The Red Cloud chief., 1895-12-20

uciects III our currency laws, ana the
doubt and uncertainty still prevailing
IN the public mind, and especially
abroad, concerning the future mon.
etary policy of the government. Until
these defects in N laws are rcmcdicd
and these doubts are removed. there
u bc no satisfactory assurance OF
immunity from periodical disturbances
growing out of the obligations which
the government has been compelled to
assume in relation to the currency.
Dur past experience with the United
states notes aud the treasury notes
have clearly shown that the policy
or attempting tn retain these obliga-
tons TO The government permanently
us u part OF our circulating medium
n redeem them in coin OH present.
alton, and reissue them after redcmp-
ton, must be abandoned or that such
means must be- ut once provided ns
will have a tendency to facilitate the
efforts OF the Seer ctary to accumulate
n maintain u coin reserve sufficient
in amount To keep the public constant
ly assured OF the stability OF our entire
volume Of currency and OF u ability
Mt all times to preserve equality In the
cN~changeablc value of it's various
parts.
There has never been q time since
the close of the war when the gradual
retirement and cancellation of the
United states notes would not have
been n benefit to the country, nor has
there ever been a time when the issue
OF additional notes of the same char
acter would not have been injurious to
the country. IL our legal tender notes
were retired there Is abundant reason
Ia hnItnx.a that a. ,.a.. l...
gold which has been excluded from
the country by the excessive use of
silver and paper in circulation would
promptly return to taltc It's place in
our currency and constitute n pcrma-
nent part Of our medium OF exchange.
There Is but one safe and cffectual
way to protect our treasury against
these demands, and that IL to retire
and cancel the notes which constitute
the only means through which the
withdrawals can be made. Many par.
tial and temporary remedies may be
suggested and urged with more or less
plausibility, but this is the only one
that will certainly remove the real
cause OF our troubles, and give assur-
ance OF permanent protection against
thcir recurrence in the future.
SUGGESTIONS ny TuE SECRETARY.
This can be most successfully aud
economically accomplished by author.
izing h secretary of the treasury to
issue from time To time bonds payab lc
in gold, bearing interest ut "a rate not
exceeding three per cent per annum,
and having u loug time to run, and to
exchange the bonds for United States
notes and treasury notes upon such
terms AZ may be most advantageous
to h government or to sell them
abroad for gold whenever In his judy
mcnt IL is advisable tn do so, and use
the gold thus obtained in rcdccming
tho outstanding notes. Under the
operation of such plan. IL
judiciously executed, there could. be
no improper contraction OF the
circulation because il IL should at any
time be found that other forms OF
currency were not being supplied to
the extent required. exchanges Of
bonds for notes would be suspended
and gold would be secured by selling
the securities abroad. In order TO
further facilitate the substitution OF
currency for the retirement of legul
tender notes. the national banks
should be authorized to issue notes
equal In amount to the face value OF
bonds deposited to secure them and
the tax on their circulation should be
reduced to o%ne-fourth Of I per cent
per annum
Tho Secretary also favors the pas
snge OF u law allowing National ba nks
To establish branches in small towns,
with n view TO bringing them closer
to the people in parts .of the country
remote from large towns and cities,
ty which their usefulness would be
greatly enhanced.
The Secretary. in closing his repoN
says that II Is not probable that any
plan for the permanent retirement OF
United States notes and treasury
notes will be adopted that will not re-
quire considerable time for its complete
execution, and he therefore urges up.
on Congress the propricty Of prohibit
ing any further issue OF such notes
or OF National bank notes of less de-
nomination than $40, thus making
room in the cir culation for silver
coins and silver certificates Of small
denominations. This, he says, would
increase their use among the people
and prevent their frequent return to
and accumulation In the TREASURY.