The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1895-12-12
The Currency Question.

A lengthy review follows Of the growth
or our currency, especially the United
States notes and treasury notes and the con-
sequent endless drain on the gold reserve
Of the treasury.
The president states that .'among the
causes for this constant and uniform shrink
age IN this fund, may be attributed the
great falling off In exports under the opera
ton of the tariff law. until recently in
force. which crippled our exchange Of com
modities with foreign nations and necessi-
tated to some extent the payment of our
balances In gold. The unnatural infusion
Of silver into our currency and the increas-
Ing agitation for Its free and unlimited coin
age, which have created apprehension as
To our disposition or ability to continue
gold payments; the consequent boarding Of
gold at home and the stoppage of invest
ments or foreign capital. as well as the re-
turn OF our securities already sold abroad;
and the high rate Of foreign exchange
which induced the shipment Of our gold
To be drawn against, as a matter OF spec
ulation.''
The history OF the various bond
transactions which have been resorted to
In order to replenish the gold reserve, Is
reviewed and the constant subsequent fall
Ing of pointed out. or the Last transaction
with the syndicate, the president says:
The performance OF this contract not
only restored the reserve. but checked for
u time the Withdrawals OF gold and brought
on a period Of restored confidence, and such
peace and quiet In business circles rs were
OF the greatest possible value to every
interest that affect our people. l have never
had the slightest misgiving concerning the
wisdom or propriety of this arrangement.
and am quite willing to answer for my
share Of responsibility for its promotion. l
believe 1t averted a disaster, the I'm
minence Of which was fortunately not at
the time ppnpranv uDHnrstnnl NV n
people"
We are now, the president says, nearly
where We started, and nearly all Of the
gold Withdrawn has been paid ont on
United States notes, which still remain
uncance.led. Therefore, he says. 81 am
convinced the only thorough and practicable
remedy for our troubles Is found in the
retirement and cancellation of our United
States notes, commonly called greenbacks,
and the outstanding treasury notes issued
by the government in payment Of silver
purchases, under the act Of 1890"
The method he proposes Ia to exchange
for bonds, small and large. and bearing d
low rate of interest, and for a long term.
The increase In the bonded debt would
be compensated by renewed activity and
enterprise and restored confidence. A
troublesome Indebtedness would be can
celIed instead Of the menace Of unending
bonds.
THE obligations necessary to fund this
Indebtedness would not equal in amount
those which we have been relieved since
1884 by anticipation and payment beyond
the requirements Of the sinking fund, out
of our surplus revenues.
1.-The currency withdrawn by the retire
ment Of the United States notes and treas
ury notes, amounting to probably less than
SiS6, 900 might be supplied by such gold
az would be used on their retirement, or by
an Increase In the circulation Of our nation
al banks. l think they should be
allowed to Issue circulation equal to the
par value Of the bonds they deposit To Sc
cure, ind that the tax on their circulation
should be reduced TO one-fourth OF one per
cent, which would undoubtedly meet all
the expense OF the government Incurred
on their account. In addition. they should
be allowed to substitute or deposit in lieu
Of the bonds now required As security for
their circulation. those which would be-
issued for the purpose Of retiring the
Upited State notes and treasury notes"