Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1895-12-07
contract mentioned STAYED for time the lido O,

gold withdrawal Its good results could not be
permanent. Recent Withdrawals have reduced
the reserve from Si07,57i ,230 on the sth day OF
July, 1898, to $40 966 How long 1t will re-
main large, enough to render It's increase un-
necessary is only matter of conjecture though
quite large Withdrawals for shipment in the
immediate future are predicted in well-in-
formed quarters. About Sl6,0 900 900 has been
Withdrawn during the month of November
The foregoing statement OF events and con-
ditions develops the fact that, after increasing
our interest-bearing bonded Indebtedness more
than Sl62,OoO.0O0 TO save our gold reserve we
are nearly where We started, having now In
February 1894, when the first bonds were issued
Though the amount of gold drawn from the
treasury appears to be very large, as gathered
actually was much larger, considerable sums
having been acquired by the treasury within
| bonds.
! am convinced the only thorough and practi-
| cable remedy for our troubles is found in the
retirement ana cancellation OF our United
states notes. commonly called greenbacks, and
the outstanding treasury notes issued by the
government in payment Of silver purchases
| / believe this could be quite readily accom-
plished by the exchange OF these notes for
| United States bonds of small as well as large
| denominations, bearing low rate of interest
| They should be long-term bonds, thus increas-
ing their desirability as investments. and DC.
| period far removed from present financial
| burdens and perplexities. when with increased
prosperity and resources they would be more
10 further insure the cancellation of these
notes, and also provide way by which gold
| may be added to our currency In lieu OF them,
q feature in the plan should be an authority
given to the secretary OF the treasury to dis
pose Of the bonds abroad for gold II necessary
to complete the contemplated redemption and
| cancellation, permitting him to use the pro-
seeds OF such bonds to take up and cancel any
OF the notes that may be in the treasury, or
that may be received by the government on
any account.
The increase Of our bonded debt involved In
| this plan would be amnly concentrated DV
newed activity and enterprise in all business
circles the restored confidence at home, the re-
| instated faith In our monetary strength abroad,
and the stimulation OF every interest and In
dustry that would follow the cancellation Of
| the gold-demand obligations now afliicting us.
In any event the bonds proposed would stand
for the extinguishment OF troublesome in
debtedness, while in the path we now follow
with our Indebtedness still undischarged and
aggravated in every feature. The obligations
necessary to fund this Indebtedness would not
equal in amount those from which we have
been relieved since 1884 by anticipation and
payment, beyond the requirements OF the sink
ing fund out OF our surplus revenues. The cur
rency Withdrawn by the retirement of the
United States notes and treasury notes,
amounting to probably less than S4se 600
might be supplied by such gold as would be
used on their retirement or by an increase in
the circulation of our national banks.
think they should be allowed TO issue circu-
lation equal to the par value OF the bonds they
deposit to secure 1t, and that the tax on their
circulation should be reduced to one-fourth OF
oil the expense the government incurs on their
account. In addition they should be allowed to
substitute or deposit In lieu OF the bonds nov now
| which would be issued for the purpose OF re-
tiring the United States notes and treasury
notes.
1t has always seemed to me that the provi-
sions OF law regarding the capital OF national
banks which operate as limitation 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 well be remeded by
better adapting the present system to the
i creation OF banks in smaller committees or by
branches In such iocaiiiies as would serve the
people, so regulated and restrained as to secure
their safe and conservative controland manage
ment.
do not overlook the fact that the cancella.
> tion of the treasury notes issued under the
silver purchasing act OF 1870 would leave % the
including seigniorage, to coin nearly OoOeOl
= in standard dollars.
1t is worthy OF consideration whether this
might not, from time to time, be converted
into dollars or fractional coin and slowly put
! into circulation as in the judgment OF the Sec
rotary of the treasury the necessities of the
country should require.
4 In the present stage of our dlfnculty it is moi
S easy to understand how the amount of oui
a revenue receipts directly effects it. The i'm.
r portant question is not the quantity of money
: received in revenue payments, but the kind Of
Z money we maintain and our ability to continue
G in sound financial condition. We are consider
= ing the governments holdings of gold as re-
lated to the soundness of our money and a'
, affecting our national credit and monetary
G strength.
I If our gold reserve had never been impaired
: II no bonds had ever been issued TO replenisf
e 1t; there had been no fear and timidity con
. cerning our ability to continue gold payments
could oo to our goS oSi reoep
us means of maintaining safe reserve, tn,
s amount Of our revenues would be an Influential
: factor in the problem. But unfortunately al
Q the circumstances that might lend weight Il
= this consideration are entirely lacking.
In our present predicament no gold is re
n ceived by the government In payment OF reve
@ nue. charges. nor would there be II the revenues
y were increased. The receipts OF the treasury
r when not In silver certificates, consist o
n United States notes and treasury notes ISSUED
b for silver purchases. These forms of money
, are only useful to the government in paying its
current ordinary expenses
S II 1t is said that these notes II held by the
a government can be used to obtain gold for oul
Q reserve the answer is easy. The people draw
t gold from the treasury on demand upon United
, States notes and treasury notes. but the propo
I sition that the treasury can on demand draw
e garded in these days with wonder and anuse-
e ment. And even II this could be done, there Is
nothing to prevent those thus parting Will
a their gold from regaining IL the next day the
: next hour by the presentation OF the notes they
1 received in exchange for it.
d BY the law of 1873 forbidding their further
q retirement that statute in so many words pro
!, vides that these notes when received into tn,
Q treasury and belonging to the United State
q shall be paid out again and kept in circula
y tion." 1t will moreover be readily seen tina
J. the government could not refuse to pay ou
,r United States notes and treasury notes in cur
q rent transactions when demanded and insist o
3 paying out silver alone and still maintain par
W ity between that metal and the currency repre-
r. senting gold. Besides the accumulation 4
the treasury of currency OF any kind exacte
10 from the people through taxation Is justly ne
q garded rs an evil and it oannot proceed ia
" without vigorous protest.
Ia Perhaps 1t is supposed that sufficient revenu
ts receipts would, in o sentimental way, imprOv
n, the situation, by inspiring confidence In ou
Ia solvency and allayinR the fear OF pecuniary eS
In haustion. And yet through all our struggles
l. maintain our gold reserve there never has beo
,c any apprehension as to our ready ability TO pa
IN our way with such money as we had; and th
az question whether or not our current reooipl
to met our current expenses has not entered int
lv the estimate OF our solvenoy. OF course til
general state Of our funds, exclusive OF gol,
r was entirely immaterinl to the foreign oreditC
n and investor. His debt could only be paid
ar gold. and his only concern was our ability
e. keep on hand that kind of money.
IN On July /, 1892. more than year and ha
ne before the first bonds wero issued to replenis