Crawford avalanche. (Grayling, Mich.) 1879-19??, 1895-12-12

urdWn ukuiust us muttef VI SPccuio-
tion."
Dealings with Bond Syndicate.
The history of the various bond trans
actions which have been resorted to In or
der to replenish the gold reserve Is re-
viewed and the constant subsequent fall
ings off pointed out. OF the last transac-
tion with the syndicate the President
says: 1.-The performance of this contract
not only restored the reserve, but checked
for time the Withdrawals of gold and
brought on period of restored confidence
and such peace and quiet In business cir
cles as were of the greatest possible value
to every interest that affects our people.
have never had the slightest misgiving
concerning the wisdom or propriety of
this arrangement and am quite willing to
answer for my full share Of responsibility
for it's promotion. believe it averted a
disaster, the imminence of which was
fortunately not at the time generally un-
derstood by our people"
We are now, the President says, nearly
where we started and nearly all of the
gold withdrawn has been paid out on
United States notes, which still remain
uncanceled. Therefore, he says, II am
convinced the only thorough and practic-
able 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 pay
ment of silver purchases under the act
of 1890"
believe this could be quite readily ac-
complshed by the exchange of these notes
for United States bonds of small as well
as large denominations, bearing a low
rate of interest. They should be long
term bonds, thus increasing their desira-
bility as investments, and because their
payment could be well postponed to n
period far removed from present financial
burdens and perplexities, when, with in
creased prosperity and resources, they
| would be more easily met.
To further insure the cancellation of
| these notes and also provide way by
which gold may be added to our currency
| in lieu of them, feature in the plan
| should be an authority given to the Sec
! retary of the Treasury to dispose of the
| bonds abroad for gold if necessary to COM
| plete the contemplated 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 treasury or that may be received by
| the Government on any account.
| The increase of our bonded debt involv-
ed would be amply compensated by renew
| ed activity in all business circles, restored
! confidence at home, reinstated faith in
| our monetary strength abroad and stin-
| uation of every interest and industry
| that would follow the cancellation of the
gold-demand obligations In any event,
| the bonds proposed would stand for the
! eXtinguishment of troublesome indebted
! ness, while in the path we now follow
there turks the menace of unending bonds,
with our Indebtedness still undischarged
and aggravated in every feature. The OBJ
| legations necessary to fund rhis indebted
ness would not equal in. amount those
! from which we have been relieved since
1884 by anticipation and payment beyond
| the requirements of the sinking fund out
of our surplus revenue.
The currency withdrawn by the retire
ment of the United States notes ard
| treasury notes, amounting to probably less
| than S4S6 900, 900 might be supplied by
| such gold as would be used in their retire
| ment or by an increase in the circulation
of our national banks. Though the aggrc-
| gate capital of those now in existence
! amounts to more than S664 100000, their
outstanding circulation, based on bond
| security, amounts to only about $19O,OO.'
| 600. They are authorized to issue notes
amounting to 30 per cent of the bonds de-
| posted to secure their circulation, but
! in no event beyond the amount of their
capital stock, and they are obliged to pay
! 1 per cent tax on the circulation they is.
sue.
l think they should be allowed to issue
circulation equal to the par value of the
bonds they deposit to secure 1t, and that
! the tax ON their circulation should be
reduced one-fourth of 1 per cent, which
would meet all the expense Government
incurs on their account. In addition they
should be allowed to substitute or deposit
in lieu of the bonds now required as Sc
curity for their circulation, those which
would be issued for the purpose of re
! tiring the United States notes and treas
ury notes.
The banks already existing, if they
desired, could issue circulation in addi
ton to that already outstanding, amount
ing to S47S,0OO,0O0, which would nearly
or quite equal the currency proposed tC
he cancelled. At any rate, i should con
! fidently expect to see the existing nation
al banks, or others TO be organized, avail
themselves of the proposed encourage
ments to issue circulation, and promptly
fill any vacuum and supply every cur
! rency need.
1t has always seemed to me that the
provisions of law regarding the capita
of national banks which operate as linn
itation to their location fail to make
proper compensation for the suppression
of State banks, which came near to the
people in all sections of the country ant
readily furnished them with banking ac
commodations and facilities. Any in
| convenience or embarrassment arising
from these restrictions on the location oi
national banks might well be remediet
by better adapting the present system {,
the creation of banks in smaller com
munities or by permitting banks of larg,
capital to establish branches in such 10
caltics as would serve the people-st
regulated and restrained as to secur,
their safe and conservative control ant
management.
But there might not be the necessit,
for such an addition to the currency by
new issues Of bank circulation as at frs
glance is indicated. If we should be re
licved from maintaining a gold reserv,
under conditions that constitute it tn,
barometer of our solvency, and If oui
treasury should no longer be the foolisl
purveyor of gold for nations abroad, oil
for speculation and boarding by our citi
zens ut home, should expect to see golt
resume its natural and normal functions
in the business affairs of the country ant
cease to be an object attracting the timi,