The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1895-12-05


authorize the iS5lc of bond piyaD.c by their
term, il wod AMI beIrin- interest ut the ra
Cf tIrce pr cent pc: t.llI II might within ten
DAYS be substituted at par for tho four p
cent bonds described IL tire agreement. On
the dat this contract WIS mad, it terms we're
cornmu licatcd to con r.sS by sDccial cXecu-
the mes sc, i'll " irh it vas stdtcl that
more II IN sixteen m.lli,ls OF dollars w1ald De
saved TO tn, government if Old bonds bearing
three per cent Interest werr auth jri2 ii to tie
SUBS t:tI,cl for these mcrt:on .d in conir ct.
lhe congress having declined TO grant The
necessary authority u secure tliS SAVING
contract uamoi tie was carried out. c>u.t NJ
n Il gold re- cryc amouHiia: to lu1.3'l2 y Ooa |.
Sta ca; of July. 50, h u "a the cont act ca
toned stl cd for a time the ii { Of god WITH
drawal. Its good results could not b; pcrin;.-
nent. lee L with lrlwA.s hlvc rcdu,cd me
reserve from :10-.5Il ; 80 tn 6th Il ~ ot .iuy.
$50 to ~ .i}.Dii About iliOU.HUj has tc, Il
withdraw ,iu:ilg ic moa:h of .Iove nber.
Ihc f0rci: statement OF events ana condi-
tonS Geve ops tn fact TINT Gf,e- Increasing
our int"re t-5ear,n; bonded Indebtedness s
more than Sl6,.000". to sav2 Our goli re-
serve. We are nearly where we started. havir g
now in such reserve >13.3 5.9ji. as 81 n~t
s65 i3s.31. in FebruIr:. 1874. wEel the first
bonds werc i-suel Tnon[l the amount OF
gold drawn fro II the treasury appears TO lie
very large. a gathered rom tie facts ana Ill
larger. consider sbe su n hlvin, Occn &c
qui ed b; the treasury Within the several peri
OILS stated Nichp the SIC q bo1dS
On 18th Of .JlnIar;. So it WAS reported
By the secret ry OF the trcl 5lry tn 1t mo c
than 81. DOj.0D ia Eo.i had been Withdrawn
for boarding on ship n;a durin the year t.
cadinc. Ee now reports that from January |,
1879. TO Jc!; a. 1873 IL pcrio of more than II
wears. only a lite ovec IS, ,1.OD was with
dawn ard III t betwecl July !. 1897. the di c
OF the D - >;l-u of the llw for an increased pui-
chase of silver. and the i>t day of Dccenbt r,
lS.5 or within less ii IN tiy" AL Il half yctTs,
there was with ,rawn nclr!y ~2'5MO"O) max
i.g Il total of mo than >4D..0pGD dr twa frorl
the treasury in gold sine January l. 1879,
the date fixed in iSD for tlc retire
ncnt of the UAiicd It 'tnI notes
Nearly S;.7,0jJOl0 of the gold thus with rawn
has tecn paid out on these United StateS
notes: ani yet every one CT the il6.0OO.OOo IS
still cancelled md ready to Go service IN fu-
tire gold d.p.etioI5.
More than so OI.c0> in gold his. since their
creation in IS 10 been paid out fron the tire IS
ury upon the notes given on the purchase I
silver Gy the goyernn mt: and vet the who!c,
amounting to $l5;, 0i.rO) except i little more
than $1,000 800. which have been retired b. eS-
change for 81 yer AZ the request OF the no d.
ers. remains outstanding and prepared TO Jo n
their older and more experienced allies in II =
ture rails upon the treasury god rcserNt.
In oh words. the ~overnr elt has ptld n
gold more than nine-,e.ItIs uf l., UAt Il
tatcs rotcs ard still owes them all IL h;
paid in gold about one-h lif Of its notes give n
for silver pur.h .sas Without extinguishing y
such payment one dollar of these notes When
added TO all this We are rCE1lL Lued that to carry
on this astounding tilancill scheme the gov
ernrncnt has incurred u bonded INDEBTEDNESS
of :9,.aUU,JOJ in establishing Il gold reserve,
,at iNfu II,
it: that an annual interest charge on sucn
bonded Indebtedness is more than Sll.-
,0O0 thIt IL continuance in our present
courS, may result in further bond issues.
and that We have suffered Or are threaten q
with all this for the sake OF supp ying gold Il r
foreign ship nent faci!it;t:n: its noarttlng ut
home Il situation Is eXhib wni h certainly
ought tn arrest attention ani provoke lmrneCl-
ate legislative relief. am convinced the onlv
thcrou=h md pr. ctical remedy for our.troubr
is found in the retirement and cancellation I
oar Unitci States notes. commonly called
greenbacks. a1d the outstanding treasury
notes Issued by the government in p'yment OF
silver purcn iSes under the Il t OF lSol
Ibtlieve tn could be quite readily accom-
pi>hcd b. the exchange of these notes FOR
United states bonds of snail ~ we / as large
demon. nation. bcari le ! low rate of interest.
