The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-12-04

because their payment could be well
postponed to a period far removed
from present financial burdens and
perplexities when. with increased pros
perity and resources. they could be
more easily met To insure the can
collation. of these notes and also pro-
vide 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 secretary of the
treasury to dispose of the bonds
broad for gold: if necessary. to COM
plete the contemplated redemption and
the proceeds of such bonds to take up
and cancel any notes that may be in
the treasury or that may be received
by the government on any account
The increase OF our bonded debt in
volved in this plan would be amply
compensated by renewed activity and
enterprise in all business circles. The
restored confidence at home. the rein
stated faith in our monetary strength
abroad. and the stimulation of every
interest and industry would follow the
cancellation of the gold demand obli-
cations now affecting US.
A MENACE OF UNENDING BONDS.
In any event. the bonds proposed
would stand for the eXtinguishment Of
a troublesome Indebtedness, while in
the path we now follow there turks the
menace of unending bonds with our
Indebtedness still undischarged and
aggravated in every feature. The obli-
cations necessary to fund this in
debtedness would not equal in amount
those from which we have been re-
lieved since 1884 by anticipation and
payment by the requirements of the
sinking fund out of our surplus
revenues
HOW TO SUPPLY a CURRENCY
The currency withdrawn by the re-
tirement of the United States notes
and treasury notes amounting to pro-
baby less than s4s6,OO0,0O0, might be
supplied by such gold as would be
used on their retirement or by an in
crease in the circula ton of our national
banks. Though the aggregate capital
of these now in existence amounts to
more than 1864, 900, 900, their outstand-
ing circulation, based on bond security,
amounts to only about 190,00G000.
They are authorized to issue notes
amounting to 80 per cent of the bonds
deposited to secure their circulation.
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.
NATIONAL BANK CIRCULATION.
I think they should be allowed to is
sue 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 allowed to substitute or
deposit in lieu of the bonds now re-
quired as security for their circulation
those which would be issued for the
purpose of @etiring the United States
notes and treasury notes. The banks
already existing. if they desired to
avail themselves of the provisions of
law thus modified. could issue circula-
ton in addition to that already out
standing, amounting to s47S 200, coo,
which would nearly or quite equal the
currency proposed to be cancelled. In
any event, L should confidently expect
to see the existing national banks or
others to be organized avail them
selves of the proposed encouragement
to issue circulation. and promptly fill
any vacuum. and supply every cur
rency need.