Red Lodge picket. [volume] (Red Lodge, Mont.) 1889-1907, 1895-12-21

the reserve, which is the only eHectual
method now available under the law, Will
unless conditions which have already pet'h
developed by the present policy are fad-
ically changed, ultimately result IN the
creation Of public debt much larger
than would be required to retire and can
eel the notes. and the annual interest,"
charge would be much greater than II
would be necessary to incur on a ne"
issue Of bonds adapted to the present
circumstances of the government ana inc
well-knoWn preferences OF investors. -
however an attempt is to be maze 70
keep the United States notes and treasury
notes permanently in circulation by RES
sues after redemption and the govern
ment is to be permanently charged with
the duty of sustaining the value OF cur
rency, paper and coin alike, the conclusion
can not be avoided that the policy Of is
suing bonds for the accomplishment OF
these purposes must also become perma-
nent, and such additional powers must
be conferred upon the secretary as VIII
enable him to execute the laws relating TO
these subjects with the least possible dis
turbance of the business affairs.
l am thoroughly convinced this policy
ought not to be continued, but that the
United States notes and treasury notes
should be retired from circulation at the
earliest practicable day. and that the
government should be wholly relieved
from the responsibility Of providing
credit currency for the people. 1t would
be difficult to devise a more inconVenient,
expensive dangerous system than the
one now in operation under the law pro
vidlng for the issue, redemption and re
issue of legal tender notes by the govern
ment.
If our legal tender notes were retired
there is abundant reason to believe that
a large amount Of gold which has been
excluded from the country by the excess
sive use of silver and paper in our circu-
lation would promptly return to take its
place in our currency and constitute
permanent part Of our medium Of ex-
change Retirement and cancellation OF
legal tender notes would not necessarily
produce any contraction Of the clrcuia-
ton for whenever the volume is reduced
below the actual requirements of trade
the deficiency will be supplied from abroad
N exchange for our products and securl-
ties, or by the banks at home, or both.
The United States notes and treasury
notes issued in payment fer silver bullion.
together amounting at the beginning to
1902 612, ,O18. have been used and are still
being used to withdraw gold from the
government whenever our own people or
people of our other countries see proper
to demand it for any purpose, and, under
the laws now existing, the secretary OF
the treasury has no means Of complying
with these demands, except by the issue
and sale Of interest-bearinS bonds under
the act of January IA, 1875 or by the pur-
chase Of gold coin with bonds or notes OF
the United States under section 3700 Of the
cto tIItp these
the treasury has no available means OF
defense, except of the sacrifice OF the
public credit and the immediate deprecla-
ton Of the entire volume OF our currency
Long obedience to a false system has to
a great extent undermined our national
credit. SO far as II is related to the main
tenance Of a sound currency, and it must
be reconstruct ted-not merely propped up
by frail and temporary supports NO
surplus revenue, however large, could eX-
tricate us from our present difficulties or
give assurance of safety in the future un-
less 1t should be required to be paid in
gold under a system which would exempt
the government from obligations to fur
njsh the gold when demanded, to be used
in making the payments, and it is scarce
ly necessary to suggest that Such sys-
TEN is impossible as long the United
States notes and treasury notes are kept
s'it
tv the government on presentation.
There is but one safe and effectual way
TO protect our treasury against these de-
mands and that is to retire and cancel
the notes which constitute the only means
through which the withdrawal can be
made.
This can be most successfully and eco
nomicaly accomplished by authorizing
the secretary Of the treasury to issue from
time to time bonds payable in gold, bear
ing interest at a rate not exceeding 3 per
cent per annUm and having a long time
to rum and to exchange the bonds for
United States notes upon such terms as
may be most advantageous to the gov
ernrnent or sell them abroad for goid
whenever in the secretary Of the treas
urv's judgment it is advisable to DO so
and to use the gold thus obtained in re-
deeming the outstanding notes.
The secretary fayors the passage Of
law allowing national banks to estab-
| lish branches il small towns with a view
TO bringing them closer 70 the people in
! parts Of the country remote from cities,
| bv which their usefulness would be
| greatly enhanced.
The secretary, in closing his report,
| United States and treasury notes will
| saws that it is not proDa Die that any
| plan for the permanent retirement 2f
be adopted that will not require consid-
| erable time for it's complete execution,
and he therefore urges upon congress
! the propriety Of prohibiting any further
issues of such notes or Of national banks
of less denominations than $40, thus
making room in the circula ton for sill
Yer coins and silver certificates of small
| denominations. This, he says, would in
| crease their use among the people and
prevent their frequent return to and ac-
| c,,nlIlat ton in the treasury.