The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1895-02-07

| EuperVenlng, CenQlng 10 make the DOnuS
which may be issued to replenish our
gold less useful ior that purpose. An
adequate gold reserve is in all circum-
stances absolutely essential to uphold
ing our public credit and to the main
tenance of our high national character
and our gold has again reached such a
stage of diminution as to require its
speedy reinforcement.
The aggravatiOns that must inevitably
follow the present conditions and meth
DDS will certainly lead to misfortune and
loss, not only to our national credit and
prosperity and to our financial enter
prise, but to those of our people who
seek employment and means of liveli-
hood and to those whose only capital is
their daily labor. 1t will hardly do to
say that a simple increase of revenue
will cure our troubles. The apprehen-
sion now existing and constantly in
creasing as to our financial ability does
not rest upon calculations of revenues.
investors abroad and our people a. home
were fixed upon the Revenues of this
government. Changed conditions have
attracted their attention to the gold of
the government. There need be no
penses with such money as we have.
| There is now In the treasury a comfort
! able surplus of more than $4,000, 900,
not meet our difficulty. | cannot see
that differences of opinion concerning
the extent to which silver ought to be
coined or used in our currency should
interfere with the counsels of those
hnc ty ! 10 fn I fx,t no lie
apparent in our financial situation.
They have to consider the question of
national credit, and the Consequences
that will follow it's collapse, whatever
their ideas may be and however insisted
on as to silver and bimetalism. The
proper solution of the questi n now
pressing upon us only requires the rec
IGNITION of gold as well as silver, and
the concession of its impol lance right
! fully or wrongfully acquired as basis
of material credit, and its necessity in
the honorable discharge of our obliga-
tions payable in gold.
| do not understand that the real
friends OF silver desire the condition
that might follow the inaction or neg ect
to appreciate the meaning of the present
exigency, if it should result in the en-
tire Punishment OF gold from our fnan-
cial and currency arrangements. Be-
sides treasury notes, which should
certainly be paid in gold, amounting to
neal y $500, 900, 900, there will fall due
in 1904 500, 900, 900 bonds issued during
| last year, for which We have received
gold, and in 1897 nearly $500. 100000
per cent bonds issued in 1877.
In my opinion the Secretary OF the
treasury should be authorized to issue
bonds of the government for the pur-
pose Of procuring and maintaining a
sufficient gold reserve, and the redemp-
ton and cancellation OF United States
legal tender notes and treasury notes
issued for the purchase of silver under
the law of July IA, 1890.
We should be relieved from the hui
initiating process of issuing bonds to
procure gold to be Immediately and
completely drawn out on these Obliga-
tions for purposes not related to the
benefit of our government or our peo-
pie. The principal and interest OF these
bonds should be payable on their face
in gold, because there would not PROB
ably be any difficulty in favorably dis
posing of bonds not containing this
stipulation. | suggest that the bonds
be issued in denominations OF $50 and
$50 and their multiples and that they
bear interest at rate not exceeding 5
per cent per annum. L do not see why
they could not be made payable fifty
wears from their date, we of the present
generation having large amounts to pay
if we meet our obligations, and as long
bonds are the most salable the secretary
OF the treasury might we'll be permitted
at his discretion to receive on the sale of
bonds legal tender and treasury notes
to be retired. and of course when they
are thus retired or redeemed in gold
they should be Cancelled.
These bonds under the existing laws
could be deposited by the national banks
as security for circulation, and such
banks should be allowed to issue circula-
ton up to the face value of these or any
other bonds so deposited, except bonds
outstanding bearing only 2 per cent in
terest and which sell in the market at
less than par. National banks should
not be allowed to take out circulating
notes of less denomination than $40, and
when such as are now outstanding reach
the treasury, except for REDEEM ptlon and
retirement, they should be Cancelled and
notes of SO and upward issued in their
stead. Silver certificates of the denOmi-
nation of SO and upward should be re-
placed by certificates of denominations
under SO as constant means for the
maintenance of reasonable supply Of
gold in the treasury. Our duties on i'm
ports shoull be paid in gold, allowing
all other dues of the government to be
paid in any other form of money. | be-
lieve all the provisions l have suggested
should be embodied in our laws if we
are to enjoy complete reinstatement OF
sound financial condition. They need
not interfere with any currency scheme
for providing for an increase of the Cir
culating medium through the agency OF
National or State banks since they can
easily be ad justed to such scheme.
Objection has been made to the is
suance of interest bearing obligations
for the purpose of retiring non-interest-
bearing notes. In point OF fact, how
ever, these NOES have burdened us with
large load of interest. The interest on
the original issue of bonds, which in
gold constituted the reserve for the pay
ment of these notes, amounted to $70,-
326, $50 on January l, 1895, and the an
nual charge for interest on these bonds
and those issued for the same purpose
last wear will be 50 AS 900, dating from
January l. 1895. While the cancellation
of these notes would not relieve us from
obligations already incurred on their ac-
count, these facts are given with the
suggestion that there existence was not
free from interest charges, and that the
! longer they are outstanding, judging
from the experience of last year, the
more expensive will they become.
In conclusion | desire to frankly con-
! fess my reluctance to issuing more bonds
!, in our present circumstances, and with
the prospects of no better results than
have lately followed that course. can