Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1895-12-21

produce any contraction OF the circula-
ton, for whenever the volume Is reduced
below the actual requirements or trade
the deficiency will be supplied from abroad
in exchange for our products and securi-
ties, or by the banks at home. or both.
The United States notes and treasury
notes issued In payment for silver bullion,
together amounting at the beginning to
$500, 612 01S, have been used and are still
being used to withdraw gold from the
government whenever our own people or
people of our other countries see proper
to demand it for any purpose and, under
the laws now existing, the secretary OF
the treasury has no means Of complying
with these demands, except by the issue
and sale Of interest-bearing bonds under
the act of January IA, 1875, or by the puT-
chase of gold coin with bonds or notes or
the United States under section 800 Of the
revised statutes. Against these demands
the treasury has no available means of
defense, except of the sacrifice Of the
public credit and the immediate deprecla-
ton Of the entire volume of our currency
Long obedience to false system has to
a. great extent undermined our national
credit, so far as it is related to the main
tenance Of a sound currency, and 1t must
be reconstructed-not merely propped UP
by frail and temporary supports. No
tricate us from our present difficulties or
give assurance of safety in the future un-
less it should be required to be paid in
gold under system which would exempt
the government from obligations to fur-
nish the gold when demanded, to be used
in making the payments, and 1t is scarce
ly necessary to suggest that such SyS-
tenn is impossible as long as the United
States notes and treasury notes are kept
i,Do 11otf and rn HnaT a
by the government on presentation.
There is but one safe and effectual way
to protect our treasury against these de-
mands, and that is to retire and cancel
the notes which constitute the only means
through which the withdrawal can be
made.
ISSUE BONDS TO DO 1T.
This can be most successfully and eco
nomically accomplished by authorizing
the secretary of the treasury to issue from
time to time bonds payable in gold, bear
ing interest at rate not exceeding 3 per
cent per annum and having a long time
to run, and to exchange the bonds for
United States notes upon such terms as
may be most advantageous to the gov
eminent or sell them abroad for gold
whenever in the secretary of the treas
ury's judgment it is advisable to do SO
and to use the gold thus obtained in re-
deeming the outstanding notes
The secretary favors the passage of
law allowing national banks to estab-
fish branches in small towns with a view
to bringing them closer TO the people in
parts Of the country remote from cities,
by which their usefulness would be
greatly enhanced.
The secretary, in closing his report
! says that it is not probable that any
plan for the permanent retirement IF
United States and treasury notes will
be adopted that will not require consid-
cradle time for it's complete execution
and he therefore urges upon congress
| the propriety Of prohibiting any further
| issues Of such notes or Of national banks
of less denominations than $40, thus
making room in the circulation for sill
yer coins and silver certificates of small
denominations. This, he says, would in
| crease their use among the people and
| prevent their frequent return to and &C
emulation in the treasury.