Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1895-12-12

easily met Tofurther insure the cancellation
eod sy @ n m len az
them. . feature in the plan should be an aa>
s Of 30 sns %
essary, to compiete the contemplated redemp-
ton and cancellation. permitting him TO use
eel any of the notes that may be In the treas
ury. Or that may be received by the government
on any account rhe increase o. our bonded
debt Involved In this plan would be amply
compensated by e,.eweG activity and enter
prise in all business circ es. the restored conf
dence at home, the reinstated faith in our mon
etary strength abroad, and the stimulation of
every interest and industry that would follow
the cancellation of the gold-demand obiiga-
In any event the bonds proposed would stand
for the extinguishment of a troublesome in
there turks the menace OF unending bonds
with our Indebtedness still undischarged and
necasss1y to and this indeetedness Would nos
equal In amount those from which we have
been relieved, since 1884, by anticipation and
Ing fund out Of our surplus revenues.
The currency Withdrawn by the retirement Of
to less than
might be supplied by such gold as would be
used In their retirement or by an increase In
aggregate capital of those now in existence
amounts to more than 1851, 100000, their out
amounts to only about slsO, 100000. They are
authorized TO issue notes amounting to 30 per
cent. of the bonds deposited to secure their cir
their capital stock. and they are obliged to pay
the per cent. tax on the circulation they issue.
INCREASED NATIONAL BANK CIRCULATION.
/ think they ought to be allowed to issue cir
culation equal to the par value OF the bonds
they deposit to secure it, and that the tax on
their circulation should be reduced to one
fourth of one per cent, which would undoubt-
edly meet all the expenses the government in
ours on their account. In addition they should
be allowed to substitute or deposit in lieu of
the bonds required security for their
circulation those which would be issued for the
purpose OF retiring the United States notes
and treasury notes. The banks already exist
ing, il they desired to avail themselves OF the
provisions OF law thus modified, could issue cir
amounting to si7s, oOo. coo, which would nearly
or quite equal the currency proposed to be
cancelled. AT any rate I should confidently
expect to see the existing national banks or
others to be organized avail themselves of the
proposed announcements to issue circulation
currency note. II has always seemed to me
that the provisions of law regarding the CAPT.
tai of natioual banks which operate as limi-
tstion to their iocation fails to make nroner
compensation for the suppression of state
banks which came near to the people in all
sections of the country and readily furnished
them with banking accommodations.
ANY Inconvenience or embarrassment ariS-
national banks might well be remedied by bet
ter adapting the present system to the creation
OF banks In smaller communities, or by per-
hitting banks of large capital to establish
branches in such localities as would serve the
people, so regulated and restrained as TO Sc
cure their safe and conservative control and
management. But there might not be the ne
ceSsity for such an addition to the currency by
new issues OF bank circulation as at first
from maintaining "a gold reserve
under conditions that constitute it
and if or s6ou,d 0o longsp S
foolish purvevor of gold for nations abroad or
for speculation 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
exciting their sensitive Imagination.
THE SILVER sEIGNIoRAGE.
I do not overlook the fact that the cancella-
tion of the treasury notes issued under the sill
ver-purchasing act OF lsso would leave the
y sl7s0ooo in standard dollars: I.
this might not. from time to time,
be converted into dollars or fractional coin,
ment of the secretary Of the treasury. the
necessities of the country should reouire.
NOT QUESTION OF QUANTITY, But KIND.
In the present stage Of our difficulty 1t is not
revenue receipts directly affects it. The i'm
portant question is not the quantity of money
received in revenue payments but the kind OF
in sound financial condition. We are consid-
ering the government holding OF gold as re-
lated to the SoundnesS and affecting
our national credit and our monetary
strength. II our gold reserve had never been
impaired; II no bonds h;ad been issued to re-
pleniSh; il there had been no fear and timidity
concerning our ability to continue gold pay
ment: il any part OF revenues were now
paid in gold and il we could look to our gold
receipts as u means of maintaining a safe re-
serve, the amount of our reven les would be an
influential factor in the problem. But, unfor-
tunately. all the circumstances that might lend
weight TO this consideration are entirely lack
ing. In our present predcament no gold is re-
ceIved by the government in payment Of reve-
nue. charges. nor would there be 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 money are
only useful to the governmental paying its cur
in government possession does not in the least
contribute toward giving US that kind of safe
financial standing condition which is built
on gold alone. If it is said that those 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 states notes and treasury notes.
but the proposition that the treasury can on
demand draw gold from the people upon them
would be regarded in these days with wonder
and amusement, and even If this could be done
there is nothing to prevent those thus parting
with their gold from reganing it by the next
day or the next hour by the presentation OF the
notes they received in exchange for it.
The secretary OF the treasury might use such
notes taken from surplus revenue to buy
gold in the market. or course he could not do
this without paving premium. Private hold
parity TO maintain. would not be restrained
from max ing 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-
liSh general and universal premium upon it.
thus breaking down the parity between gold
and 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 and the absurd spectacle
the government and with United States notes
or treasury notes in his hand Immediately
clamoring for its return and u re sale at a
higher premium. II may be claimed that a
large revenue and reduced receipts might
favorably affect the situatioa under discussion
by affording oppot tunity of retaining these
notes in the treasury when received, and thus
preventing their presentation for gold.
Such retention TO be useful ought 10 be at
cisely what is prohibited so far as United
States notes are concerned by the law of 1878
forbidding their future retirement.
No FEARS OF OUR soLyENCY
Perhaps it is supposed that sufficient revenue
receipts would. in sentimental way, improve
the situation by inspiring confidence in our
exhaustion ana vet ali through our struggle to
maintain our gold reserve there never has been
any apprehension as to our ready ability to pay
our way with such money as We had, and the
question whether or not our current receipts
met Our current expenses entered into the es-
state of our funds. exclusive OF gold. was en-
tirely lmmateriai To the foreign creditor and
and his only concern was our ability to keep
on hand that kind of money.
On July l. 1892. more than n year and a half
before the first bonds were issued, to repl niSh
the gold reserve. there was a net balance in the
treasury. exclusive of such reserve, of less
to more than sliI.L0oOJ. which was the quiet
Ing feature of the situation. 1t was when the
stock of gold bean rapidly to fall that fright
were returned for SALE and debts owed abroad
were pressed for payment In the meantime
favorable Indications nd