,iey should be long term bonds thus ilcreas =
ing their dc stability as iuvestE 'nts anu D. =
ccauSe their tyIne.t cou d be well rostp)It d
to period far removed from present TN mel; |
burdens an erp.cXltieS when with INCREASED
prosperity and reS .urccs the: would he mo
easil; met. TO further insure the lrcellatlo |
OF hcse notes and also provide Il way by wh.ch
gold may be added 10 our currency i'll lieu OF
them. Il feature in the plan should ne an &u-
thoritv given to the secretary of the treasury
to d.spo-e OF the bonds abroad for gold If &C.
csSary to complete the contemplated rtdemp-
ton ;n cancellation. Permitting Am TO use
the proce eds o. su II boEds to t ke up and cal =
Gel a2y of the notes that may be IN the Treas
urv or tint may lie received b.. the COVE n
ment anv account. " .
In any event the bonds prono 'ed would
stand for ne extinguisElncnt OF 4 troublesome
irdt btedness. while il the path we now follow
there turks the menace OF urcndlng bonds
with our Indebtedness still und.scAarged ana
aggravated in ever feature The Obligations
necessary to fund this Indebtedness woild not
equal in amount those from which We have
been relieved since 1884 By anticipation and
payment bavond the requirements of the sink
ing fund out OF our surplus rcvenu'i
The currency Withdrawn b. the retirement
cf ii e United States notes and treasury notes.
amounting to probably lnSS than 1856, 0tO U,
might be supplied by such gold would be
used on their retirement. or by an increase IN
the circulation of our National banks ThoI Gh
the aggregate capital of those row il exit
ence amounts TO more than &6c4,0 900. their
outs.iLd ng circu atior based on bo.id Secur-
ity. amounts to only about Sl9o,0t9,UJU. They
are authorized to issue notes amounting TO 81
per cent. of the bonds depositcdto secure ticlr
circulation. but in no event beyOni the amount
OF their capital stock, aud they are Obliged 10
pay one per cent. tax Oh the circulation they
issue.
think they ought to be allowed to iss' @
circulation equal 20 the par va.ue of he bon s
tEev Ceposit to secure it. and that the tax On
their circulation should be rctluccd II one-
fourth one per cent which would Undoubtedly
meet all the expenses the government lncurs
on their i count In addition. they should be
allowed TO substitute CT deposit in lieu of the
bonds now required rs security for tncfr cir
culation those which would be issued for the
purpose of rctiria:. the Uuited safes notes and
treasury notes he banks already existing.
if tney desired 20 avail themselves of the IrC-
visions OF law thus modified. could issue circu-
lation in addition to tnat already outstanding,
amounting to siaS O1,0 D. which woulI near
or quite equal the currency proposed TO lie
cancelled at an; rate 1 should confidently
expect to see the existing national banks or
others to be organized avail themselves. OF the
proposed encouragements to issue circulation
and promptly fill any vacuum and supply every
currency need. 1t mas al Ways seemed to me
that the provisions of law regarding tn, cap
itation 10 their location fails TO mike proper
con- peasation for the suppression Of state
banks hich came near to the pcopl" in all Sec
tions of the count y and readily furnished them
with banking accommoi iatiOnS ana facilities.
ANY Inconvenience or embarrassment al s.
ing from these restrictions Oh tn. location rf
national banks might well b. remcdied By ot =
ter adapting the present sy IN to the ere
tion of banks in $ mailer comnu Iities or b.
pernittln. bd n!iS of lar:e capital TO establish
branches in such localities as would serve lie
pcope so regulated and restrained Us to s. =
cure their .fe and conservative control and
management
If we s-ould be relieved from maintaining
Il gold re-erve under conditions that COZ
stitute it the barometer OF our solvcn y
and II our treasury should no longer be TIE
foolish purveyor of gold for nations abroad I
for speculation and hoarGing by our citizers
at home I should expect II see gold resume It's
II tural AMI normJl functions II the business
affairs of the couItr.; ard cease to b. an Oh
ject attrac ting the timid watch OF our peope
and exciting their sensitive iln~gilitlons.
do not overlook the fact that the cancellation
of the treasury notes issued under the silver
purchasing act of lS9J would leave the treas
ury in tie actual ownership of sufficient silver
including seignior 81, to coin nearly .l'S.UOO.-
coo in standard dollars.
1t is WORTH f consideration whether this
rn;-ht not. from time to tfInt. be converted
into dollars or fraction VI coin and s'owir put
into circulation. in the jud sment OF the Sec
rotary of the treasury the necessities OF the
rourt-v Slould rcuui-n