The daily morning journal and courier., 1895-12-04

Any inconvenience or embarrassment arising from these restrictions on the location of national banks might well be relieved by better adapting the pres ent system to 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 re- strained as to secure their safe and conservative management. Even if there might be the necessity for such an addition to the currency by new is sues or bank circulation as at a first glance Is indicated if we should be re- lieved from maintaining a gold reserve under conditions that make 1t the bar ometer of our solvency and if our treasr ury should no longer be the foolish pur- Veyor Of gold for nations abroad or for speculation and hoarding by our citi- zens at home, I should expect to see gold resume its natural and normal functions in the business affairs of the country and cease to be an object at | tracing the timid with our people and exciting their sensitive imaginations. do not overlook the fact that the can- cellation of the treasury notes issued under the silver purchasing act of 1890 would leave the treasury in the actual ownership of sufficient silver, including the seigniorage to coin nearly $17S,OO00O0 in standard dollars. It is worthy of considera ton whether this might not, from time to time, be con- verted 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.
 | Whatever is attempted should be en- tered upon fully in appreciation of the fact that by careless, easy descent we reached a dangerous depth, and that our ascent will not be accomplished without laborious toll and struggle. We shall be wise if we realize that we are | financially i'll and that our restoration to health may require heroic treat treatment and unpleasant remedies.
 REVENUE RECEIPTS.
 In the present stage of our difficulty it 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 government S holding of gold as related to the sound ness of our money and as affecting our national credit and monetary strength, If our gold reserve had never been inn paired; if no bonds had ever been is- sued to replenish it; If there had been no fear and timidity concerning our ability to continue gold payments; if | any part of our revenues were now l paid in gold, and if we could look to our gold receipts as means of main taining q safe reserve, the amount of our revenue would be an influential factor in the problem. But unfortu- nately all the circumstances that might lend weight to this consideration are entirely lacking. In our present pre- dicament no gold is received by the government in payment of revenue charges, nor would there be if the reve- nues were increased. The receipts of l the treasury, when not in silver cer- l tificates, consist of United States notes and treasury notes issued for silver purchases. These forms of money are only useful to the government in pay ing it's current ordinary expenses and it's retention in government possession not in the least contribute toward giv- l ing us that kind of safe financial standing or condition which is built on gold alone. If it Is said that these notes if held by the government can be used 1 to obtain gold for our reserve, the an- swer Is easy. The people draw gold from the treasury on demand upon United States notes and treasury notes, but the proposition that the treasury can on demand draw gold from the peo- pie upon them would be regarded in these days with wonder and amuse- ment. And even if this could be done, there is nothing to prevent those thus parting with their gold from regaining | it the next day or the next hour by the presentation of the notes they receiv- ed in exchange for it. The secretary of the treasury might use such notes taken from surplus revenue to buy l gold in the market. Of course he could fnot do this without paying premium | Private holders of gold. unlike the gov | ernment, having no parity to maintain, I 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 a general and uni versal premium upon it, thus breaking
 down the parity between gold and sil- yer which the government is pledged
 to maintain, and opening the way tc I new and serious complications. In the meantime the premium would not re. main stationary and the absurd spec tacle might be presented of a dealer
 selling gold to the government and with | United States notes or treasury notes in his hand immediately clamoring fol | it's return and a resale at a higher premium. II may be claimed that 8 I large revenue and redundant receipts Il might favorably affect the situation un. I der discussion by affording an oppor- tunity of retaining these notes in the I treasury when received, and thus pre-,
 venting their presentation for gold I Such retention to be useful ought to be \ at least measureably permanent: an6
 this is precisely what is prohibited, SC
 far as United States notes are con. cerned, by the law of 1878 forbiddins their further retirement, That statute L AI.-