Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-12-04

issued.
Though the amount of gold drawn from the
treasury aprea 20 be very large, as gathered
from the facts and figures herein pres ,nted il
. tuatly was mu b l,rger. cons derable SIMS
the several perio Is state 1 without the iseue of
bonds. The president here gives figures show
ing that since Jan. l, is.., S|ssOG,Un in gold
has teen withdrawn. anu % this 81. 900
went to redeem ereenbacks all of which are
still in circulation.
PAID THEM But STILL OWE THEM.
Retirement of the Greenbacks the Onlv
Remedy For This Situation.
In other words. the government. has Maid in
gold more than nine-tenths of its United States
notes and still owes hem all. 1t has paid in
purchases without extinguishing by such pay
ments one dollar OF these notes When added
t. all this we are remin ed to carry on this
astounding financial scheme the government
has incurred bonded indie tedness of Sos 500
0O in establish ing a gold reserve and of
81 2,3l 40 in efforts to maintain il; that the
annual interest charge such bonded in
debteiness is more that Sl1 900. % that a con-
tinuance of cur present course may result in
further tond issue s. and that we have suffered
. or are threat ne with a | this for the sake of
supplying gold for foreign shipment or
is exhibited which certainly ought to arrest at
lief 'e-
The Only Practical Remedy.
am convinced the only thorough and prac-
ticable 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 inpayment of silver purchases un-
der the act of is,O. believe this could be quite
readily accomplished by the exchange of these
notes for United States bonds of small as well
as large denominations, bearing low rate OF
interest. They should he long-term bonds
thus increasing their desirabiity as invest
ments. and because their payment could be
Well postponed TO a period far removed from
p present I'll financial burdens and perpexities,
they would be more easily met.
One Feature of the Plan.
To further insure the cancellation of these
notes and also provide way by which gold
3 feature i'll the plan should be an authority
given 10 the secretary OF the treasury to dis
pose of the bonds abroad for gold if necessary
TO complete tac contemplated redemption and
cancellation. perinittin. him to use the pro-
ceeds of such BOMBS TO take up and cancel any
Of the notes that may be in the treasury or
any account The increase OF our bonded
debt involves in this plan would be amply
enterpris-. in all business circles, the re-
stored confidence ut home. the reinstated
faith IN our monetary strength abroad and the
stimulation of every interest and industry that
would follow the cancellation of the gold de-
mand obligations now affecting u.s. In any
event the bonds proposed would stand for the
extinguishment of a troublesome Indebtedness.
while III the path we now follow there turks
the menace of unending bonds. with our in
debtedness 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 re-
leved since 1854 by anticipation and payment,
beyond the requirements of the sinking fund,
out OF our surplus revenues.
What Would supply the Currency.
The currency withdrawn by the retirement
amounting to probably less than SsS6,UW.UOO.
might be supplied by such gold as would
used o. their rcti ement or oy an crease in
the circulation Of our national banks ThouIh
the aggregate capital of those now in existence
amounts TO more than S6ji,OD0U, tueir out
standing circulation based on bond security
amounts to onl, about Sls1o u. o. They are
authoriz. al t issue notes amour ing to ~ per
cent. of the bonus deposited to secure their cir
culation, but i'll no event beyond the amount of
their capital stock. and they are obliged pay
per cent. tax ON the circulation they issue.
think they should be allowed to issue circu-
iaslon equal to the par val le of the bonds they
deposite to secure it and that tue tax their
circulation should he re iuced TO one fourth of
one per cent, which would un .oubtedly meet
al! tine ex ensc the government lncu ON their
account. In addition they SHOULD be allowed
to substitute. Or deposit. in lieu Of he bonds
now required as security for their circulation
those which would be issuei for the purpose of
retiring the United States not-s ana treasury
notes.
The banks already existing if they desire to
avail themselves OF the provisions OF law thus
modified, could issue circulation in addition to
that already outstanding. amounting TO $751;
"nW, whi h would nearly or quite equal the
currency proposed to he cancelled. At any
rate, 1 should confidently expect to see the ex
isting national banks or otherssto be organized
avail themselves of the proposed encourage
ments to issue circulation ana promptly I'LL
any vacuum and supply every currency need.
IL mas always seemed to me that the prOviS-
Ions OF law regarding the capital Of national
banks which operate limitation to their
location fails 10 make prope- compensation
tOr the suppression of state banks, which
come near to the people Ill all sections of the
country and readily furnished tnem with
huy.
inconvenience or embarrassment arising
from these restrictions on the location OF
national banks might well be remedied uy bet
ter adapting the present s. stem to the creation
OF ba ks in smaller commun. ties or by per-
uniting banks OF large capital to establish
bran hes IN such localities would serve the
people regulated and restrained as to
cure their safe and conservative control and
management.
Would Expect Gold to Giro ulate.
But there might not he the necessity for such
an addition to the currency by new issues of
bank circulation a. at first glance is indicated.
II we should be relieved from maintaining a
gold reserve under conditions that constitute
II, the barometer OF our sOlvency, and il our
treasury should no longer be the foolish pur-
veyor of gold for nations abroad or for specu-
latlon and boarding by our citizens at home,
/ should expect to see gold resume its natural
and normal functions in the business affairs of
the country and cease TO be an object attract
ing the timid watch of our people and exciting
their sensitive imaginations. 1 do not over
look the fact the cancellation % the treasury
notes 1ssusS uhuer the SILVER purchasing act OF
1891 would leave the treasury III the
actual ownership of sufficient silver, includ-
ing seigniorage. To coin nearly Sl1s.UO.w 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 secretary of the treasury the necessities
of the country should require.
Whatever IS attempted should be entered
upon fully approaching the fact that by care
less. easy descent we have reached 4 dangerous
depth. and that our ascent will not be accom-
pllshed without iaburlous toll and struggle.
We shall he wise if realize that are
financially Ill and that our restoration to
health may require heroic treatment and un-
pleasant remedies.
EFFECT OF THE REVENUE RECEIPTS,
No Gold Now Being Received in Payment
OF Duties on Imports.
In the present state of our difficulty it is not
easy II understand how the amount of cur