The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-10-17
BONDS, THE REMEDY.
Edward Atkinson Talks to
Bankers at Atlanta.
Gives Panaceas for Our Present
Financial Ills.
GET DEEPER IN DEBT.
He Has Two Remedies and Both
Involve More Bonds.
GET DEEPER IN DEBT.
Increase Gold Reserve, orzHave
Bankers Buy Bonds.

address before the Bankers association
here today was made by Edward Atkin-
son of Boston. His subject was 'Prac-
teal Suggestions for a Reform of the
Monetary System"
Mr.. Atkinson in his speech said that
the suggestion of a general kind for the
appointment of a committee or commits
siO1 to cooperate with the executive de-
partment of the government may be
rightly supplemented by some further
prac ical suggestions for attaining the
purpose aimed at.
II need not say" he continued, "that
unless some way is found under existing
laws for the withdrawal by the govern
ment of whatever excess of legal tender
notes there are now in enforced circula-
tion, and unless congress shall enact
laws to that end, if present laws will not
permit the secretary TO act, all our efforts
to reform our monetary system will fail.
"We must first consider the question
OF what is an adequate supply of full
legal tender money" said he. ''The
lawful money which is of full legal ten
der in this country now consists of four
kinds:
"First-Of gold coin.
second. of silver dollars of full legal
tender represented in circulation by
silver certificates which are not them
selves legal tender.
''Third-The legal tender notes which
were issued for the collection of forced
loan during the conduct of the war in
1862 and 1868.
"Fourth-The legal tender treasury
notes which were issued under the act of
1890 for the collection of forced loan
for purchasing additional silver bullion.
"Ihe fact can not be too urgently or
too often stated that the reason why the
credit of the government notes has been
impaired, and the reason why the
debt bearing interest has lately been
increased $163,UOO,000, and may
soon be increased 500, 100000 more,
is because the government has
incurred a debt due on demand, by means
ct i forced loan, TO the amount of $780,
COO,000 for the purchase of silver bullion
under the Bland and Sherman acts.
"The mine owners and bullion dealers
have put the silver upon the government
which was forced TO buy it under the
Bland and Sherman ects. The govern
ment has paid for the silver bv increas-
ing its demand debt $500, 600
in legal tender notes. The silver miners
and bullion dealers have been ena bled to
force these notes into circulation under
the legal tender provisions.
"Ihe mine owners and bullion dealers
have secured their profits, and the com
munity must pay the debt and interest
and meet the loss by way of taxation.
The Bland and Sherman acts have cost
us $50O,000O O0O less the value of the
bullion in the treasury and in the dollars
coined.
There are now but two wavs out of
these eyiI'conditions. First, the govern
ment might sell interest bearing bonds to
such an extent for gold as to increase
the gold reserve up to the point where
the confidence of the community In abso-
solute redemption in gold coin will be
revived; but no living man can deter
mine what that reserve of gold must be-
Second, the true way out is a simple
and ready one. The treasury may pro
vide itself with gold by the sale of bonds
so as TO enable it in cooperation with the
national banks to meet any possible de-
mand of the people for the redemption
of the government notes as fast as they
are presented. In that event, if the vol
ume of paper money is redundant it will
be reduced by redemption; if it is not
redundant it will Continue in circula-
tom
Speaking of the amount of silver in
the treasury, Mr.. Atkinson said: "W hat
then, shall the secretary do with this sill
yer? What will congress do with it?
" no can tell. 1u0 way IN WDlC0 the
banks may now cooperate with the
treasury so as to instantly re-
move all cause of distrust and
discredit would be for a combination
of the national and state banks to offer to
purchase such amount of the 4 per cent
80 year bonds as would suffice to with
draw all the treasury notes of 1890, which
are now in circulation. Less than 500
100000 of bonds would be required tp
cover in all the outstanding notes of
1890.
81 hold that it is not only the privilege
but the duty of the national banks to
place all their gold at the command of
the treasury. If the banks cannot trust
the treasury, what is their own credit
WORTH"
Mr.. Atkinson closed by expressing the
hope that d committee representing this
association will be appointed to cooper
ate with the government by which COM
mittee the several propositions made
should be carefully considered.