The Penn's Grove record., 1895-12-06
the Treasury within the several periods
stated without the issue Of bonds.

stated without the issue of bonds.
Withdrawal Of Gold.
On the 2Sth of January, 1895. it was re-
ported by the Secretary of the Treasury
that more thar S172.000,000 of gold had
been withdrawn for boarding or shipment
during the year preceding. lie now reports
that from January l, 1919 to July IA, 1880,
a period of over eleven years, only a lit
tie over $2S,000,0 900 was withdrawn, and
that between July IA, 1890, the date of
the passage of the law for an increased
purchase of silver. and the list day of
December, 1895, or within less than hive
and a half years, there was withdrawn
nearly $3I5,000 900, making a total of
more than $403,00 900 drawn from the
Treasury in gold since January l, 1879,
the date fixed in 1875 for the retirement
of the United States notes.
Nearly 1921. 100000 of the gold thus
withdrawn has been paid out OF these
United States notes, and yet every one of
the $346,000,0 900 is still uncancelled and
ready to do service In future gold deple-
tions.
More than SIG, 900. 900 in gold has. since
their creation in 1890, been paid out from
the Treasury upon the notes given on the
purchase of silver by the government; and
yet the whole, amounting to $155. Q 900.
except a little more than SIG, 900, 900, which
lave been retired by exchanges. for silver
at the request of the holders remains out
standing and prepared to join their older
and more experienced allies in future raids
upon the Treasury's gold reserve.
The Increase of the Debt.
In other words, the government has paid
In gold more than nine-tenths of its United
States notes, and still owes them all. 1t
has paid in gold about one-half Of its
notes given for silver purchases without
extinguishing by such payment dollar
of these notes.
When added to all this we are reminded
that to carry on this astounding financial
scheme the government has incurred a
bonded indebtedness of sos, 100000 in es-
tablishing a gold reserve, and of $162,3l5,-
400 in efforts to maintain 1t; that the an
nual interest charge on such bonded in
debtedness is more than $~11,OOO,O00; that
a continuance in our present course may
result In further bond issues, and
that we have suffered or are threat
ened with all this for the sake of supplying
gold for foreign shipment or facilitating its
boarding at home, a situation is exhibited
which certainly ought to arrest attention
and provoke immediate legislative relief. l
am convinced the only thorough and prac-
ticable remedy for our troubles is found
in the retirement and cancellation of our
United States notes, commonly called green
backs, and the outstanding Treasury notes.
issued by the government in payment of
Silver puTCudheS uuutT Tic act "a AOOOs
l 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, bearing a low
rate of interest. They should be long-term
bonds, thus increasing their desirability as
investments, and BECAUSE their payment
could be well postponed to a period far
removed from present financial burdens
and perplexities, when with increased pros
perity and they would be more
easily met. To further insure the cancella-
ton of these notes, and also provide a way
by WHICH gold may be added to our curren,
cy in lieu of them. a feature in the plan
should be an authority given to the Secre-
of the bonds abroad for gold,
If necessary to complete the contemplated
redemption and cancellation permitting
take up and cancel any of the notes that
may be in the Treasury or that may be re-
ceived by the government on any account.
The increase of our bonded debts involved
in this plan would be amply compensated
by renewed activity and enterprise in all
home, the reinstated faith in our monetary
strength abroad. and the stimulation Of
every interest and industry that would
follow the cancellation of the gold-de-
mand obligations now affecting us.
In any event the bonds proposed would
stand IOr the exIlDRulsUIutht VI n tEOuuiC-
some indebtedness, while in the path we
now follow there Turks the menace of un.
ending bonds with our indebtedness still
undischarged and aggravated in every fea-
ture. The obligations necessary to fund
this Indebtedness 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 revenues.
Increased Circulation.
The currency withdrawn by the retire
ment of the United States notes and
Treasury notes, amounting to probably less
than $486, 10000, might be supplied by
such gold as would be used on their re-
tirement or by an increase in the circula-
ton of our national banks. Though the
aggregate capital of those now in existence
amounts to more than 1904 900, DOC, their
outstanding circulation, based on bond
security, mounts to only about $l9O,OOO,-
600. They are authorized to issue notes
amounting to ninety per cent. of the bonds
deposited to secure their circulation, but
In no event beyond the amoun of their
capital stock, and they are Obliged to pay
one, per cent. tax on the circulation they
issue.
/ 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 re-
duced to one-fourth of one per cent, which
would undoubtedly meet all the expense
the government incurs on their account. In
addition, they should be allowed to substi-
tute 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
and Treasury notes. The banks already
existing, if they desired to avail themselves
of the provisions of the law thus modified.
could issue circulation in addition to that
already outstanding. amounting to $47S,,,
600, 600, which would nearly or quite equal
the currency proposed to be cancelled. At
any rate. I should confidently expect to see
the existing national banks. or others to
be organized, avail themselves of the pro-
posed en~eouragements to issue circulation,
and promptly ell any vacuum n supply
every currency need.
New Banking System.
II has always seemed to me that the
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