Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1895-01-31

a manner as the preservation OF our |
honor and national solvency !
demands we should not destroy or
even imperil our ability to supply our i
selves with gold for that purpose.
While l am not unfriendly to silver,
and while | desire to see it recog
nized to such an extent as is consist
ent with financial safety and the pres
ervation of national honor and credit,
l am not willing to see gold entirely
banished from our currency and fl
nances. To avert such a consequence,
l believe thorough and radical rem
edical legislation should be promptly
passed.
] therefore beg the congress to give
the subject immediate attention. In
my opinion the secretary of the treas
lry should be authorized to issue bonds
of the government for the purpose Of
procuring and maintaining sufficient
gold reserve and the redemption and
cancellation of the United States legal
tender notes and the treasury notes
and the treasury notes issued for the
purchase of silver under the law of
July II, 1890. We should be relieved
from the humiliating process of issu-
ing bonds to procure gold to be imme-
diately and repeatedly drawn out on
these obligations for purposes not re-
lated to the benefit of our government
or our people. The principal AMI in
terest of these bonds should be pay
able on their face in gold, because
they should be sold only for gold or
it's representative and because there
would now probably be difficulty in
favorably disposing of bonds not con-
tanning this stipulation.
I suggest that the bonds be issued
multiples and that they bear interest
at a rate not exceeding 3 per cent.
per annum. l do not see why they
should not be payable fifty years from
their dates. We of the present gen
ration have large amounts to pay if
we meet our obligations and long
bonds are most salable. The secre-
tary 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 course, 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 for circulation, and such
banks should be allowed to issue cir
culation up to the face value of these
or any other bonds so deposited, eX-
cept bonds outstanding bearing only
2 per cent. interest and which Sell at
less than par National banks should
not be allowed to take out circulating
notes of less denomination than $40,
and when such as are now outstanding
reach the treasury, except for redemp-
ton and retirement, they should be
Cancelled, and notes of denominations
of $40 and upwards issued in their
stead. Silver certificates of the de-
nomination of $40 and upwards should
be replaced by certificates of denOmi-
nations under $40.
AS a constant means for the main
tenance of a reasonable supply of gold
in the treasury our duties on imports
should be paid in gold, allowing all
other dues to be paid in any other
form of money.
I believe all the provisions l have
suggested should be embodied in our
laws if we are to enjoy a complete re-
instatement of a sound financial con-
dition. They need not Interfere with
any currency scheme providing for the
increase of the circulating medium
through the agency of national or
state banks since they can easily be
adjusted to such a scheme. Objection
has been made to the issuance of in
terest-bearing obligations for the
purpose of retiring the non-interest-
bearing legal tender notes. In point
of fact, however, these notes have
burdened us with a large load of in
terest and it is accommodating. The
aggregate interest on the original is
sue of bonds, the proceeds of which
in gold constituted the reserve for the
payment of these notes, amounted to
S70,326, $50 ON January 1, 1895, and the
annual charge for interest on these
bonds and those issued for the same
purpose during the last year will be
SO, 145 GOO dating from January 1, 1895.
While the cancellation of these notes
would not relieve us from the obliga-
tons already incurred on their account
these figures are given by way of sug-
costing that their existence has not
been free from interest charges and
that the longer they are outstanding,
judging from the experience of the
last year, the more expensive they will
become.
In conclusion, says the president,
desire to frankly confess my reluc-
tance to issuing more bonds in pres
ent circumstances and with no better
results than have lately followed that
course. | cannot; however, refrain
from adding to an assurance of my
anxiety to cooperate with the present
congress in any reasonable measure of
relief, an expression of determination
to leave nothing undone which fur
nisheS a hope for improving the situa-
ton or checking a suspicion of our
Discrimination or disability to meet
with the strictest honor every national
obligation.
THE MARKETS.