The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-12-17

confidence and prosperity is seriousl.
impeded by the defects in our currenc.
laws and the doubt and uncertaint.
still prevailing in the public mind ans
especially abroad. concerning the fu
ture monetary policy of the govern
ment. Our past experience with th'
United States notes and the treasur,
notes has clearly shown that the polio,
of attempting to retain these obliga-
tions of the government permanently
as a part of the circulating medium
and to redeem them in coin on presen-
tation and reissue them after redemp-
ton must be abandoned. or that such
means must be at once provided as
will have a tendency to facilitate the
efforts of the secretary to accumulate
and maintain a coin reserve sufficient
in amount to keep the public constant
ly assured of the stability of our en-
tire volume of currency and Of our
ability at all times to preserve equality
in the exchangeable value of its vari-
Gus parts. The latter alternative,
which. in my opinion. IL adopted. would
not afford the relief demanded by the
existing situation. necessary involves
such large increases of the interest
bearing public debt from time to time.
and would impose permanently upon
the government such erroneous and in
apprapriate duties in relation to the
paper currency OF the country. that IL
ought not to be favorably entertained
except as a last resort in the struggle
for the maintenance OF public faith
and the reservation of private con-
tracts.
The issue of bonds" he said, "to
procure coin for the reserve, which is
the only effectual method now avail
able under the law, will, unless con-
ditions which have already been de-
veloped by the present policy are radi-
cally changed. ultimately result I'm the
creation of a public debt much larger
than would be required to retire and
cancel the notes: and the annual in
terest charge would be much greater
than 1t would be necessary to incur on
new issue of bonds adapted to the
present circumstances OF the govern
ment and the well-known preferences
of investors. If. however. an attempt
is to be made to keep the United
States notes and treasury notes per-
manetly in circulation by reissues af-
is to be permanently charged with the
duty of sustaining the value of our
currency. paper and coin alike, the
cannot be avoided that the
policy of issuing bonds for the ac-
of these purposes must
also become permanent and such adj
ditional powers must be conferred
upon the secretary as will enable him
to execute the laws relating to these
subjects with the least possible dis
turbances of business affairs.
II am thoroughly convinced this poll
cy ought not to be continued. but that
the United States notes and treasury
rotes should be retired from circulation
at the earliest practicable day. and
that the government should be wholly
relieved from the responsibility of pro-
viding a credit currency for the people.
II would be difficult to devise a more
expensive or dangerous
system than the one now in operation
under the laws providing for the issue.
and reissue of legal tender
notes by the government.
Long adherence to false system
mas, to a great extent, undermined our
national credit. so far as 1t is related
10 the maintenance of a sound curren-
~, and II must be reconstructed, not
merely propped up by .frail and tenn
)orary supports. No surplus revenue,
however large. could extricate us from
,ur present difficulties or give assur-
lnce of safety in the future unless IL
should be required to be paid in gold.
inder a system which would exempt
he government from the obligations
% furnish the gold when demanded to
De used in making the payments; and
{ is scarcely necessary to suggest that
'uch a system is impossible as long as
he United States notes and treasury
notes are kept in circulation and are
in gold by the government |
m presentation.
There is but one safe and effectual
vay," the secretary says, Ito protect |
,ur treasury against these demands, |
md that is to retire and cancel the |
totes which constitute the only means |
through which the withdrawal can be |
made. This can be most successfully |
md economically accomplished by au-
the secretary of the treasury |
o issue from time to time bonds pay |
bile in gold. bearing interest at a rate |
lot exceeding 3 per cent. per annum |
nd having a long time TO run. and 10 |
the bonds for United States |
Iotes and treasury notes upon such |
erms as may be most advantageous to |
he government. or sell them abroad for /
old whenever. in his judgment, IL is
dvisable to do so, and to use the gold /
hus obtained in redeeming the out
notes"
The secretary favors the passage of /
law allowing national banks 20 es-
ablish branches in small towns. with
view to bringing them closer TO the
eople in parts OF the country remote
rom cities. by which their usefulness
fould be greatly enhanced. The sec
etary. In closing his report, says that
is not probable that any plan for the
retirement OF United States
otes and treasury notes will be adopt
d that will not require considerable
me for it's complete execution. and he
herefore urges upon congress the pro-
riety of prohibiting any further issue
( such notes or of national bank notes