The Butler weekly times., 1895-12-05

government has incurred a bonded indehtei-
ness OF ss5 500 o0o in establishing gold rese-se
and of sl6.. sla. 400 in efforts 20 maintain it.
l am convinced the only thorough and prae-
ticaeie remedy for our troubles Is found in the
retirement and cancellation II our United
States notes. commonly called greenoaekS and
the outstanding treasury notes issued by the
government in payment of silver purchased
under the act Of 1920
The currency withdrawn by the retirement
OF the United States notes and treasury notes,
amounting TO probably less than sS-eoop.
might be supplied by such gold a> would be
used on their retirement or by an increase IN
the circulation of our national banks Though
the aggregate capital Of these now IN existence
amounts TO more than S6s6, ,0oo. 900 their out
standing circulation based on bond security
amounts TO only about si9a,ooo ooo.
think they ought 10 be allowed 10 issue cir
cuIa1ion equal to the par value Of the bonds
they deposit TO secure il. and that the tax on
their circulation should be reduced - !. Of peg
cent. which would undoubtedly meet all the
expenses the government iucur> On their ac-
count. do not overlook the fact that the can
collation. OF the treasury notes issued undc'
the silver purchasing act % 1870 would leave
the treasury in the actual ownership of sum-
cient silver. including seiSnlorage 10 eoir
nearly sl-s.oo0,0eo in standard dollars II Is
worthy Of consideration whether this might
not, from time to time, be converted into dol
lars or fractional coin aud SLOWLY put into cir
culation
In the present stage OF our difa.ultY it 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 70 continue
in sound financial conditions We are conSid
ering the government holding Of gold re-
lated to the soundue>s of our money and as af-
fecting national credit and monetary
strength. II our gold reserve had never been
impaired. If no bonds had been issued 10
pienish: if there had been no fear and
timtdity concerning our ability To continue
gold payment; II any part OF our
revenues were now paid in gold;
and II could look to our gold receipts as a
means Of maintaining safe reserve, the
amount Of our revenues would be infuen-
tiai factor i'll 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,
would there be if the revenues were in
creased. The receipts OF 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 the kind Of
safe financial standing or condition which Is
built on gold alone If il 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 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 If this could be
done, there is nothing TO prevent those thus
parting with their gold from regaining it by
the next day or the next hour by the presenta-
tiou OF the notes theyreceivedin exchange 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 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 10 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
ioght be presented Of an alien selling gold to
the government. and with United States notes
in his hands Immediately clamoring for its re-
may be claimed that large revenue and re-
duced receipts might favorablv affect the situ-
alton under discussion by affording an oppOr-
tunity affecting these notes in the treasury
when received, and thus preventing their pre-
Sentation for gold
Such retention of the metal ought to be at
least measurably permanent, and this is pre-.
cisely what is prohibited far United
States notes are concerned.
By the law OF 1873. forbiddng 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 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 unjustifable retention OF money
| from the business of the country and de-
nunciation of a scheme OF taxation which
proves itself to be unjust when IL takes from
| the earnings and income of the citizen money
| so much in excess OF the needs of government,
| support that large sums can be gathered and
| kept In the treasury. Such a condition was 9
peril In time OF surplus revenue and led the gov.
| ernment to restore currency to the people by
| the purchase of its unm atured bonds at a large
| premium and by large increase OF it's depos.
| ies in national banks, and We easily remember
| that the abuse OF treasury accumulation has
| furnished most persuasive argument in fayol
| of legislation radically reducing tariff tax.
| alton
| Perhaps it is supposed that sufficient rev
| euue receipts would in a sentimental way i'm
| prove the situation by inspiring confidence i,
| our solvency and allayin2 the fear OF pecuniar,
| exhaustion And yet all through our struggle
| to maintain our gold reserve there never ha
| been any apprehension as to our ready abiiit,
to pay our way with such money as We had an,
| the question whether not current re
| ceipss met our current expenses has not en-
| tered into the estimate of our solvency o
| course the general state OF our funds exclusiv
| of gold was entirely immaterial to the foreia1
| creditor and investor. His debt could only b
| paid in gold and his only concern was our abil
| ity to keep on hand that kind Of money
Inasmuch as the withdrawal Of our gold la
| resulted largely from fright. there is nothln
| apparent that will prevent It's continuance 0
| recurrence, with its natural consequences ex
cept such change in our financial methods a
| will reassure the frightened and make the dc