Semi-weekly independent. (Plymouth, Marshall County, Ind.) 1895-1897, 1895-12-11
Dealings with Bond Syndicate.

The history of the various bond trans
actions which have been resorted to in or
der to replenish the gold reserve is re-
viewed and the constant subsequent fall
ings off pointed out. OF the last transac-
ton with the syndicate the President
says: The performance of this contract
not only restored the reserve. but checked
for time the Withdrawals of gold and
brought on period of restored confidence
and such peace and quiet in business cir
cles as were of the greatest possible value
TO every interest that affects our people.
l have never had the slightest misgiving
concerning the wisdom or propriety of
this arrangement. and am quite willing TO
answer for my full share of responsibility
for its promotion. l believe it averted a
disaster. the imminence of which was
fortunately not at the time generally un-
derstOod by our people"
We are now. the President says. nearly
where we started and nearly all of the
gold withdrawn has been paid out on
United States notes. which still remain
uncanceled. Therefore, he says. Il am
convinced the only thorough and practic-
able remedy for our troubles is found in
the retirement and cancellation of our
greenbacks. and the outstanding treasury
notes issued by the government in pay
ment of silver purchases under the act
of 1870"
| believe this could be quite readily ac-
complished by the exchange of these notes
for United States bonds of small as well
as large denominations, hearing low
rate Of interest They should he long
hi
bility as investments. and because their
payment could be well postponed to a
period far removed from present financial
burdens and perpleXities, when, with in
creased prosperity and resources, they
would be more easily met.
To further insure the cancellation of
these notes and also provide a wa; 10y
which gold may be added To our currency
in lieu of them. feature in the plan
should be an authority given TO the See
Rotary of the Treasury To- dispose of the
bonds abroad for gold if necessary to COM
plete the contemplated redemption and
cancellation. permitting him TO use the
proceeds of such bonds 10 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 increase of our bonded debt involv-
ed would be amply compensated by renew
ed activity in all business circles. restored
confidence at home. reinstated faith IN
our monetary strength abroad and stirn-
ulatiOn of every interest and industry
that would follow the cancellation of the
gold-demand obligations. In any event.
the bonds proposed would stand for the
extinguishmeDt of troublesome indebted
ness. while in the path we now follow
there turks the menace of unending BONES
with our indebtedness still undischarged
and aggravated in every feature. The OBJ
legations necessary TO fund rhiS indebted
ness would not equal in amount those
from which we have been relieved since
1884 by anticipation and payment beyond
the requirements of the sinking fund out
of our surplus revenue.
The currency withdrawn by the retire
ment of the United States notes and
treasury notes. amounting to probably less
than S4S6. 900. 900 might be supplied by
such gold as would be used in their retire
ment or by an increase in the circulliion
of our national banks. Though the aggre-
gate capital of those now in existence
amounts 10 more than S664, 100000, their
outstanding circulation, based or bond
security. amounts to only about Sl@,WD,-
900. They are authorized To issue notes
amounting to 30 per cent g the bonds de-
posted to secure their circulation. but
in no event beyond the amount of their
capital stock. ard they are obliged 10 pay
| per cent tax OH the circulation they is
sue.
| 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 One-fourth of l per cent, which
would meet all the expense Government
incurs on their account. In addition they
should be allowed to substitute or deposit.
in lieu of the bonds now required as Sc
curity for their circulation. those which
would be issued for the purpose of re-
firing the United States notes and treas
ury notes.
The banks already existing. if they
desired. could issue circulation in addi-
ton To that already outstanding. amount
ing To $41S,OOO.OO0, which would nearly
or quite equal the currency proposed 10
be cancelled. At any rate, should con
fdently expect to see the existing nation
al banks. or others TO be organized. avail
themselves of the proposed encourage
ments to issue circulation. and promptly
fill any vacuum and supply every cur
rency need.
1t has always seemed to me that the
provisions of law regarding the capital
of national banks which operate as a linn
itation to their location fail 10 make
proper compensation for the suppression
of State banks, which came near TO the
people in all sections of the country and
readily furnished them with banking ac-
commodations and facilities. Any in
convenience or embarra ssment arising
from these restrictions OH the location Of
national banks might we'll be remedied
by better adapting the present system TO
the creation of banks in smaller COM
munitics or by permitting banks of large
capital to establish branches in such To-
calities as would serve the people-so
regulated and restrained as TO seclre
their safe and conservative control and
management.
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. Ii we should be re-
liewd from maintaining a gold reserve
under conditions that constitute it the
barometer of our sOlvency, and if our