The Providence news. (Providence [R.I.]) 1891-1906, 1895-12-16

bic charge upon the treasury. 1 am
thoroughly convinced that this policy
ought not to be continued, but that the
United States notes and treasury notes
should be retired from circulation at
the earliest practicable day, and that the
Government should be wholly relieved
from the responsibility OF providing a
credit currency, for the people.
''lt would be difficult, II not impossible,
TO devise a more inconvenient, expensive
or dangerous system than the one now
In operation under the laws providing
for the issue, redemption and reissue OF
legal tender notes by the Government.
"There has never been a time since the
close CT tho war;" the Secretary says,
"when the gradual retirement and can
collation. OF the United States notes would
not have been beneficial 10 the country,
nor has there ever been time when the
issue OF additional notes OF the same char
acter would not have been injurious TO
the country.
''If our legal tender notes were retired
there is abundant reason 10 believe that
very large amount OF gold which has
been excluded from the country by the
excessive use of silver and paper in our
circulation would promptly return to
take its place in our currency and cousti-
tuteTa permanent part OF our medium OF
exchange.
"The United States notes ana treasury
notes issued in payment Tor silver bullion,
together amounting nj the beginning 10
s502, 612, ,0lS, have been used, and are still
being used, to withdraw gold from the
Government whenever cur own people or
the government or people OF other coun-
tries see proper to demand IL for any
purpose, and under the laws now exist
ing the Secretary OF the Treasury has no
means Of complying with these demands
except by the issue and sale OF interest
L.N 10 1Ar ha oaF Of Ian wv
IL, 1875, or by the purchase OF gold coin
with bonds or notes OF the United States
under section 300 OF the revised statutes.
Against these demands, the treasury has
no availa BILE means of defense, except at
the sacrifice of the public credit and the
immediate depreciation OF the entire vol
ume OF our currency. The mere posses
sion OF a surplus in the Treasury would
prevent Withdrawals of gold. and thus
render the issue of bonds for the protec-
tion OF the reserve unnecessary, but this
view of the subject Is founded, in my
judgment, upon an entire misconceptlon
of the causes that have produced the
Withdrawals. Unless i am wholly mis-
taken. they have very little, IL any, rels-
tion to the amount OF money held by the
Government, or TO amount of money the
Government has the ability TO raise by
taxation or otherwise, but they relate
primarily and almost exclusively TO the
character of money that it might be able
to supply and keep in circulation.
"TheIe is but one safe and efectual
way,n the Secretary sayF, "to prStect our
treasury agains. these demands, and that
l. TO retire and cancel the-Botes- which
constitute the only means through which
tho Withdrawals can be made. Many
partial and temporary remedies may DO
suggested and urged with more or less
possibility, but this is the only one that
W i'll "a inly Al rCal nf
troubles and give assurance OF perma-
nent protection against they. recurrence
in the future.
"This can be most successfully and
economically accomplished by authoriz-
ing the Secretary of the Treasury TO issue
from time To time bonds payable in gold,
bearing interest at a rate not exceeding
per cent. per annum, and having a long
time to run, and to exchange the bonds
for United states notes and treasury notes
upon such terms as may he most advantS-
geous TO the Government, or TO sell them
abroad fo- gold whenever, in his Judg-
ment, ii is advisable TO do so, and use the
gold thus obtained in redeeming the
outstanding notes. Under the operation
OF such plan, If judiciOusly executed,
there could be no improper contraction
of the circulation, because If II should at
any time be found that other forms OF
currency were not being supplied to the
extent required, exchanges OF bonds for
notes would DO suspended, and gold
would be procured by selling the securi-
ties abroad. In order 10 further facili-
tate the substitution OF other currency
for the retirement of legal tender notes,
the national banks should he authorized
TO issue notes equal in amount TO the face
value OF bonus not posted TO secure them,
and the tax on their circulation should
be reduced TO one-fourth of one PER cent.
rNr a a ma nf Tho pian for tna
retirement and cancellation OF the legal
tender notes, the treasury should lie re-
lievei from responsibility for the redemp-
tion of national bank notes, except when
torn, mutilated and defaced, and the
notes of failed banks and each associa-
tion should be required TO redeem its cir
cuiation at its own office ana agencies 10
be desi ynated by the CON ptroller OF the
currency,as was the case prior TO the pass
age OF the act of June 20, 1874, or, II this Is
considered eXpedient and the present sys-
tenn OF currency re !emption by the treas
ury is continued, the Secretary should
have the power, after future date to be
fixed in tho law, TO require the banks 10
keep ther five per cent. redemption fund
in gold coin and to deposit gold coin for
the Withdrawal o: bonds " whenever circu-
lation Is to he permanently surrendered
or reduced ~
The Secretary also favors the passage OF
law allowing national Danks 10 estaD-
lish branches in small towns with view
to bringing them closer TO the people in
parts OF the country remote from large
towns and cities by which their useful
ness would be greatly enhanced. The Sec
rotary, in closing his report, says that 1t
is not probable that any plan for the per-
msnent retirement of United States notes
and treasury notes will be adopted that
will not require considerable time for its
complete execution and he therefore urges
upon Congress the propriety Of prohibit
ing any furt her issue of such notes or OF
national hank notes OF less deuomina-
tlons than $40, thus making room in the
circulation for silver coins and silver GER
tifcates OF small denominations.
This, he says, would increase their use
among the people and prevent their fre-
quent return TO and accumulation in the
treasury.
New GroCery and Market