The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1895-12-04


gold witnorawal its good results could not be
permanent. Rscent withdrawals have reduced
the reserve from sl07, ,57b.2l0 on the Stb day Of
July 1885, to S7ss333, ,966. How long 1t Will re-
main ltsrge enough TO render its increase ul-
necessary is only matter af conjecture though
quite large Withdrawals for shipment In the
unmediRte future are predicted in well-in~
Drmed quarters. About S16,000,O00 has been
withdrawn during she montftof November.
The foregoing statement ot events and 2Dn-
dihons develops thes fact thao, after increasing
oun1ntereSt- bearing bonded Indebtedness more
then Sl62OOO.0OO TO save our gold reserve We
are nearly where wo starteal having now ih'
such reserve S9 1888 968 as against SG5 1887 ini
February, 1894, when me first bonds we're issued
Though, the amount of gold dTawn from tho
treasury appears to bs very large, as gathered'
from the facts and figures herein presented it.
actually was much laEEer considerable sums
having been acquired by the treasury within
the several periods stased withoat the issue OF
bonds
am aonvtsced the only thorough and practi-
cable remedy for our troubles is found in the
Ietlrement ard cancellation OF our United
States notes. commonly called gIvenbusks. and
the outstanding treasury notes issued by the
government. in payment, OF silver purchases
under the act of 1890
believes this could bo quite readily accom-
phShed by the exchange OF these noses for
United States bends Of small as WILL aS large
denomlnattons- bearing low rate Of interest
They Sh0uldiDe lOnG-term bonds, tkus' tnsreaS-
ing their desirahihJy Us Investments. and be-
cause their Jaynaent could be well postponed TO
period far removed FROM present financial
burdens and lperT&exitieS, when with1ncEaaSed
FrUspority arlu resources they,woulN be more
easily met
70 further insUre the ctgcellatida OF these
EStes, and also provide way by,whieh gold
may be added to CgIr cuTroncyIin neEl0t th1nl,
n feature iGg the plan should be an authority
given to the ssecrntary Of the treasury to &is-
pose OF the bonds abroad fon gold if necessary
to ocomplete me eGutemplated redemption and
cancellation, permitting hin1 to use the pro
ceeds Of SUCH bonds to take gpand cnecl any
of the notes that may be In the treasury or
that may be leesiYed by the governments on
any account
The increasSof c8Gr bonded'd6bt involved in
this plan would be amply compensated by re-
nexcd activitg and enterprise in all business
c1r2leS, the rG5kored confidence at home, the re-
lnStatcd iaiuh in our monotarg?Sbrengtha abroad,
ana the stimulation of every interest and In
dustry that would follow the cancellation Of
the gold-dsinalB3 obligations Hrpw a4fiictthg US
In any event the bonds proposed would staud
foI7the eStin2lhshnent Of a Troublesome I'LL
dektedneS3 while in the path we now follow
there turks the monaco Of unending' bonds,
with our indebtedness still rldischargsd and
aggravated in svcry feature. The obligations
necessary 10 flEld this indebtedness would not
equnlil aDlOUMt those from which WS nave
been relieved since 1884 by anticipatssn and
payment, beyond the TequirementsSof t4fe sink
ingfund out,oGour surplus revenues, The eur
renGy Withdrawn by the retirement Of the
United States notes and treasury notes,
anr0unting to- probably less tban ASs,O00OOO
might be SuE@lied by such gold Us would be
usedion their gutirement or b9gan increase in
the circulation Of our national tanks.
Ithink they should be allowed TO issue Sfrcn-
'lation equal 10 the par value Otlthe, bones they
deposit TO Secrre 1t. and that the tex 0n their
circulation should be reduced to one-fOarth of
one PEI cent. which would undoubtedly meeb
all. the eNpenSe the government trcurS ca their
account. In 9ddition they shoCld be allOwed to
substitute or deposit in lieu Of. the bonds now
required as security for their circulation those
which would he issued for the purpose of re-
tiring the Uaited States notas, and treasury
notes..
