty 6
hanoed.