The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1895-12-07

stand for the extinguishment Of trouble
some Indebtedness. While in the case we
now follow-the menace of unending
bonds, without Indebtedness till I'M
discharged and aggravated in every feat
ure-the obligations necessary TO 1und
this Indebtedness would not equal IN
amount those from which we have been
relieved since 1884 by anticipation ana
payment, by the requirements of the SINK
ing fund of our surplus revenues, the
currency Withdrawn by the retirement OF
the United States notes and treasury
notes. amounting to probably less than
Si66, 100000, might be supplied by such
gold as would be used on their retirement
or by an increase in the circulation of
our national banks.
TAKE OFF THE TAX.
Though the aggregate capital Of those
now in existence amounts to more tnah
1864. 1000. their outstanding circulation,
based on bond security, amounts to only
about $4,000, 0OO and they are author
lied to issue notes amounting to ninety
per cent of the bonds deposited to secure
their circulation, but in no event beyond
the amount Of their capital stock.and they
are obliged TO pay one per cent tax on
their circulation they issue.
l think they should be allowed to issue
bonds they deposit to secure it, and that
the tax on their circulation should be re-
duced to one-fourth of l per cent, which
would undoubtedly meet all the expense
the government incurs on their account.
In addition they should be allowed to sub
stitute or deposit in lieu of the bonds now
required as security for their circulation
those which would be issued for the pur-
pose of retiring the United States notes
and treasury notes.
The banks already existing, if they de-
sired to avail themselves of the provisions
of the law thus modified, could issue cir
culation in addition to that already out
standing amounting to Si7S,O1J,OOO which
would nearly or quite equal the currency
proposed TO be Cancelled. At any event.
l should confidently expect to see the ex-
isting national banks or others to be or
gained avail themselves of the proposed
announcements to issue circulation and
promptly fill any vacuum and supply
every currency need.
1t has always seemed to me that the
provisions of the law regarding the cap
ital of national banks, which operate as
q limitation to their location, fail 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 ac
venience or embarrassment arising from
those restrictions on the location Of ma
tional banks might well be remedied by
better adapting the present system to the
creating of banks in similar communities
or by permitting banks of large capital
to establishes branches in such localities
as would serve the people, so regulated
and restrained to secure their safe and
conservative control and management,
,frrI.F f1ra cit for
such an addition to the currency by new
issues of bank circulation as at first
glance is indicated. If we should be re-
lieved from maintaining a gold reserve
under conditions that constitute it the
barometer of our sOlvency, and if our
treasury should no longer be the foolish
purVeyOr of gold from nations abroad or
for speculation and boarding by our cit
liens at home, l should expect to see
gold resume its natural and normal func-
tons in the business affairs of the coun-
try, and cease to be an object attracting
the timid of our people and exciting their
sensitive imaginatiOns.
EVEN TO COIN SILVER.
do not overlook the fact that the can
collation. of the treasury notes issued I'M
der the silver purchasing act of 1890 would
leave the treasury in the actual owner
ship of sufficient silver, including seig-
niorage, to coin nearly S17S, 100000 in stand
ard dollars. 1t is worthy of consideration
whether this might not, from time to
time. be converted into dollars or frac-
tional coin and slowly put into circu-
lation as in the judgment OF tie secre-
tary of the treasury the necessi - of the
country should require.
Whatever is attempted should be en-
tered upon fully approaching the fact that
by careless and easy descent we have
reached a dangerous depth anP--hat our
ascent will not be accomplished without
laborious struggle. We shall be wise if
We realize that we are financially i'll and
that our restoration to health may require
heroic treatment and unpleasant rene
dies In the present stage of our difficult
tV il 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 rev.
enue payments, but the kind of money we
maintain and our ability to continue
sound financial conditions. We are con-
sidering the governments holdings of gold
as related to the soundness of our money
and as affecting our national credit and
monetary strength. If our gold reserve
had never been impaired or if no bonds
had ever been issued to replenish it, if
there had been no fear and timidity con-
corning ability to continue gold payment if
anv part of our revenues were not paid in
cold and if we could look to our gold re-
CENTS as a means of maintaining a safe
reserve. the amount of our revenues would
he an influential factor in the problem,
but unfortunately the circumstances
which might lend weight to this consid-
Grafton are entirely lacking in our pres
ent predicament. No gold is received by
the Government in payment for revenue
charges, nor would there be if the rev.
enues were increased. The receipts of the
treasury. when not in silver certificates,
consist of United States notes and treas
urv notes issued for silver purchases.
These forms of money are only useful to
the government in paying its current
ordinary expenses and its quantity in gov
eminent possession does not in the least
contribute toward giving us that kind of
safe financial standing or condition which
is built on gold alone.
THEORIES AND ARGUMENT.
If it is said that those notes if held by
the government can be used to obtain gold
for our reserve, the answer is easy. The
people draw gold from the treasury on
demand upon United States and treasury
notes, but the proposition that the treas
ury can on demand draw gold from the
people upon them would be regarded in
these days with wonder and amusement
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 next hour by the presentation Of
notes they received in exchange for it,
The secretary of the treasury might use
such notes taken from a surplus of rev
enue to buy gold in the market OF course
he could not do this without paying a