The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-12-04

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
purchases under the act of 1890. ! be-
lieve this could be quite readily ac-
complished. by the exchange of these
notes for United States bonds of small
as we'll as large denominations. bearing
a low rate of interest. They should be
long term bonds, thus increasing their
desirability as Investments and be-
cause their payment could be well post
poned for a period far removed from
present financial burdens and per-
pleXitics when, with increased pros
perity and resources they would be
more easily met.
ITO further insure the cancella-
tion of these notes and also pro-
vide a way by which gold may be
added to our currency in lieu or them,
feature in the plan should pe an au-
thority given to the secretary of the
treasury to dispose of the bonds abroad
for gold If necessary to complete the
contemplated redemption and cancel
lation, permitting him to use the pro-
ceeds 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 government on any account.
volved in this plan would be amply
compensated by renewed activity and
enterprise in all business circles, by
restored confidence at home. the rein
stated faith in our monetary strength
abroad and the stimulation OF every
interest and industry that would fol-
low the cancellation of the gold-de-
mand obligations now affecting us.
The currency withdrawn by the
retirement of the United States
notes and treasury notes amount
ing to probably less than
S4S6, 900, 600 might be supplied by such gold
certificates as would be issued on
the circulation of our national banks
Would Increase "ank Ctrcu'atiOu.
The president thinks that the nation
al banks should be allowed to issue cir
culation equal to the par value of the
bonds which they now deposit to Sc
cure II, and that the tax on
their circulation should be reduced 10
one fourth of one per cent. which
would undoubtedly meet all the eX-
pense the government incurs ON their
account In addition they should be
allowed 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.
| Further on, after suggesting the means
| which he believes will put the financial
| system of the country on sound basis,
| the president says: "WhateVer is at
| tempted should be entered upon, fully
| appreciatng the fact that by careless,
easy descent we have reached a dam
gerous depth and that our ascent will
not be accomplished without laborious
| toll and struggle. We shall be wise II
we realize that we are financially i'll
| and that our restoration to health may
| t,.aa t,,,a nd c.
ant / cannot but think there has been
| some confusion Of ideas regarding the
| effects of the issue of bonds and the re-
suits of the withdrawal of gold. 1t
was the latter process and not the for
mer, that by substituting in the treas
| ury, United States notes and treasury
notes for gold. increased by so much
the amount of money which was in the
first instance subject to ordinary gov
ernment expenditures. Although the
| law compelling an increased purchase
| of silver by the government was passed
| on July 14th. 1896. Withdrawals of gold
from the treasury. upon the notes
| given in payment on such purchases,
did not begin until October 1891. I'm
mediately following that date the with
| drawals upon both these notes and
| United States notes increased very
| largely and have continued to such an
| extent that since the passage of that
| law there has been more than thirteen
| times as much gold drawn out of the
| treasury upon United States and treas
ury notes issued for silver purchase, as
| was thus withdrawn during the eleven
| and a half years Immediately prior
thereto and after January 1st, 1879,
| when specie payments We're resumed,
| While | have endeavored to make a
plain statement of the disordered condi-
ton of our currency and the present
dangers menacing our prosperity and
to suggest q way which leads to safer
financial system, have constantly had
in mind the fact that many 81 my
countrymen, whose sincerity / do not
doubt. insist that the cure for the ills
| now threatening us may be found in
| the single remedy of the free
coinage of silver. They contend that
our mints shall be at once thrown
open to the free, unlimited and inde-
pendent coinage of both gold and sill
| yer dollars of full legal tender quality,
regardless of the action of any other
government and in full view of the fact
that the ratio between the metals that
they suggest, calls for one hundred
cents worth of gold in the gold dollar,
at the present standard. and only fifty
cents in intrinsic worth of silver in the
silver dollars.
Favors Gold Standard.
Were there infinitely stronger rea-
sons for believing that such action
would secure for us q bimetal-
lie currency moving in lines Of par
ity. an experiment so novel and haz-
ardous as that proposed might well
stagger those who believe that stability
Is an imperative condition of sound
money. No government, no human
contrivance or act of legislation. has
ever been able to hold the two metals