1T has al7Says seemed to n:p'that tlro provi-
StOnS of law regarding the capital OF, national
banks which operate as q l1Aitation to their
location fails to make proper compensation for
the suppression of state banks, which came
near to the people in all sections of the country
and readily furnished them with banking
accommodations and facilities,
any inconvenience or embarrassment arising
from. these restrictions on! the location OF
national banks might welE be remedied by
better adapting the preseEp system to the
creation OF banks in smaller committees or by
peIunittin9 banks OF large capital to establish
branches in such localities as would serve tho
people. so regulated and restrained as to secure
their sufeGnd conservative control and MANAGE
r1sat.
do noA overlook the f2eb that the cancella-
tion Of ahe treasury notes issued under the
stlver-pUTchnsing act Of 1870 would leave tho
tueasury in actual ownershipof sufficient silver,
including Seigniorage to coin nearly Sl7S, ,O0O O00
In standard dollars.
Il is worthy OF constellation Ehether this
zSiyht not, from time to time, be converted
into dollars or fractional coin ard slowly put
into circulation, as in the Judgment Of the sec
setary of the treasury the necessities OF the
country should require.
In the present stage Qf enr difficulty it Is not
easy to understand how the amount OF our
.t..Aa n el., tN
portant 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 consider
ing the governments holdings of gold as re-
lated to the Soundness OF our money and as
affecting our national credit and monetary
strength.
II our gold reserve had never been impaired;
II no bonds had ever been issued to replenish
1t; there had been no fear and timidity con-
cerning our ability to continue gold payments;
| II any part OF our revenues we're not paid In
| gold, and II we could look 30 our gold receipts
| as q means OF maintaining safe reserve, the
| amount OF our revenues would be an influential
| factor in the problem. But unfortunately al
| the circumstances that might lend weight tC
| this consideration are entirely lacking.
In our present predicament no gold Is re-
| ceived by the government In payment of rsTe-
nue. charges, nor would there be IL the revenu,
| we're increased The receipts OF the treasury
| when not in silver certificates, consist Of
| United States notes and treasury notes issued
for silver purchases. These forms of money
| are only useful to the government in paying its
current ordinary expenses,
| If 1t is said that these notes II held by the
| government can be used to obtain geld for our
reserve the answer is easy. The people draw
| gold from the treasury on demand upon United
States notes and treasury notes, but the propo-
| sition that the treasury can on demand draw
gold from the people upon them would be re-
garded in these days with wonder and nuse-
ment. And even If this could be done, there Is
nothing to prevent those thus parting with
their gold from rogaining 1t the next day or the
next hour by the presentation Of the notes they
received in exchange for 1t.
BY the law of 1878 forbidding their further
retirement, that statute in so many words pro
vides that these notes when received into tn,
treasury and belonging to the United State
shall be paid out again and kept IN circula
ton" 1t will moreover be readily seen tina
the government could not refuse to pay Ou
United States notes and treasury notes in cur
rent transactions when demanded and insist o.
paying out silver alone and still maintain par
i 'ity between that metal and the currency repre-
senting gold. Besides the accumulation 1
the treasury of currency Of any kind eXacte
from the people through taxption Is justly re
garded as an evil and 1t cannot proceed fa
without vigorous protest.
Perhaps it is supposed that sufficient revenu
receipts would, in u sentimental way, improy
the situation, by inspiring confidence in ou
solvency and allaying the fear of pecuniary el
haustion. And yet through all our struggles
maintain our gold reserve there never has bee
any apprehension as to our ready ability to pa
our way with such money as we had; and II
question whether or not our current reoeip
met our current expenses has not entered I'M
the estimate Of our solvency. OF course Il
general state Of our funds, exclusive Of gol
was entirely immaterial to the foreign oredltt
and investor. His debt could only be paid
gold, and his only concern was our ability
! keep on hand that kind OF money
: On July /, 1892, more than O year and ha
before the first bonds were issued to repleni!
the gold reserve, there was = net balance in h
treasury, exclusive Of such reserve Of less thl
J S13, ,0OO, 900; but the gold reserve amounted
! more than s1l4, 900 900, which was the quietll
! feature OF the situation. It was when the sto,
OF gold began rapidly to fall that fright supe
vened and our securities held abroad were +
! turned for sale and debts owed abroad we
q pressed for payment. In the meantime 9