The Portland daily press., 1895-12-04

should confidentally expect to see W. ~
! existing national banks or others 10 w
organized avail themselves OF the PR
posed encouragements TO issue clrcuia1,
tlon and promptly fill any vacuum al"
i supply every currency need. ~.
! 1t has always seemed to me that ul1
provisions of law regarding the capltai
OF national banks which operate az " Q
limitation to their location fails to mahe
proper compensation for the suppresslolai
OF state banks. which came near TO ln9
people in all sections Of the country anu
readily furnished them with banking
accommodations and facilities
! Any Inconvenience or EN- barrassmeno
arising from these restrictions on tne
location of national banks might well De
remedied by better adapting the present.
+, systems to the creation of banks IN
! smailer communities or by permitting
banks OF large capital to establish
branches IN such locations as would serve
the people; so regulated and restrained as
to secure their safe and conservative con-
trol and management. But there might
not be the necessity for such an addition
to the currency by new issues of bank CIR
culation as at first glance is indicated.
Ii we should be relieved from maintain
ing gold reserve under conditions that
constitute 1T the barometer Of our SOL
vency and If our Treasury should no
longer be the foolish purveyof of gold
for nations abroad or for speculation and
boarding by our citizens at home, !
should expect to see gold resume its
natural and normal functions in the
business affairs of the country and cease
! to be an object attracting the timid watch
Of our people and exciting their sensitive
! imaeinations
! do not overlook the fact that the can
collation. of the Treasury notes issued
under the silver purchasing act of 1890
would leave the Treasury in the actual
| ownership of sufficient silver. including
| seigniorage, to coin nearly $176. coo, 0O0
in standard dollars. 1t is worthy of con-
sideration whether this might not, from
time to time be converted into dollars or
fractional coin and slowly put into cir
culation, as In the judgment of the Secre-
taTy of the Treasury the necessities OF
the country should require.
Whatever IS attempted should be en-
tered upon, fully approaching the fact
that by careless, easy descent we have
! assent will not be accomplished without
! labor;ous toll and struggle We shall be
wise If we realize that we are financially
Ill and that our restoration to health
may require heroic treatment and I'M
pleasant remedies.
In the present stage of our difficulty it
is not easy to understand how the
affects it. The important question is
not the quantity oft money received in
revenue payments. but the kind of money
we maintain and our ability to continue
in sound financial conditions. We are
considering the governments holdings
of gold as related to the soundness of our
money and as affecting our national
credit and monetary strength
Ii our gold reserve had never been i'm
paired if no bonds had ever been issued
to replenish it /; if there had been no fear
and timidity concerning our ability to
continue gold payments; if any part of
our revenues were now paid in gold; and
if we conla look to our gold receipts as
mean of maintaining safe reserve,
the amount of our rev venues would be an
influential factor in the problem. But
unfortunately all the circumstances that
might lend weight to this consideration
are entirely lacking. In our present pre-
dicament no gold is received by the gov
eminent in payment of revenue charges,
nor would there be If the revenues were
increased. The receipts Of the Treasury
when not in silver certificates, consist of
United States Notes and Treasury notes
issued for silver purchases. These forms
of money are only useful to the govern
ment in paying its current ordinary ex-
penses, and the quantity in the govern
ment possession does not in the least
COLtIlpuu6 tOHdEuS giving us bIldb II luu
of safe financial standing Or condition
which is built on gold alone.
II it is said that these notes if held by
the government can be used to obtain
gold for our reserve, the answer is easy.
The people draw gold from she Treasury
on demand upon United States Notes
and Treasury Notes, but the proposition
gold from the people upon them would
be regarded in these days with wonder
and amusement. And even If this could
be done, there is nothing to prevent those
parting with gold from regaining it the
next day or the next hour by the presen-
tation of the notes they received In OK
change for 1T. The Secretary of the
Treasury might use such notes taken
| from surplus revenue. to buy gold in
| the market. OF course he could not do
| this without paying premium. Private
| holders of gold, unlike the government.
| having no parity to maintain, would not
be restrained from making the best bar
gain possible when they furnished gold
! to the Treasury; but the moment the
on any terms above par he would estab-
| lisb "a general and universal premium
upon it. thus breaking down the parity
between gold and silver which the govern
ment is pledged to maintain, and open
| ing The way to new and serious cOmpli-
cations
| In the meantime the premium would
not remain stationary and the absurd
spectacle might be presented of dealer
selling gold to the government, and
with e. S. notes or Treasury notes in
his hand Immediately clamoring for
its sale. 1t may be claimed that large
revenue and redundant receipts might
| favorably affect the situation under dis
cussion by affording an opportunity OF
retaining these notes in the Treasury
when received, and thus preventing their
presentation for gold. Such retention to
be useful ought to be at least measurably
permanent and this is precisely what Is
prohibited, so far as U. s. notes are con.
cerned.
By the law of 1873 forbidding Their
further retirement, that statute in sc
many words provides that these notes
when received into the treasury, and
belonging 30 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 u S. Notes and Treasury notes In
current transactions when demanded.
and insist on paying out silver alone and
| still maintain the parity between that
metal and the currency representing gold,
| Besides, the accumulation in the Treas
|