The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-04

proposed to be cancelled At any rate
I / should confidently expect 10 see the ex-
I listing national banks. or others TO be or
ganiZeu. avail themselves of the pro-
I pcsed encouragements 10 issue circula-
ton, and promptly hll any vacuum and
supply every currency need. u has al
ways seemed to me that the provisions of
law regarding the capital Of national
hdHhS. which operate as umlta ION 20
! their location fails 10 make proper com
EenSattOn Tor the suppression Of state
banks. which came near 10 the people in
al sections Of the country, and readily
furnish them with banking accOmmoda
ions and facilities. Any Inconvenience
or emhafrass 'nent arising from these
restrictions on the location Of national
BANKS might well be Iemedied By better
adopting the present 3stem to The cfea-
lion OF banks In smaller communities or
by permitting banks OF large capital
to establish branches in sucn localities as
would serve the people, TO regulated ana
restrained as 10 secure their safe aud con-
serEatiFe control and management. But
there might not be the necessity for such
an addition TO the currency by new issues
OF bank circulation as al first glance Is in
If We should be relieved from maintain
ing gold reserve under conditions that
constitute ii the barometer of our solvcncy.
and u our treasury should no longer be
the foolish DurVcyOr of gold for nations
abroad or for speculation and boarding by
our citizens at home, / should expect 10
see gold resume its natural and normal
functions in the business affairs of the
country and cease to be an object attract
citing their sensitive imaginations.
! do not overlook the fact that the can
ceiiation OF the treasury notes issued UNI
der the silver purchasing act of 1880 would
leave the treasury in tine actual ownership
of sufficient silver including seieuOrage.
70 coin nearly Sis 0O0,0o0 in standard dol
lars j is worthy Of consideration Whcth-
or this might not from time TO time be
converted into dollars or fractional coin
and slowly put into circulation, a. in the
judgment of the Secretary of the Treas
%
require.
Whatever is attempted should be enter
ed upon fully appreciating the fact that
by careless easy descent we have reached
dangerous depth. and that our ascent
VIII not be accomplished without labor
ious toll and struggle. We shall be wise II
we realize that we are financially i'll ana
our restoration TO health may require he
role treatment. and unpleasant remedies.
In the present stage of our difficulty, IL
is not easy to understand how the amount
of our revenue receipts directly affects it,
The important question is not the quantity
of money received in revenue payments,
but the kind of money we maintain and
our ability TO continue In sound financial
condition We are considering the govern
ments holdings of gold as related to the
soundness of our money and as affecting
our national credit and monetary strength.
If our gold reserve had never been int
paired; If no bonds had ever been issued
to replensh it: If there had been no fear
and timidtty concerning our ability to con-
tinue gold payments; If any part of our
revenues We're now paid in gold and If We
could look upon gold receipts as means
of maintaining a safe reserve, the amount
of our revenues would be an Influential fac
tor in the problem. But, unfortunately, all
their circumstances that lend weight to
this consideration are entirely lacking
In our present predicament no gold -
received by the government in payment
of revenue charges, nor would there be
II the revenues Were increased. The re-
ceipts of the treasury, when not in silver
certificates, consist of United States notes
and treasury notes issued for silver pur-
chaSes. These forms of money are only
useful to the government in paying its
current ordinary expenses, and it's guam
ttty in government possession does not
in the least contribute toward giving us
that kind of safe financial standing or
condition which Is built on gold alone. II
it is said that these notes If held by
the government can be used to obtain
gold for our reserves the answer is easy.
The people draw gold from the treasury
on demand upon United States notes ana
treasury notes. but the proposition that
the treasury can on demand draw gold
from the people upon them would be re-
garded these days with wonder ana
amusement and even IL this could be
done there is nothing TO prevent those
thus parting with their gold from reganing
it the next day or the next hour by the
presentation of the notes they received
in exchange for it.
The Secretary of the Treasury might
use such notes taken from surplus rev.
enue to buy gold in the market. or
ing premium Private holders of gold
unlike the government, having no parity
TO maintain, would moi oe restrained from
making the best bargain possible when
they furnished gold to the treasury, but
the moment the Secretary of the Treasury
bought gold on any terms above par he
would establish general and universal
premium upon il, thus breaking down the
parity between gold and silver which the
government is pledged TO maintain, and
opening the way TO new and serious COM
plications. In the meantime, the prem
ium would not remain stationary and the
absurd spectacle might be presented or
a dealer selling gold to the government,
and with United States notes or treasury
notes in his hand Immediately clamoring
for its return, and a resale at a higher
premium. 1t may be claimed that large
revenue and redundant receipts might
faVOrably affect the situation under dis
cussion by amording an opportunity OF
retaining the notes in the treasury when
received and thus preventing their pres
entation for gold Such retention to be
useful, ought to be at least measureably
permanent; and this Is precisely what is
prohibited, SO far as United States notes
are concerned, by the law of 1873 forbid
ding their further retirement. The statue
in so many words provides that these
notes. when received into the treasury
and belonging TO the United States, shah
ton. ''O ''' ASA" anu Nep' III '''eui'-
It will, moreover, be readily seen that
the government could not refuse to pay
out United States notes and treasury
notes in current transactions when de-
manded and insist on paying out silver
alone and still maintain the parity be-
tween that metal and the currency repre-
senting gold. Besides the accumulation
in the treasury of currency of any kind
eXacted from the people through taxa
ton is justly regarded as an evil, and it
cannot proceed far without vigorous pro-
test against an unjustifiable retention Of
money from the business of the country.
and denunciation as a scheme of tax
alton which proves itself to be unjust
when it takes from the earnings and in
come of the citizen money so much in
excess Of the needs of government sup
port that large sums can be gathered and
kept in the treasury. Such a condition
has heretofore in times of surplus revenue
led the government 10 restore currency to
the people by the purchase
OF its unmatured bonds at
large premium and by large
increase of its deposits in the national
banks, and we easily remember that the
abuse of treasury accommodations has fur
nished a most persuasive argument in
favor Of legislation radically reducing
our tariff taxation.
Perhaps it is supposed that sufficient
revenue receipts would in a sentimental
way improve the situation, by inspiring
confidence in our solVency and allavinp
the fear Of pecuniary exhaustion. and
Yet, though all our struggles to main
tain our gold reserve there never has