Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1895-12-05


months be restored by another issue and sale
Of bonds, bearing o rate Of interest and badly
suited to their purpose. but that plan must
be adopted for their disposition promising bet
ter results than realized on the previous sales.
An agreement, therefore, was made with
number of financiers and bankers whereby ,
1t was stipulated that bonds de-
scribed in the resumption act of 1877 |
payable In coin thirty years after their date
bearing interest ut the rate OF 4 per cent per .
annum and amounting to about s6!OO),WO ,
should be exchanged gold, receivable by |
weight, amounting to u little more than 49, |!
OO0JO It's good results could not b. perma-
nent. Recent Withdrawals have reduced the I,
reserve from RlO7 81 $50 on the 9th day Of July,
ls0 to $79S3s,98
On the 2sth Of Jlnu Try. 1897, 1t was reported
by the secretary OF the treasury that more
than l7!OOOO0l of the gold h I'd been with
drawn for boarding or shipment during the
year preceding He now rep lrts that from
January !, 1870. to July Il, 1897, perloi OF
more than eleven wears, on u little over SS,-
0OO.OlO was withdrawn and that belw 'en July
Il, ls9, the date OF the pas sage Of the law for
an increased purchase OF silver, and the LIST
day OF December, lS9 or within less than I'VE
ana half years there was wlthirlwn nearly
G3Ti 5000 NJ, making u total OF more than "a
O0J.OOD drawn from the treasury god since
January f. 1870 the nate fixed In 1872 for the
retirement OF the United States notes.
Nearly 4S.700l.010 OF the gold thus withdrawn
has been paid out on the G United States notes,
and yet every one Of the Sl6,OOOOO) is still UNI
cancelel and ready II do service in future
gold deoletols. In other words, the COVERT
ment HIS paid in gold more than uinc-tenths
Of IT, United States notes and still owes them
all 1t has paid In gold about One-hnlf OF It's
notes gvei for silver purchases without eX-
tingushing BIZ such payment Fl OF these notes
And added to all this we are reminded that to
carry out this astounding financial system ire
government has incurred a bonded indeb5ad-
ness of 10 . OlO0I in establishing gold reserve
and of Sl6.3li.4Ol in efforts to maintain It,
am convinced the only thorough and prac-
tcable remedy.for our troubles is found In the
retirement and cancellation OF our United
States notes, commonly called greenbacks and
the outstanding treasury notes issued by the
government in payment OF silver purchased
under the act Of 1897
The currency Withdrawn by tho retirement
OF the United states notes and treasury notes,
amounting to probably less than 8,OOO.OM,
might be supplied by such gold as would be
used on their retirement or by an Increase In
the circulation OF our national banks. Though
the aggregate capital OF these now In existence
amounts to more than i666,OOJ,On. their out
amounts to only about 80 LOOlOn.
think they ought to be allowed to issue cir
cu'ation equal to the pr value Of the bonds
they depOs to secure 1t, and that the tax on
their circulation should be reduced TO 4 OF per
cent. which won d undoubtedly meet I'LL the
expenses the government incurS on their ac-
count. do not over .OOlI the fact that the cam
collation. Of the treasury notes issued under
the silver purchasing act Of 1871 would leave
the treasury In the actual ownership OF sum-
cient silver, including seigniOrage TO coin
nearly $50 l0,OOO in standard dollars 1t Is
worthy OF consideration whether this might
not from time to time, be converted into dol
lars or fractional coin and slowly put into cir
eulatlon
In the present stage OF our din 'IltV 1t Is
not easy to understand how the amount OF our
revenue receipts directly affects It The i'm
portant 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 conditions. We are cOnSld-
| erlng the government holding Of gold as re-
lated to the soundnesS Of our money and as AZ
fecting our national credit and monetary
strength. II our gold reserve had never been
| impaired II no bonds had been issued to re-
| pleniSh: II there had been no fear and
| tlmdity concerning our ability to continue
gold payment; II any part OF our
revenues were now paid In gold;
| md II we could look to our gold receipts as a
Iimenns Of maintaining safe reserve, the
4 amount Of our revenues would be an intuen-
tIal factor in the problem But unfortunately
| all the circumstance that might lend weight
| to this consideration are entirely lacking. In
| our present predicament no gold Is received by
| the government In payment Of revenue charges
| nor would there be II the revenues we're Inc
| creased. The receipts OF the treasury when
not in silver certificates consist OF United
| States notes and treasury notes, issued for sill
/ yer purchases. These forms Of money are only
useful to the government In paying It's cur
rent ordinary expenses and lis quantity
in government possession res not IN the
least contribute toward giving Us the kind OF
safe financial standing or condition which Is
/ built on I'D alone. II It Is said that these
notes II held by the government can be used
| to obtain gold for our reserve, the answer Is
| easy The people draw gold from the treas
ury on demand upon United States notes, but
| the proposition that the treasury can on de-
mand draw gold from th3 people upon them
! woul be regarded In these days with wonder
and amusement. And even II this could be
done. there Is nothing to prevent those thus
rarting with their gold from regaining it by
the next day or the next hour by the pres 9nta-
| ton OF the notes theyreceivedn exchange for II.
The scretary OF the treasury might use such
notes taken from surplus revenue to buy
| gold In the market OF course he could not do
| this without paying premium. Private hold
| ers Of gold. unlike the government, having no
parity to maintain, would not be restrained
| from making the best bargain possible when
| they furnished gold to the treasury. but the
moment the secretary Of the treasury bought
| gold on any terms above par he would estab-
fish general and universal premium upon 1t
! thus breaking down the parity between gold
ana silver which the government Is
pledged to maintain, and opening the
way to new and serious complications
In the meantime the premium would not re-
main stationary ana the absurd spectacle
might be presented Of an alien selling gold to
the government, and with United States notes
| in his hands Immediately clamoring for its re-
| turn and u resale at higher premium. II
may be claimed that ! rye revenue and re-
| duced receipts might favorably affect the stu
alton under discussion by affording an oppor-
tunity affecting these notes in the treasury
when received, and thus preventing their pre-
sentation for gold.
Such retention OF the metal ought to be at
least measurably permanent, and this is pre-.
cisely what is prohibited so far as United
| States notes are concerned
BY the law OF 1873. forblddlng their future
retirement, that statute in so many words
provides that these notes when received into
the treasury and belonging to the United
| States shall be paid out again and kept In
| circulation" Il will moreover be readily seen
| that the government could not refuse to pay
out United States notes and treasury notes in
J current transactions when dem Indel and in
/ n~fn gflV