Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1895-12-04

the retirement of the United States
notes.
Nearly 1897, 900, 600 of the gold thus
withdrawn has been paid out on these
United States notes, and yet every one
of the s346, 900, 900 is still uncanceled
and ready to do service in future gold
depletions. More than $75,00O,0 Oo IN
gold has since their creation in 1890
been paid out from the Treasury upon
notes given on the purchase OF silver
by the Government. and yet the whole,
amounting to $153, zoo. 600, except
little more than $16.000.000 which
have been retired by exchanges for
silver at the request of the holders,
remains outstanding and prepared to
join their older and more experienced
allies in future raids upon the Treas
ury's gold reserve.
In other words, the Government has
paid in gold more than nine'tenths OF
its United States notes and still owes
them all. 1t has paid in gold about
one-half of its notes given for silver
purchases without extingulshing by
such payment one dollar Of these notes.
When added to all this we are re-
minded that to carry on this astounding
financial scheme the Government has
incurred bonded Indebtedness of $685.
500, 900 in establishing a gold reserve
and of $162, 315, 400 in efforts to main
tain it, that the annual interest charge
on such bonded indebtedness is more
than $11 900, 900, that continuance
in our resent course may result in fur
ther bond issues and that we suffered
or are threatened with all this for the
sake Of supplying gold for foreign
shipments or facilitating it's boarding
at home, a situation is exhibited which
certainly ought to arrest attention and
provoke immediate legislative relief.
A REMEDY SUGGESTED.
l am convinced the only thorough
and practical remedy for our troubles
is found in the retirement and cancel
lation of our United States notes, COM
monty called greenbacks. and the out
standing Treasury notes issued by the
Government in payment OF silver pur-
chases under the act of 1890. l be-
lieye this could be quite readily accom-
plished by the exchange of these notes
for United States bonds of small as
we'll as large denominations bearing a
low rate of interest. They should be
long term bonds. thus increasing their
desirability as investments and because
their payment could be we'll postponed
to period far removed from present
financial burdens and perplexities,
when, with increased prosperity and
resources, they could be more easily
met To insure the cancellation of
these notes and also provide way by
which gold may be added to our cur
rency in lieu of them feature in the
plan should be. all authority given
to the Secretary of the Treasury to
dispose Of the bonds abroad for gold
if necessary to complete the oontem-
plated redemption and cancellation.
permitting him to use the proceeds OF
such. bonds to take up and cancel any
of the notes that may be in the Treas.
ury or that may be received by the
Government on any account. The
increase of our bonded debt involved in
this plan would be amply compensated
by renewed activity and enterprise in
all business circles. The restored con-
fidence at home, the reinstatement of
faith in our monetary strength abroad
and the stimulation of every interest
and industry would follow the cancel
lation of the gold demand obligations
now affecting us. In any event the
bonds proposed would stand for the
extinguishment of troublesome in
debtedness, while in the path we now
follow there turks the menace of un-
ending bonds with indebtedness still
undisoharged and aggravated in every
feature. The obligations necessary to
fund this indebtedness would not equal
in amount those from which we have
been relieved since 1894 by anticipation
and payment. but the requirements of
the sinking fund out of our surplus re-
venues. The currency withdrawn by the
retirement of the United States notes
and Treasury notes. amounting to pro.
baby less than $4S6. 900, 900, might De
supplied by such gold as would be
used on their retirement or by an in
crease in the circulation of our national
banks.
NATIONAL BANK CIRCULATION.
Though the aggregate capital of
those now in existence amounts to
more than 1864. 900. 900 their outstand-
ing circulation. based ON bond security,
amounts to only about 100000, 900.
They are authorized to issue notes
amounting 60 80 per cent of the bonds
deposited to secure their circulation,
but in no event beyond the amount Of
their capital stock, and they are obliged
to pay per cent tax on the circulation
they issue. / think they should be
allowed to issue circulation equal to
the par value of the bonds they deposit
to secure it and that the tax ON their
circulation. should be reduced to one
fourth of per cent. which would un.