The Coconino weekly sun. [volume] (Flagstaff, Ariz.) 1891-1896, 1895-12-12

States notes. commonly called greenbscks ant
the outstanding treasury notes issued by the
government In payment Of silver purchased
under the act Of 1890.
The currency withdrawn by the retirement
Of the United States notes and treasury notes
amounting to probably less than 96O00.O)0
might be supplied by such gold as would be
used on their retirement or by an increase In
tho circulation OF our national banks Though
the aggregate capital OF these now In existence
amounts to more than s868, 900, 900. their out
standing circulation based on bond security
amounts to only about $I9. 100000.
think they ought to be allowed to issue cir
culation equal to the par value of the bonds
they deposit to secure it, and that the tax on
their circulation should be reduced to v OF per
cent. which would undoubtedly meet oil the
expenses the government fncurs on their &C
count. 1 do not overlook the fact that the cam
collation. OF the treasury notes issued under
the silver purchasing act Of 1890 would leave
the treasury In the actual ownership OF SUM-
cient silver, including se!gniorage to coin
nearly $7S,0W,Do0 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
cuation.
In the present stage OF our difficulty 1t 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 consid-
ering the government holding OF gold as re-
lated to the soundness OF our money and Us af-
fecting our national credit and monetary
strength. II our gold reserve bad never been
impaired IL no bonds had been issued to re-
plenish: II there had been M fear and
timidity concerning our ability to continue
gold payment: II any part OF our
revenues were now paid in gold
and II we could look to our gold receipts as o
means OF maintaining safe reserve, the
amount Of our revenues would be an infiuen-
tial factor in the problem But unfortunately
all the circumstances that might lend weight
to this consideration are entirely lacking. In
our present predicament no gold is received by
the government in payment Of revenue charges,
nor would there be II the revenues we're in
creased. The receipts CT the treasury when
not In silver certificates consist OF United
States notes and treasury notes. issued for sill
yer purchases. These forms OF money are only
useful to 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 or condition which Is
built on gold alone II 1t Is said that these
notes II held by the government can be used
TO obtain gold for our reserve, the answer Is
easy. The people draw gold from the 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 II this could be
done, there is nothing to prevent those thus
parting with their gold from regaining 1t by
the next day or the next hour by the presenta-
tion OF the notes theyreceivedin exchange for 1t.
The secretary Of the treasury might use such
notes taken from q surplus revenue to buy
gold In the market OF 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. and 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 hands Immediately clamoring for its re-
turn and resale Mt higher premium. 1t
may be claimed that large revenue and re-
duced receipts might favorably affect the situ-
alton under discussion by arording an oppor-
tunity affecting these notes in the treasury
when received. and thus preventing their pre-
for gold
Such retention OF the metal ought to be at
least measurably permanent, and this is pre-.
tiscly what is prohibited so far as United
States notes are concerned.
BY the law OF 1873. forbdding their future
retirement. that statute in so many words
provides that these notes when received into
the treasury and belonging to the United
States shall be paid out again and kept in
circulation. 1t will moreover be readily seen
that the government could not refuse to pay
out United States notes and treasury notes In
current transactions when demanded and in
sist on paying out silver alone and still
maintain the parity between that metal and
the currency representing gold. Besides the
accumul tion In the treasury OF currency of
any kind exacted from the people through tax
alton Is justly regarded as an evil and it can
not proceed far without vigorous protest
against an unjustihable retention OF money
from the business OF the country and q de-
nunciation OF o scheme OF taxation which
proves itself to be unjust when 1t takes from
The earnings and income OF the citizen money
80 much In excess Of the needs Of government
support that large sums can be gathered and
Kept In the treasury. Such condition was
peril In time Of surplus revenue and led the gov
to restore currency to the people by
he purchase OF its unm ltured bonds at large
premium and by large increase of its depos-
Is In national banks, and We easily remember
hat the abuse Of treasury accumulation has
furnished most persuasive argument in favor
If legislation radically reducing our tariff tax
Ition.