The morning times., 1895-12-04

tiring the United States notes and Treasury
notes.
sired to avail themselves OF tue PROVISIONS
of law thus modified, could issue clrcn-
latiou in addition TO that already outstand-
ing, amounting TO $4aS,Vvo;SSoo. So cnrT.,,cp Mn,c9
proposed to be Cancelled. AT any rate
should confidently expect to see the ex-
gauized avail themselves OF tie proposed
Encouragement to issue circulation and
promptly fill any vacuum and supply every
currency need.
1t has alway Us seemed to me that the pro-
visions of law regarding the capital OF ma
tional banks, whicn operate as u limitation
TO their location, fails To make proper com
pensation for the suppression of State banks.
which came near to the people III al SECTIONS
OF the country, and readily furnished them
with banking accomnodationsand facllltIes
Any Inconvenience or embarrassment aris-
ing from these restrictions on the location
OF national banks might well be reinedleo
by better adapting the present system 10 the
creation OF banks in smaller communities.
or by permitting banks of large capital to
establish branches in such localities as
would serve the people-so regulated and
restrained as to secure their sale ana con-
servative cont rol and mana cement.
But there might not be tue necessity Tor
such an addition to the currency by new
issues of bank circulation as at first glance
is indicated. II we should be relieved from
maintaining gold reserve under such con-
ditious that constitute it the barometer of
our solyeucy, and If our Trea sury should no
longer be the foolish purveyor OF gold for
nations abroad or for specula ton and hoard
ing by our citizens at home, / should ex-
pect to see gold resume its natural and nor
NAL functions in the business affairs OF the
country, and cease to bc an object attract
ing the timid watch of our people and ex-
citing their sensitive imaginations.
CONVERTEDINTo DOLLARS.
{ do not overlook the fact that the can
collation. Of the Treasury notes issued under
the silver purchasing act of 1880 would
leave the Treasury in the actual ownership
of sufficient silver, including seigniorage.
TO coin nearly $l7S,0OO,OOU in standard
dollars. II is worthy OF consideration
whether this might not, from time to time
be converted into dollars or fractional coin
and slowly put into circulation, as IN the
Judgment of the Secretary OF the Treasury
the necessities of the country should require.
p Whatever is attempted should be entered
upon fully approaching the fact that by
careless, easy des cent we have reached
dangerous depth, and that our ascent
will not be accomplished without ldborlous
toll and struggle. We shall be wise if we
realize that we are financially i'll and
that our restoration to health may re-
Uilte heroic treatment aud unpIea saul REM
edies.
In the present stage Of our difficulty 1t
is not easy 10 understand how the amount
OF our revenue receipts directly affects IL.
The important question is not the guam
tity OF money received in revenue pay
meDts, but the kind of money we maintain
and our ability TO continue IN sound rlnan-
cial condition. We are considering the
governments holdings of gold as related
to the soundness OF our money and as af-
fectiDg our national credit and monetary
strength.
II our gold reserve had never been i'm
paired; If no bonds had ever been issued
to replenish II; If there had been no fear
and timidity concerning our ability to
continue gold payments: If any part of
our revenues were now paid in gold, and
if we could look TO our gold receipts as
q means of maintaining safe reserve,
the amount Of our revenues would be an
imtiuenLlai Iac,9f ~ u me Lrmnieni: bu' ~. -,
might lend weight to this consideration are
entirely lacking.
In our present predicament no gold is
received by the government in payment OF
revenue charges, nor would there be If the
revenues were increased. The receipts Of
the Treasury, when not in silver certifi-
Gates, consist OF United States notes and
Treasury notes iss ued for silver purchases.
These forms of money are only useful TO
the government in paying its current ordi-
nary expenses, and its quantity in gov
ernment possess ion does not in the least
of safe financial standing or condition
which is built on gold alone
THE ANSWER Is EASY.
Ifft is said that these notes If held by the
government can be used TO obla ain gold for
our reserve, the answer is easy. The people
draw gold from the Treasury on deman nd
upon United States notes and Treasury notes,
but the proposition that the Treasury cano
demand draw gold from the people upon
them would be regarded i'll these days with
wonder and amusement. And even II this
could be done there is nothing 10 prevent
thost, thus parting with their gold from re-
gaining it the next day or the next hour by
the presentation OF tue notes they receivedI in
exchange for It,
The Secretary of the Treasury might use
such notes taken from surplus revenue 10
buy gold in the market. Of course becould
not do this without paying premium. Fri
yate holders of gold, unlike the government,
having no parity TO maintain, would not be
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 md
universal premium upon 1t. thus breaking
down the parity between gold and silver
which the government is pledged to main
tain. and opening the way 10 new and serious
computations. In the meauIlfne the pre-
MUM wonld not remain stationary, and the
absurd spectacle might be presented or a
dealer selling gold 10 the government. and
with United States notes or Treasury notes
In his hand Immediately clalnoring for its
return and resale at u higher premium.
Itmay be claimed that a large revenue and
redundant receipts might favorably affect
thesituation after discussion by affording an
Opportunity of retaining these notes III the
Treasury when received. and thus prevent
ing their presentation for gold. Such re-
tention, To be useful, ought TO be at least
measurably permanent, and this Is pre-
cisely what is prohibited. So far as United
States notes are concerned, by the law OF
1878 forbidding their further retirement.
That statute in SO many words provides
that these notes. when received into the
Treasury and belonging to the United states
shall be paid out again and kept in circu-
lation."
REGARDED AS AN EVIL.
1t will, moreover, be readily seen that
the government could not refuse to pay out
United States notes and Treasury notes in
current transactions when demanded and
Insist on paying out silver alone and still
maintain the parity between that metal and
the currency representing gold Besides:
currency of any kind exacted from the
people through taxation is justly regarded
as an evil, and 1t cannot proceed far with
out vigorous protest against an unjustlll-
abel retention of money from the business
OF the country and a denunciation OF
scheme of taxation which proves itself to
be unjust when ii takes FROM the earnings
and income ur the citizen money so much
IN excess of the needs uf 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 tu restore currency TO the
people by the purchase of its unmatured
bonds at large premium and by a large
Increase of Its depusits in national banks.
and We easily remember that the abuse of
Treasury accumulation has furnished a nlust
persuasive argument In favor uf legislation
-adically reducing our tariff taxation.
Perhaps IL Is supposed that sufficient rev.
enue receipts would IN sentimental way
improve the situation, by inspiring conf
dence in our solvency, and allaying the fear
or pecuniary exhaustion. And yet through
all our struggles to maintain our gold re-
serve there never has been nanyapprehens sion
as to our ready ability TO pay our way with
such money as we had; and the question
whether or not our current receipts met our
current expenses has not entered into the
estimate or our solvency. or course, the
general state of our funds, exclusive of
gold, was entirely immaterial to the foreign
be paid IN gold, andhis only concern was our
eblilty TO Keep on hand that kind of money.