The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-12-03

I o
necessary, to complete the contemplated re-
| demption and cancellation permitting him use
of the proceeds of such bonds to take up and
cancel any of the notes that may be in the
treasury or that may be received by the gov
eminent on any account. The increase of our
bonded debt involved in this plan would be
amply compensated by renewed activity and en-
| terprise in all business circles, the restored
confidence at home, the reinstated faith in our
| monetary strength abroad. and the stimulation
| of every interest and industry that
| would follow the cancellat alton of the
| gold demand obligations now affecting US.
In any event the bonds proposed would stand
| for the extinguishment Of a troublesome in
| debtedness, while in the path now follow
there turks the menace of intending bonds with
our Indebtedness still undischarged and aggra-
| waited in every feature The obligation neces-
sary to find this Indebtedness would not equal
in amount those from which have been re-
| lieved since 1884 by anticipation and payment
| beyond the requirements of the sink ing fund
out of our surplus revenues. The currency
| withdrawn by the retirement of the
| United States notes and treasury notes
amounting to probably less than S6,OJ0,0O0
might be supplied by such gold as would be
used on their retirement by an increase in
| irregulation of our Nat ional banks. Though
| the aggreg ate capital of these existence
amounts to more than $656000,000, their out
standing circulation based on bond sec urity
| amounts to only about Sl90000,0 GOO They are
authorized TO issue notes amounting to ninety
per cent of the bonds deposited to secure their
| circulation, out IN no event DeyO0Q the amount
of their capital stock they are obliged to pay
one per cent tax on the circulation they ISSUE
l think they ought to be allowed to issue cir
culation equal to the par value of the bonds
| they deposit to sec ure it, and that the tax
| their circulation should be reduced to one
fJurth of one per cent which would undoubt-
eddy meet all the expenses the COVER nment
would incur on their account. In addition
they should be allowed to subs titute deposit
ia lieu OF the bonds now required as security
| for their circulation those which would be is
| sued for the purpose of retiring the United
States notes and treasury notes. The banks
already existing, if they desired to avail Ihem-
selvesw OF the provisions of law
| thus modified could issue circulation
in addition to that already outstanding,
amounting to $47S, O0). 000 which would nearly
OF quite equal the currency proposed to be
| cancelled. At any rate, should confidently ex-
| pect to see the existing national banks OF
others to be organized all themselves of the
proposed announcements to issue circulation
and promptly fill any vacuum and supply every
| currency q. 1t has always seemed to me
that the provisions of law regarding the ca p
| itat of national banks which operate as a linn
| itation to their location fails to make proper
| compensation for the suppress ion of state
banks, which came near to the people in all sec
| tions of the country and readily furnished
them with banking accommodations and
| facilities.
Inasmuch as the withdrawal of our gold has
| resulted largely from fright, there is nothing
| apparent that will prevent its continuance
| REQUIRE nee, with its natural conseQ uences, ex-
| cept such a change in our financial m thOds as
i will reassure the frightened and make the de-
sire for gold less intense. 1t is not clear how
an increase in revenue, unless it be in gold and
! satisfactory to those whose only anxiety is to
gain gold from the governments store. 1t
not, thor efore, be sa fe to rely upon increased
| revenues for present
| troubles. It is possible til at the suggestion of
| increased revenue as remedy for the difficult
I ties we are considering may have originated in
an intimation distinct allegation til the
bonds which have been issued ostens bly, to
repl cnish our gold reserve were really issued
to supply in efficient revenue. Nothing can be
further from the truth. Bonds issued to
obtain gold for the N aintenance of our La tioaaI
| credit
I Free Silver.
While have endeavored to make a plain
statement of the disordered condition of our
currency and the present dangers menacing our
prosperity and to suggest a way which
lea Is to safer financial system
l have constantly had in mind the fact that
many of my countrymen, whose sincerity l do
not doubt, insist that the for the ills
threatening may be found in the single and
simple remedy of the free coinage Of silver.
They contend that our mints shall be at once
thr ,wn open to the free and unlimited and
independent coinage of both gold and silver
dollars of full legal tender quality, regardless
of the action of any other COVE rnment, and in
full view of the fact that the ratio between
the metals which they suggest calls for
at the present standard and only fifty cents in
| intrinsic worth of silver the silver dollar.
We're there Infinitely stronger reasons than
can be adduced for hoping that such action
would secure for US blmctallic currency NOV
ing lines of parity an experiment so novel
and hazardous that proposed might well
sta gger those who believe that stability is an
| imperative condition of sound money. No gov
| eminent. no hum contrivance or act of legis-
lation has ever been a bic to hold the two metals
together in free coinage at ratio appreciably
different from that which is established in tho
markets of the world.
In the light of these experiences, which ac-
cord with the experiences of other nations,
there is certainly no secure ground for the be-
lief that act of Congress could now bridge
an equality of so per cent between gold and sill
| yer at present ratio, nor is there the least
possibility that our country. which has less
than one seventh of the silver money in the
| world could by its action raise not only our
own, but all silver, to its lost ratio with gold.
Our attempt to accomplish this by the FREQ
coinage of silver at a ratio differing from the
actual relative value would be the signal for
complete departure of gold from circula-
ton, and the collapse of our entire credit sys-
tenn.
The past is full of lessons, teach;n not only
the economic dangers, but the national i'm
morality that follows in the train of such ex-
pedient. ] will not believe that the American
people be persua Sed. after sober de;ibera-
ton. to jeopardze their nations prestige and
proud standing by encouraging financial nos
trums, nor that they will yield t. the false al
| lurements of cheap money, when they lie II lie
that it must result in the weakening of that
| fnancirl integrity and rectitude which thus far
sn our history has been SO devotedly cherished
as one of the traits of true AInericanism
/ have ventured to express myself these
| subjects with eame stness and plainness of
speech because cannot rid myself of the belief
| that there turks in the proposition for the free
coinage of silver strongly approved and
SO enthusiastically advocated by multitude
or my cauntrymen q serious menace to our pros
perity and insidious temptation of our people
to wander from the allegiance they owe to
public and pr. vate integrity. 1t is becau. 6 do
not distrust the good faith and sincerity of
those who press this scheme that l have
imperfectly but with zoal sumbitted my
thoughts upon this moment Dus subject.
I cannot resrain from begging them
to re-examine their views and beliefs in the
lieht of patriota. reason and familiar experi.