The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-10-13


notes in gold to the amount Of $sSs.ooo,ooo:
and that the notes so redeemed are still
outstanding and may be presented for re-
o oump HESITATION 1isn remains nnn Hnsi in sf ins present ss ,T"s con-
dition.
Under such a system Of redemption and
compulsory reissue the difficulty of main
tanning permanently an adequate coin re-
serve would be very great. even II the
Treasury Department were properly organ
lied and equipped for the transaction of a
banking business. but the difficulty is great
" augmented by the fact that the author
ity of the Secretary OF the Treasury Is so
limited by law that he Is not permitted to
resort to any of the means usually adopted
by financial institutions in cases of eTer-
gency. Gold can be procured only by sales
OF bonds or by voluntary exchanges of gold
coin for other forms of currency by the
banks. and IL is scarcely necessary to say
that those voluntary exchanges are most
difficult to make at the very times when
gold is most needed When bonds are sold
In our own market experience has shown
that a large part OF the geld to pay Tor
the first instance. or withdrawn in a snort
time after the bonds have been paid and de-
livered.
UNLIKE A BANK.
"A regular banking institution can easily
provide a proper reserve and can easily re-
plenish it when reduced. because it can stop
discounts or call in its outstanding loans,
IL necessary, or borrow for short periods.
but the Treasury Department can do none
Of these things. 1t was not established. or
organized for any such purposes and is un-
fitted for the discharge of such duties. 1t
ought not to be required to provide. and
cuiating notes, or IL il Is required 10 do
so. the notes ought TO be retired and can
ceied when redeemed; or, in other words,
the debt, when paid, ought TO be eXtin-
guished. The government of the United
States ought not to be engaged in the bust
ness Of issuing notes to circulate as money;
IL &C. NOT n prroar ftn0ffAn of thot onUarn-
ment, and the sooner this truth is realized
by the people the better 1t viii be for the
ment continues to issue circulating notes a
reserve must BE kept and the notes must
be properly redeemed on presenta-
must be Construed as an in
timation even that the reserve ought to be
abandoned or impaired while the present
that the notes ought not to be kept out
standing, but should be retired and can
celed as speedily as the sound and safe
currency can be provided to take their
places. There can be no financial respose
in this country as long as these notes con-
fact that they exist compeis the govern
ment to provide a large gold reserve which,
in the very nature of things, cannot be
AMOUNT; and whenever it begins to dimin-
ish distrust and apprehension arise in the
public mind, values are unsettled, business
is disturbed, and more or less loss is en-
tailed upon the people. The losses al
ready sustained on this account are almost
beyond computation, and there is no good
reason to believe that the country can es-
cape further injury in the future IL the pol
icy OF the government is unchanged In this
respect nsr eS,rrs nne d fae5 .ha or ii suS SOonahe to d el
pend, upon the maintenance OF a certain
fixed reserve in the treasury keeps the bust
ness of the country in an almost constant
and is from every point of view
detrimental to the interests OF the people.
HI -tI - IL tfr~A hfc axranTnO IN u.s.
cuss the various plans that have been
suggested for the retirement and canceila-
ton of the old United States notes ana ine
to assist in directing public attention 10
the subject and to express the decided
opinion that this element of weakness must
be eliminated from our system before we
can have any positive assurance or per
manent safety. After the eXperlenoe o me
that a proposition TO retire these notes
should encounter opposition, though there
Is, of course, room for wide difference OF
opinion as TO the manner in which Ii shall
be accomplished and as to the character or
the currency that shall be, substituted Tor
them. 1t is sometimes said That aithougn
these notes constitute a part OF the pubic
debt they bear no interest and are there
fore the cheapest form of currency maj can
he provided for the use of the people,, but a
very brief statement of the facts. VIII De
sufficient to show how erroneous this con-
is the most expensive form of currency
that the people can have.
WHERE THE LONE GOES.
I'm order TO procure and maintain a fund
for the prompt redemption of the notes on
presentation, 1t has been necessary to issue
Understanding bonds to the amount Of
s257, 9I5, 400. OF these bonds. which were is
sued at various dates, So, 0Oo.0 DOC bore inter-
est at the rate of AZ per cent, $92. 9O5, 400
bear interest at the rate of 4 per cent, and
500, 000.0 600 bear interest at the rate or D
ner cent. The paid and unpaid bonded IN
| debtedness incurred on account of the
United States notes was as follows on the
first day of the present month:
| Interest 73,0O0,0 600
Total ......SsSo,Slo'4 400
| but, in addition to this, the S46, 6Sl 900
of the United States notes are still out
standing, and insult be paid at some time.
so that the total indebtedness, paid and
unpaid. on account of this so-cailed. cheap