The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-12-07

PioNohc ittlLleuIdlS LEGISLATIVE feIeI,t4 i
am convinced the only thorough and prac-
teal remedy for our trouble 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 pay
ment OF silver purchases under the act of
1880. 1 believe this could readily be ac-
compllshed 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 he long term
bonds, thus increasing their desirabilitv
as investments and because their payment
could he we'll postponed to u period far
removed from present financial burdens
and perpleSlties when with increased
prosperity aud resources they could be
more easily met. To insure the cancella-
ton of these notes and also provide a way
by which gold ma be added to our cur
rercy in lieu of them a feature in the
plans should be an authority given to the
secretary of the treasury to dispose OF the
bonds abroad for gold If necessary to COM
plete the contemplated redemption and
cancellation, permitting linn 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 government on any account. The in
crease of our bonde debt involved in this
plan would be amply compensated by re-
neWed activity and enterprise In all bust
ness circles. The restored confidence at
home, the %reinstated faith in our none
tary strength abroad and the stimuIa,.un
of every interest and Industry would fol-
low the cancellation of the gold demand
obligations now affecting us.
In any event the bonds proposed would
stand for the eNtinguishnlent of a trouble
| some Indebtedness while in The purH Oya
now follow there turks the menace of UNI
ending bonds with our Indebtedness Still
uiioisclarged and aggravated in every
feature. h Obligations necessary to
fund this Indebtedness would not equal in
amount those from which we have been
relieved since 1884 by anticipation and pay
mont, but the requirements Of q sinking
fund out of our surplus revenues. The
currency withdrawn by the retirement of
the United States notes and treasury
notes amounting to probably less than
sis6,ooo eco 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 these now In existence amounts
to more than S66i,00o. 900. their outstanding
circulation based on bond security
amounts to only about $50, goo. 900. They
are authorized to issue notes amounting
to 90 per cent of the bonds deposited to
secure their circulation. but in no event
beyond the amount of their capital stock,
ana they are obliged TO pay l per cent
tax on the circulation they issue.
1 think they should be allowed to issue
circulation equal to the par value of the
bonds they deposit to secure it and hat
the tax on their circulation should be
reduced to n fourth of l 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 their notes which
would be issued for the purpose Of retir-
ing 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
S4IS 900, 900, which would nearly or quite
equal the currency proposed to be can
celled. AT any rate. l should confidently
expect to see the existing national banks
or others to be organized, avail them
selves of the proposed encouragements
to issue circulation and promptly fill any
vacuum and supply every currency.
1t has always seemed to me that the
provisions of law regarding the capital
of national banks which operate as a
limitation to their location fail to make
proper compensation for the suppression
of state banks. which came near to the
people in all sections of the country and
readily furnished them with banking
accommodations and facilities. Any in
convenience or embarrassment arising
from these restrictions on the location of
national banks might well be remedied
by better adapting the present system
tenn to the creation of banks in smaller
or by permitting banks of
large capital to establish branches in
such localities as Woul serve the people,
SO regulated and restrained as to secure
their safe n conservative control ard
management. But there might not be
the necessity for such an addition to the
currency by new issue of bank circu-
latfon as at first glance is indicated. II
we should be relieved from retaining a
gold reserve under conditions that con-
strue it the barometer OF our %solvency,
and If our treasury should no longer be
the foolish purveyor of gold for nations
abroad or for speculation and boarding
by our citizens at home, l should expect
to see gold resume it's natural and nor
NAL functions in the business affairs of
the country and cease to be an object of
e to the timid OF our people.
Revenue Receipts No Help.
In the present stage of our difficulty
1T is not easy to understand how the
amount of our revenue receipts directly
affects it. The important question is
not the amount of money received in
revenue payments but the kind of mony
we maintain and our ability to continue
in sound financial condition. We are
considering the governments holdings
of gold as relating to the soundness of
our honey and as affecting our nation
al credit and monetary strength. l.
our gold reserve had never been i'm
paired or If no bonds had ever been is
sued to replenish it. If there had been no
fear and timidity concerning Jul ability
to continue gold payment, if any part
of our were not paid in gold,
and If we could look to u gold receipts
as a means of retaining a safe reserve
the amount of our revenue would be an
influential factor in the problem, but
unfortunately all the circumstances that
might lend weight to these considera-
tons are entirely lacking. In our pres
ent ~predicament no gold is received by
IiS SoNei illSil III payment Oh revenue
charges, nor would there be if the rev.
enues were increased. The receipts of
the treasury, when not In silver certifi-
Gates, consist of United States notes
and treasury notes issued for silver pur-
chases. These forms of money
are only useful to the govern
ment in paying its current or
binary expenses and its quantity
in government possession does not in
the least contribute toward giving rs
that kin of safe financial standing or
condition which Is built on gold alone.
If it is said that these notes If held by
the government ear be used to obtain
gold for our reserve. the answer Is easy.
The people draw gold from the treasury
on demand upon United States notes
and treasury notes. but the proposition
that the treasury can on demand draw
gold from the people upon them would
be regarded in these days with won
der n amusement. Aud even If this
could be done, there IS nothing to pre-
vent those h u parting with their gold
from reGaining it the next day or the
next hour by the presentation of the
notes they received in exchange for it.