Alma record. (Alma, Mich.) 1878-1928, 1895-12-13

standing ana prepared 10 JOIN lil'f
and more experienced allies In future RAIDS
upon the treasurys gold reserve
In other words. the government has pala
! I'm gold more than nine-tenthS or It's lnlted
| States notes and still owes them all. IL has
paid I'M gold about one-half OF us notes
| given for silver purchases without eN
| tinguishing by such payment one dollar OF
| these notes. When added TO all THIS we are
| reminded that 10 carry on this astouh1lhs
financial scheme the goyernhe 81 xo ~ 20 S noo
'o establishing gold reserve ana or Sl"z'-
49, 400 in efforts 10 maintain IL: that the an
| nual interest charge, on such bonded IN
debtedness is more than $ll,OOO,OOO, that
continuance in our present course may re-
suit in further bond issues, and that we
have suffered are threatened with all
| this for the sake OF supplying gold for for
| eign shipment or facilitating it's boarding
at home, "A situation is exhibited which GER
,a!nly ought 10 arrest attention anu pro-
I woke immediate legislative relief.
Notes should lie Retired.
| am convinced the only thorough and
practicable remedy for our troubles Is
| OF our United States notes, commonly
treasury notes lsshed by the eovernmen1
| i'm payment of silver purchases under the
act of 1890 l believe this could be quite
readily accomplishing by the exchange Of
| these notes for United States bonds OF
| small as well as large denominations,
! bearing a low rate OF interest They should
| be long-term bonds. thus increasing their
| dosirability as Investments, and because
| Inelr payment COOlu De wei pOSlpOilcu ~
| a period far removed from present imam
! cial burdens and peipleNities, when with
| DECREASED prosperity and resources they
| would be more easily met. To further IN
sure the cancellation of these notes ana
also provide way by which gold may be
! added TO our currency IN ileu OF theil' a
| feature in the plan should be an authority
! given TO the secretary OF the treasury 90
| dispose OF the bonds abroad Tor goa II
| necessary to complete the contemplated
| redemption and cancellation, permitting
| him 10 use the proceeds of such bonds TO
: take up and cancel any or the notes that
| may be i'm the treasury or that may be re-
| CeiVed 10y the government on any account
Would Restore Confidence,
| The increase of our bonded debt In
| yolVed in this plan would be amply COM
| pensated by renewed activity anu enter,
| prise in ali business circles. the restored
| cor fidence at home, the reinstated faith
| i'm our monetary strength abroad, and the
| stimulation of every interest and industry
| that would follow the cancellation or the
| gold-demand obligations now aftuctlng US;
| In any event. the bonds proposed would
stand for the eXtingulshment OF a trouble
some Indebtedness, Whlle In me PAIN we
| now follow there turks the menace OF un,,
| ending bonds, with our Indebtedness sun
| undischargcd and aggravated IN every
feature The OBLIGATIONS necessary to
| fuud this Indebtedness would not equal in
amount those from which We have been re-
lieved since 1884 by anticipation ana pay az
mcnt, beyond the requirements or the
sinking fund out of our surplus revenues
How to fill the Void.
The currency withdrawn by the retire
ment OF the United States notes ana treas
ury notes. amounting 10 fr0babiy less
than $4,000 ,00O might be supplied 10y such
gold ds would be used on tl,,'r retirement
or by an increase in the circulation OF our
national banks Though the aggregate
/ rapitaI of those now i'm existence amounts
! to more S6la. 900 600, their outstanding cir
culation, based on bond security, amounts
10 only about $3.50 100000. They are author
Ted to issue notes amounting to 30 per
cent OF the bonds deposited 70 secure their
circulation, but in no event beyond w
amount of their capital stock, ana they
are obliged to pay one per cent. tax on the
| I think they should be allowed to issue
! circulation equal TO the par value OF the
| bonds they deposit TO secure II, and thai
the tax on their circulation should be re-
/ duccd TO one-fourth of one per cent, which
would undoubtedly meet all the expense
the government incurs on their account
In addition, they should he allowed TO SUB
stitute or deposit in lieu OF the bonds now
required as security for their circulation
those which would be issued for the pur
pose OF retiring the United states notes
isting II they desired to avail themselvei
% the provisions Of law thus modified
could issue circulation in addition TO tina
already outstanding, amounting TO SAYS,
900. 900, which would nearly or quite equa
the currency proposed TO be canceled. a
any rate | should confidently expect u
see the existing national banks or others Il
be organized avail themselves OF the pro
posed encouragements 10 issue circulation
, every currency need.
! IL has always seemed TO me that the pro
visions of law regarding the capital OF ms. ma
tional banks which operate as a limitation
TO their location fails TO make prope
compensation for the suppression or stat
banks, which came near to the people II
! all sections OF the country and readily fur
. nished them with banking accommoda
: | tons and facilities. Any inconvenience
. / or embarrassm arising from these re
I strictions or the location OF national bank
might well be remedied by better adaptinI
the present system to the creation OF bank
, ! in smaller communities or by permitting
! banks of large capital to establish branche
: IA such localities as would serve the PEG
! ! pie. so regulated and restrained as TO Sc
, | cure their afo and conservative cohtfo
, and management.
Necessity May Not Arise.
t But there might not be the necessity 10
/ / such an addition to the currency by new
IS indicated If we should be relieved iron
- maintaining gold reserve under condi
; ! tons that constitute IL the barometer o
| our sOlvency, and If our treasury shoul
! ! no longer be the foolish purVcyor Of gol
u for nations abroad or for speculation an
: boarding by our citizens at home, Shout
expect TO see gold resume It's natural an
: normal functions in the business affair
Of the country and cease 10 be an obJcc
attracting the timid watch of our peopl
. and exciting their sensitive tmdginatlOns
a do not overlook the fact that the car
. collation. of the treasury notes issued ur
u der the purchasing act OF 1890 wOul
= leave the treasury in the actual ownerhSi
y of sufficient silver. including seigniorag'
- 20 coin nearly Sl7S,000,00O In standard do
" lars II Is worthy of consideration Whetf
, or this might not, from time to time /
- | converted into dollars or fractional col
- and slowly put into circulation, az In tn
: | Judgment Of the secretary Of the treasur
y the necessities of the country should ~
a. | quire Whatever is attempted should /
n | entered upon fully approaching the fa'
=, | that by careless, easy descent We hay
reached "A dangerous depth, and that OF
ascent viii not be accomplished Withot
laboriOus toll and strength. We shall
d ! wise If we realize that We are financial
S i'll and that our restoration to health ma
- require heroic treatment and unpleasar
'e remedies.
y, Question OF Quality. Not Quantity.
n In the present stage OF our difficulty 1t
y, not easy TO understand how the amount
II our revenue receipts directly AFFECTS
n The important question is not the quantt
/ OF money received In revenue payment
- but the Kind Of money we maintain and OF
D ability to continue in sound financial co
ditiOns. We are considering the cover
ment's holdings Of gold as related TO q
"a | soundness of our money and "a affcCtir
n | our national credit and monetary Strcngt
n II our gold reserve had never been In
ye paired or IL no bonds had ever been ISSUE
re TO rcplenish it; II there had been no fe
D and timidity concerning our ability TO co
V ! tfuue gold paVments. III any part or o