Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1895-12-06

ing been acquired by the treasury with
in the several periods stated without
the issue of bonds. In other words, the
government has paid In gold more than
nine-tenths of it's United States notes
and still owes them all. 1t has paid In
gold about one-half of its notes given
for silver purchases without extinguish-
ing by such payment one dollar Of these
notes.
When added to all this we are remind
ed that to carry on this astounding
financial scheme the government has
incurred bonded Indebtedness Of $685.
100000 in establishing a gold reserve.
and Of $162, 315. 400 in efforts to maintain
it; that the annual interest charge on
such bonded Indebtedness is more than
$11,0OO.OO0; that a continuance in our
present course may result in further
bond issues, and that we have suffered
or are threatened with all this for the
sake of supplying gold for foreign ship
ment or facilitating it's boarding at
home, situation is exhibited which
certainly ought to arrest attention and
provoke immediate legislative relief.
am convinced the only thorough and
practical remedy for our troubles is
found in the retirement and cancella-
ton of our United States notes, COM
monty called greenbacks, and the out
standing treasury notes issued by the
government in payment Of silver pur-
chases under the act of 1890.
For National Bank Notes.
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
low rate of interest. They should be long
term bonds, thus increasing their desira-
bility as investments, and because their
payment could be well postponed TO a
| toll 90. -s.I
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 way by
which gold may be added to our currency
in lieu Of Them feature in the plan
should be an authority given to the secre-
| tary of the treasury to dispose of the
! bonds abroad for gold il necessary to
complete the contemplated redemption
and cancellation, permitting him to use
| the proceeds of such bonds to take Up
| and cancel any of the notes that may be
in the treasury or that may be received
by the governement on any account.
The currency Withdrawn by the retire
ment of the United States notes and
! treasury notes, amounting to probably
less than $40O.000,000. might be
supplied by such gold as would
be used on their retirement or
by an increase in the circulation Of our
national banks. Though the aggregate
/ capital OF those now in existence
amounts to more than 1864, 000, 900. their
outstanding circulation, based on bond
security, amounts to only about $780,
600, 900. They are authorized to issue
notes amounting to 80 per cent of the
bonds deposited to secure their circu-
lation, but in no event beyond the
amount of their capital stock. and they
are obliged to pay per cent tax on the
circulation they issue.
Basis of Bank Circulation.
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 to one-fourth of 1 per cent,
which would undoubtedly meet all the
expense the government incurs on their
account. In addition they should be al
lowed to substitute or deposit in lieu OF
the bonds now required as security for
their circulation those which would be
issued for the purpose Of retiring the
: United States notes and treasury notes
: The banks already existing, if they de-
2 sired to avail themselves of the proyi-
sions of the law thus modified, could
r ISIS lie circulation in addition to that al.
ready outstanding. amounting to $47S,-
T 100000 which would nearly or quite
equdi the CURRENCY proposed 10 De can
ceiled. At any rate, / should confident
t ly expect to see the existing national
4 banks or others to be organized avail
I themselves of the proposed encourage
I ments to issue circulation, and prompt,
! fill any vacuum and supply every cur
1 rency need.
1 do not overlook the fact that tn,
cancellation of the treasury notes is
5 sued under the silver purchasing act O.
: 1890 would leave the treasury in tn,
e actual ownership of sufficient silver. in
{ Guiding seigniorage, to coin nearly SITS.
I 100000 in standard dollars. 1t Is worth,
4 OF consideration whether this might not
e from time to time, be converted into dol
e lars or fractional coin and slowly pu
: into circulation, as in the Judgment o
u the secretary of the treasury the neces
: sites of the country should require
3 Whatever is attempted should be en-
e tered upon fully approaching the fac
q that by careless, easy descent we hay
i reached dangerous depth, and tina
Il our ascent will not be accomplishe,
. without laborious toll and struggle
e We shall be wise if we realize tina
u we are financially i'll and that gu
u restoration to health may require heroi
, treatment and unpleasant remedies
II and if we could look to our gold receipts as
q means of maintaining a safe reserve, tn
e amount OF our revenues would be an influentis
IS factor in the problem. But unfortunately a
It the circumstances that might lend weight I
'e this consideration are entirely lacking.
10 In our present predcament no gold is re
1t ceived by the government In payment of re,
IT enue charges. nor would there be IL the re,
IL enues were increased. The receipts of IN
It treasury, when not in silver certificates cor
sist OF United States notes and treasury note
issued for silver purchases. These forms ,
money are only useful to the government
SIS paying its current ordinary expenses, and Il
by quantity in government possession does not
at the least contribute toward giving us thu
h kind of safe financial standing or conditiC
err which is built on gold alone.
re Very little mention Is made of the tart
u outside of its relation to the financi
re question
" Free Silver Coinage.
- The message winds up with an appeal
- - the advocates of free silver to reconsid,
~ their proposition before further financi;
:, disturbances are caused.
In conclusion, / especially entref
he the peoples representatives in the col
~ gress, who are charged with the r.
mt sponsibility of inauguraung measure
Id for the safety and prosperity of OF
ce common country, to promptly and e
es fectively consider the ills of our critics
to financial plight. l have suggested
We remedy which my Judgment approve
ng / desire, however to assure the congre
ut. that l am prepared to cooperate wit
IT, A,fA Inn Of6 anc