The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1895-12-14

the purchase of silver under the law OF
ever. meet with legislative approval
| Another Emergency.
| In February. 1895. therefore, the situation
was exceedingly critical: With reserve
sSionai ala. everything indicated that the
end OF gold payments by the government
The ssss5 Of RSf sSnd
tory and the large Withdrawals Of gold
Immediately succeeding their public sale
81 TReh that STAR large part Of the gold
paid into the po AGAIN suc By tSs
hands Of those who had only temporarily
tss @,n and IN veW Of its
rounding perplexities. It became entirely
apparent to those upon whom the s sba
| gold reserve must. for the third time In less
| than 10 months. be restored by another
OF interest and badly suited to the purpose.
| but that plan must be adopted for their
those realized on previous sales.
The Syndicate Agreement.
An agreement was therefore made with
| q number of financiers and bankers where
by 1t was stipulated that bonds described
coin a 80 yesra efter their date. Bearing i'm
terost at the rate OF four per cent per an
and to SSS
by weight. amounting to little more than
SIS. 600 900.
Thinks Disaster Was Averted.
On the day this contract was made its
a special executive message. IN which II
was stated that more than 600 would
bonds bearing three per cent. interest were
authorized to be substituted for those men,
toned In the contract; The congress hav-
ity to secure this saving. the contract, I'M
modified, was carried out, resulting in n
III iiu day Of July. 1895. The performance Of
this contract not only restored the reserve,
but checked for a time the Withdrawals OF
Confidence and such peace and quiet in
business circles as were of the greatest pos
sible value to every interest that affects
our people
Good Results Not Permanent.
Though the contract mentioned stayed
for a time the tide of gold withdrawal. its
good results could not be p permanent ahe Re
from S107, 81 ,230 ON the Sth day of July.
1895. to $40, 3SS, 966. How long 1t Will remain
esssiry is only matter Of con- lecture, though
quite large Withdrawals for shipment In
fsre %
been withdrawn during the month OF NO
situation stni Critical
The foregoing statement of events and
conditions develops the fact that after in
creasng our Understanding bonded in
aebtedness more than sl62. O0O, 900 to save
our gold reserve we are nearly where We
1888, 966, as against 1854 s77 in February.
On the 2sth of January, 1895, 1t was re-
that more than si72, 200 900 Of gold had been
withdrawn for boarding or shipment dur
that from january /. 1879. to July IA, 1890
q period of more than IL years, only little
between July II. 1890. the date of the pas
sage. of the law for an increased purchase
or within less than 5h years. there was
withdrawn nearly 1876, 0C0, 900. making total
OF more than sio3. 900, 900 drawn from the
treasury In gold since January j, 1879, the
date fixed in 1876 for the retirement of the
United States notes. Nearly 1897, 10000 Of
the gold thus Withdrawn has been paid out
on these United States notes; and yet every
one of the SS46, 600, 900 is still uncanceled and
ready to do service in future gold deple-
tons More than 900 in gold has
since their creation in 1890 been paid out
from the treasury upon the notes given on
the purchase of silver by the government;
and yet the whole, amounting to $l55. O00, 900,
except a little more than s160oo,000 which
have been retired by exchanges for silver
at the request OF the holders. remains out
and more experienced allies In future raids
upon the treasury's gold reserve.
Notes Should Be Retired.
I am convinced the only thorough and
found in the retirement and cancellation
OF our United States notes, commonly
treasurg notes issued By ' the
in payment Of silver purchases under the
act OF 1890. believe this could be quite
notes 6r hnea States Sonds Of
small as well as large denominations,
bearing low rate OF interest. They should
be long-term bonds. thus increasing their
desirability as Investments, and because
their payment could be well postponed to
r sna Mt
increased prosperity and resources they
would be more easily met
Would Restore Confidence.
The increase Of our bonded debt in
"a bn is rn en Tou cfy re a nd
prise in all business circles, the restored
confidence at home. the reinstated faith
stimulation OF every interest and industry
that would follow the cancellation Of the
gold-demand obligations now affecting u.s.
How to fiii tho Void.
The currency withdrawn by the retire.
ment Of the United States notes and treas
ury notes. amounting to probably less
than Ass 600, might be supplied by such
or by an increase in the circulation OF our
national banks Though the aggregate
capital of those now In existence amounts
to more 1864. 600 900, their outstanding cir
culation, based on bond security, amounts
to only about $3.50, 900. They are author
lzeu 10 issue notes amounting TO W 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 one per cent. tax on the
think they should be allowed to issue
circulation equal to the par value of the
bonds they deposit to secure II, and that
the tax on their circulation should be re-
duced to one-fourth of one per cent, which
would undoubtedly meet all the expense
the government incurs on their account.
In addNson, they should be allowed to sub
stitute or deposit in lieu of the bonds now
required as security for their circulation
those which would be issued for the pur-
pose Of retiring the United States notes
and treasury notes. The banks already ex-
listing. IL they desired to avail themselves
of the provisions of law thus modified,
already outstanding. amounting to $47S.-
100000. which would nearly or quite equal
the currency proposed to be Cancelled
Necessity May Not Arise.
But there might not be the necessity for
such an addition to the currency by new
issues of bank circulation as at first glance
Is indicated. II we should be relieved from
maintaining gold reserve under condi-
lions that constitute II the barometer OF
our solvency, and IL our treasury should
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 tho business affairs
of the country and cease to be an object
attracting the timid watch of our people
and exciting their sensitive imaginations.
Nusstgon NJ fluaIItv Not stuu rtstv