Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-04
THE MESSAGE.
[ Continued from page 2.

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eco, might be supplied by such gold AS
would be used ON their retirement or BY
an increase in the circulation of our ma
tional banks. Though the aggregate
capital of those now in existence amounts
to more than 1854, 900. 600, their outstaud
ing circulation based on bond security.
amounts to only about $3.50, 900, 90. They
are authorized to issue notes amounting to
90 per cent. of the bonds deposited to
secure their circulation, but in no event be
yond the amount Of their capital stock,
and they are obliged TO pay l per cent. tax
on the circulation they issue. think they
should be allowed TO issue circulation
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 ! per cent. which would un-
doubtedly meet all the expense the gov
ernment incurs on their account. In add
ton they should be allowed to substitute
or deposit in lieu of the bonds nov re
quired as security for their circulation
those which would be issued for the pur
pose OF retiring the United States not-s
and treasury notes The banks already
existing If they desired to avail them
selves of the provisions of law thus modi-
fled, could issue circulation in addition to
that already outstanding, amounting to
SITS 900, 000, which would nearly or quite
equal the currency proposed to he can
celled. At any rate, | should confidently
expect to see the existing national banks
or Others to be organized avail themselves
OF the proposed encouragements to issue
circulation and promptly fill any vacuum
7 "a
always seemed to me that the provisions
Of law regarding the capital of national
banks which operate rs a limitation to
their location fails to make proper com
pensation for the suppression of state
banks. which came near to the people In
all sections Of the country and readily
furnished them with banking accommoda
tions and facilities. Any inconvenience
or embarrassment arising from these re
strictions on the location of national
banks might well be remedied by better
adapting the present system to the crea
ton 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
restrained as to secure their safe and con-
Servative control and management. But
there might not be the necessity for such
an addition to the currency by new issues
of bank circulation as at first glance is in
dictated If we should be relieved from
maintaining a gold reserve under condi-
tions that constitute it the barometer of
our solyency, and if our treasury should no
longer be the foolish purveyor of gold for
nations abroad or for speculation and
boarding by our citizens at home, l 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 watch of our people and
exciting their sensitive imaginations. l
do not overlook the fact that the cancella
ton Of the treasury notes issued under the
silver purchasing act of 1890, would leave
the treasury in the actual ownership of
sufficient silver including scignorage, to
coin nearly $17o, 000 600 in standard dol
lars. 1t is worthy of consideration whether
this might not from time to time be con
vertcd into dollars or fractional coin and
slowly put into circulation, as in the judg
ment of the secretary of the treasury the
necessities OF the country should require
Whatever is attempted should be entered
upon fully approaching the fact that by
careless, easy descent we have reached a
dangerous depth and that our ascent will
not be ACCOMPLISHED without laborious
toll and struggle We shall he wise if
sc realize that we are financially i'll and
that our restoration to health may require
heroic treatment and unpleasant remedies.
Attempt to Excuse the Deficit.
In the present stage of our difficulty il
is not easy to understand how the amount
Of our revenue receipts directly affect 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 gov
ernment's holdings Of gold rs related TIC
the soundness of our money and as affect
ing our national credit and monetary
strength.
If orr gold reese, We had never been i'm
haired; if no bonds had ever been issued
to rcplenish it; if there had been no fear
and tmidity concerning our ability to con
tinue gold payments; if any part of our
revenues were now paid in gold, and if
we could look to our gold receipts as II
means of maintaining a safe reserve, the
amount of our revenues would be an in
nuential factor In the problem. But IN
fortunately, all the circumstances that
might lend weight to this consideration
are entirely lacking. In our present pre-
dicament no gold is received by the gov
erpment in payment of revenue charges,
nor would there he if the revenues were
increased. The receipts of the treasury.
when not in silver certificates. consist of
United States notes and treasury notes
issued for silver purchases. These forms
of II oney are only useful to the govern
ment in paying its current ordinary ex
penses and its quantity in the government
possession does not in the least contribute
toward giving 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 to obtain gold for our reserve, the
answer is easy. The people draw gold
from the treasury on demand upon United
safes notes and treasury notes, but the
proposition that the treasury can on de
mand draw gold from the people upon
them. would be regarded in these DAYS
with wonder ana amusement. And eve u
If this could be done, there is nothing to
prevent those parting With gold from re
ginning 1t the next day or the next hour
4. ta+ cf thn TINY 70