Waterbury evening Democrat., 1895-01-29

metallism, . proper solution of the ques- tion now pressing upon us only requires recognition of gold as well as silver and a concession of it's importance. rigLtfully or wrongfully acquired, as a basis of na- tional credit. a necessity in the honorable discharge of our obligations, payable in gold, aud badge of solvency do not un- derstand that the real friends of silver de- sire condition that might follow inac- tion or neglect to appreciate the meaning of the present exigency if it should result 1 in tho entire banishment of gold from our financial and currency arrangements. Besides the treasury notes which cer- tainly should be paid in gold. amounting 1 to nearly S5oO. 900. 900. there will fall due l in 1904 S100, coo. 900 in bonds. issued dur 1 ing the last year. for which WIG have re- ceived gold. and in 1907 nearly S60o, O0O,- 900 of per cent bonds. issued in 1877. l Shall the payment of these obligations in | gold be repudiated? If they are to be paid l in such a manner as the preservation of our national honor and national solvency demands, wo should not destroy or even 1 imperil our ability to supply ourselves with gold for that purpose
 i While am not unfriendly to silver, | and whilo l desire to see it recognized to ! such an extent as is consistent with finan- cial safety and the preservation of national ' honor and credit am not willing to sec
 
 | and finances. To avert such a consequence believe thorough and radical remedial legislation should be promptly passed I therefore beg the congress to give the sub ject immediate attention.
 Small Bonds Suggested.
 "In my opinion, tho secretary of the l treasury should be authorized to issue bonds of the government for the purpose ] of procuring and maintaining a sufficient ! gold reserve and the redemption and can 1 cellation of the United States legal tender l notes. and the treasury notes issued for 1 the purchase of silver under the law of Ju- { Iy Il. 1890 We should be relieved from the humiliating process of issuing bonds l to proC ure gold to be immediately and re- l peatedly drawn out on these obligations forpurposes not related to the benefit of our government or our people. The prin- l cipal and interest of these bonds should be l payable on their face in gold because they l should be sold only for gold or its repre- sentative and because there would =Iow probably be difficulty in favorably dispos- ing of bonds not containing this stipula- ton. l suggest that the bonds be issued l in denominations of SEQ and $50 and their 1 multiples and that they bear interest at a rate not exceeding per cent per annum. do not see why they should not be pay able 30 years from their date. We of the present generation have large amounts to pay 1T we meet our obligations. and long bonds are most salable. The secretary of the treasury might we'll be permitted at his discretion to receive on the sale of bonds the legal tender and treasury notes to be retired, and of cou' so, when they are thus retired or redeemed in gold. they should be cancelled.
 These bonds under existing laws could be deposited by national banks as security T allowed to issue circulation up to tho face value of these or any other bonds so de- posited. exc pt bonds outstanding bearing ; only per cent interest, and which sell in the market at less than par. National banks should not be allowed to take out circulating notes of a less denomination than SlO, and when such as are now out standing reach the treasury, except for re- demption and retirement, they should be cancelled and notes of the denomination of Sl0 and upward issued in their stead. Silver certificates of the denomination of S1O and upward should be replaced by cer 1 fiflcates of denominations under $l0.
 Only Duties to Re Paid In Gold.
 As q constant means for tho mainte- nance of a reasonable supply of gold in the treasury our duties on imports should be paid in gold. allowing all other dues to the government to be paid in any other form of money.
 l II believe all the provisions have sug- gestcd should Ee embodied in our laws if we are to enjoy complete reinstatement of a sound financial condition. They need not interfere with any currency scheme providing for the increase of the circulat- ing medium through the agency of na- tional or state banks. since they can easily be adjusted to such scheme. Objection has been made to the issuance of interest bearing obligations for the purpose of re- tirihg the nOninterest bearing legal tender notes. In point of fact. however, these notes have burdened us with a large load of interest. and 1t is still accumulating. The aggregate interest on the original issue l of bonds, the proceeds of which in gold con- stitutcd the reserve for tho payment of these notes, amounted to S10 326, 250 on Jan. l, 1895, and the annual charge for in terest on these bonds and those issued for tho same purpose during the last year will be S9, l45. 900, dating from Jan. l, 1895.
 While the cancellation of these notes would not relieve us from the obligations already incurred on their account. these figures are given by way of suggesting that their existence has not been free from interest charges, and that the longer they