The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1895-12-06

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ness of 9. 0 10 in .tabn shi1g g I'D reserve
and of si6,.3l 10 in enlrts to MI ntain it
1 am convinced the onlv thDrou h and prac-
tieable remedy for our troub es IS found in the
retir -ment and can Ell alton OF our United
states notes. mmOnl called greenbacks aud
the outSta din tire sury notes issued b! the
government In PAYMENT Of silver purchased
un Ter the act OF 1884,
The currency wi hdravn by the retirement
OF the United stale notes and treasury notes,
amounting to probably less than r6.4OJ0 ;,
might be supplied by such gold as would be
use on their retirement or bv an increase in
the circul ton OF our national banks Though
the ,gregate capital of these now in existence
amounts to more than 666DOi.O Their out
standing circulation blsei on bond security
amounts to enly about ',nO1 on.
think they ought to he al owed to issue cir
culation equal to The par value Of the bonds
they depOst to secure it. and that the Tx on
their circulation should be reduced tn 4 OF pc
cent. which Won undoubtedly meet all the
expenses the government incurs on their sc-
count. do not over oOk the fact tn 1t the can
relation OF the treasury notes issued unler
the silver purchasing act OF 1897 would lie ave
the treasury in the actual ownership OF SUM-
cient silver. including seigniorage to coin
nearly sITs.0O.M0 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
eulatiOA
In the present stage OF our dlficulty IL 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 eOnsid-
ering the governments holding of gold ~ re-
lated to the Soundness OF eur money and as az
fecting our national credit and monetary
strength. II our gold reserve bad never been
impaired: il no bonds had been issued to re-
plepish: II there had been no fear and
timidity concerning our ability TO" continue
gold payment IS any part OF our
revenues were now paid in gold:
and if We could look to oer gold receipts as u
means OF maintaining safe reserve. the
amount OF our revenues would be On infiuen-
tial faSaOr In the problem. But unfortunately
all the ekyc umstance3 that might lend weight
TO this consideration are entirely lacking. In
our present Prsdicsment no gold IS received by
the governmenrin payment OF revenue charges,
nor would there be 10 the revenues were In
creased. The receipts Of the treasury when
nos in silver eerttfestas consist OF United
States notes and treasury notes. Issued for sill
yer purchases These forms Of money are only
usefntto the government In paying Its cur
rent ordinary expenses and its quantity
In government possession does not In the
least contribute toward giving US the kind Of
safe financial standing OF condition which Is
built on gold alone Htt IL said that these
notes il held by the government can oe used
10 obtain gold for our reserve. the answer Is
easy. The people draw gold from ths treas
ury on 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 il this could be
done, there is nothing to prevent those thus
parting with their gold from regaining 10 by
the next day or the next hour by the preSenta-
tion of the notes theyreceved.in exchange for IL.
The secretary OF the treasury might use such
notes taken from q surplus revenue TO buy
gold in the market on 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, AMI 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 bands Immediately clamoring for lis re-
turn and n resale at Il higher premium. II
may b. claimed that l rye revenue and re-
duced receipts miGit favogabiy affect the still
alton under diScu siuG 10y afOTdiDg Ofpor-
tunity aifectl. thest notes in the treasury
when resolved. an TIA, preventing their PIE
sentGtiOn FOX gold.
Such retention OF thc n tIl ou.,,l: I, be a;
least meaSurabiy permanent. Az! this Il pre-
cIsely what is prohibited ~ f'r Is Cn.tc
States notes are CUa-C-n u.
Be- the Law Of 1913. forbi Hing t-eir future
retirement, that s.l..-.- IN 50 MdaJ TOrds
provides that these notes when received into
the treasury and belonging N tho Vn'tcd
States shall he paid out again and kent in
circulation" II will mVreOVG. DC ECG1IlJ seen
that the government could not refuse to pay
out Cnlted States notes and treasury notes in
current transactions when demanded aud in
sist on paying out silver alone and still
maintain the parity between that metal and
the currency representing gold. Besides the
accumul tion I'm the treasury OF currency Of
any kind exacted from the people through tax
alton Is justly regarded as an evil and il can
not proceed far without vigorous protest
against an unjustitiabie retention OF money
from the business OF the country aud a de-
nunciation Of scheme OF taxation which
proves itself to be unjust when IL takes from
so much In excess Of the needs OF government
support that large sums can BE- gathered and
kept 10 the treasury such condition was a
peril In time OF surplus revenue and led the gov
eminent 20 restore currency to the people by
the purchase OF its unuatured bonds az large
premium and by a large increase OF FRS depoS-
its in national banks. and we easily remember
that the abuse of treasury accumulation has
furnished most persuasive argument in favor
OF legislation radically reducing our tarih tax
alton.
Perhaps IL Is supposed that sufficient rev.
euue receipts would in a sentimental wav i'm
prove the situation by inspiring confidence in
our solvency aud sllaying the fear OF pecuniary
exhaustion. And vet 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 o. We had and
the question whether or not our current re-
ceipts met our current expenses has not on
tered into the estimate of our solvency. OF
course the general state OF our funds exclusive
OF gold was entirely immaterial 10 the foreign
creditor and investor. His debt could only be
paid in gold and hi only concern was our abil-
ity 70 keep on hand that kind OF money.
Inasmu b as the withdrawal % our gold has
resulted largely from fright. there il nothing
apparent that will prevent its continuance or
recurrence. with its natural consequences. ex-
cept such "A change in our financial methods as
will reaSSure the frightened and make the de-
sire for gold less intense. II is not clear how
an increase in revenue. unless IL he in gold. can
be satisfactory 10 those whose only anxiety is TO
gain go d from the governments store IL can
,if,f therefore be. safe to reiv uDDn Increased