Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1895-12-07
government has incurred a bonded indebted.

government has incurred bonded indebted
ness of &c., 900 in establishing gold reservs
and of Sl6.. 81 '.40) in efforts to maintain it.
I 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 greenbacks and
| the outstanding treasury notes issued by the
government in payment Of silver purchased
under the act OF 1890.
The currency Withdrawn by the retirement
of the United States notes and treasury notes
amounting to probably less than $6,000.0)0
might be supplied by such gold would be
used on their retirement or by an increase in
the circulation of our national banks Though
the aggregate capital of these now in existence
amounts to more than 1865, 000,0 900. their out
standing circulation based bond security
amounts to only about Sl9J,000000
think they ought to be allowed to issue cir
culation equal to the par value of the bonds
they deposit to secure it, and that the tax on
their circulation should be reduced to 4 of per
cent. which would undoubtedly meet all the
expenses the government incurs their ac-
count. do not overlook the fact that the can
collation. of the treasury notes issued under
the silver purchasing act of 1890 would leave
the treasury in the actual ownership of suf1-
cient silver, including Seigniorage to coin
nearly Sl78,0)0,0O0 in standard dollars. 1t is
worthy of consideration whether this might
not. from time to time, be converted into dol
lars or fractional coin and slowly put into cir
culation.
In the present stage OF our difficulty it is
not easy to understand how the amount of our
revenue receipts directly affects it. The i'm
portant question is not the quantity of money
received in revenue payments, but the kind of
money we maintain and our ability to continue
In sound financial conditions. We are consid-
ering the government holding of gold as re-
lated to the SoundneSS of our money and as af-
fecting our national credit and monetary
strength. If our gold reserve had never been
INN ira6. do hud hna icct1 cd To Fn-
pleniSh; If there had been no fear and
timidity concerning our ability to continue
gold payment; If any part OF our
revenues now paid in gold;
and if we could look to our gold receipts as a
means of maintaining a safe reserve, the
amount of our revenues would be an infiuen-
tial factor in the problem. But unfortunately
all the circumstances that might lend weight
TO this consideration entirely lacking. In
our present predicament no gold is received by
the government in payment of revenue charges,
would there be if the revenues were in
creased. The receipts of the treasury when
not in silver certificates consist or United
States notes and treasury notes, issued for sill
yer purchases. These forms OF money are only
useful to the government in paying its cur
rent ordinary expenses and it's quantity
in government possession does not in the
least contribute toward giving US the kind Of
safe financial standing condition which is
built on gold alone If it is said that these
to obtain gold for our reserve, the answer is
easy. The people draw gold from the treas
ury demand upon United States notes, but
the proposition that the treasury can on de-
mand draw gold from the people upon them
would be regarded in these days with wonder
and amusement. And even if this could be
done, there is nothing to prevent those thus
PARTING with their gold from regaining it by
the next day the next hour by the preSenta-
ton of the notes theyreceivedin exchange for it.
Of froo 1jfrnf
notes taken from surplus revenue to buy
gold in the market or course he could not do
this without paying premium. Private hold
erS of gold, unlike the government, having no
parity to maintain, would not be restrained
from making the best bargain possible when
they furnished gold to the treasury: but the
moment the secretary of the treasury bought
gold on any terms above par he would estab-
lish general and universal premium upon it,
thus breaking down the parity between gold
and silver which the government is
pledged to maintain and opening the
way to new and serious complications.
In the meantime the premium would not re-
main stationary and the absurd spectacle
might be presented of an alien selling gold to
the government, and with United States notes
in his hands Immediately clamoring for its re-
turn and resale at a higher premium. 1t
may be claimed that a large revenue and re-
duced receipts might favorably affect the stu
alton under discussion by afording an oppor-
when received, and thus preventing their pre-
sentation for gold.
Such retention of the metal ought to be at
least meaSurably permanent, and this is pre-
cisely what is prohibited SO far as United
States notes are concerned.
By the law of 1873. forbdding their future
retirement. that statute in SO many words
provides that these notes when received into
the treasury and belonging to the United
States shall be paid out again and kept in
circulation" 1t will moreover be readily seen
that the government could not refuse to pay
out United States notes and treasury notes in
current transactions when demanded and in
Sist on paying out silver alone and still
maintain the parity between that metal and
the currency representing gola. Besides the
accumul tion in the treasury OF currency of
any kind exacted from the people through tax
alton Is justly regarded as an evil and it can
not proceed far without vigorous protest
against an unjuStifable retention OF money
from the business of the country and de-
nunciation of a scheme of taxation which
proves itself to be unjust when it takes from
the earnings and income of the citizen money
so much in excess of the needs of government
support that large sums can be gathered and
kept in the treasury Such condition was a
peril in time of surplus revenue and led the gov
eminent to restore currency to the people by
the purchase of it's unm atured bonds at a large
premium and by a large increase of its depos-
its in national banks, and we easily remember
that the ABUSE OF treasury REORGANIZATION uaS
furnished most persuasive argument in favor
of legislation radically reducing our tariff tax
alton
Perhaps it is supposed that suf1cient rev.
euue receipts would in a sentimental way i'm
prove the situation by inspiring confidence in
our solvency and allaying the fear of pecuniary
exhaustion. And yet all through our struggles
to maintain our gold reserve there never has
been any apprehension as to our ready ability
to pay our way with such money as we had and
the question whether or not our current re-
ceipts met our current expenses has not en-
tered into the estimate of our solvency. OF
course the general state of our funds exclusive
of gold was entirely immateria1 to the foreign
creditor and investor. His debt could only be
paid in gold and his only concern was our abil-
ity to keep on hand that kind OF money.
Inasmuch as the withdrawal of our gold has
resulted largely from fright, there is nothing
apparent that will prevent it's continuance OF
recurrence with its natural consequences, ex-
cept such change in our financial methods as
will reassure the frightened and make the de-
sire for gold less intense. It is not clear how
in n no in frold