The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1895-12-06

having been acquired by tie treasury within
bonds. The PRESIDENT here gives figures show
Ing that since Jan. l. 1873. xt3OOO.WO in gold
has been Withdrawn. and OF this Ss:' 90 OO
went 10 redeem greenbacks all Of which are
still In circulation.
PAID THEM BUT STILL OWE THEM.
Retirement Of the Greenbacks the Only
Remedy For This situation.
In other words the government has paid In
gold more than nine tenths of its Unitei States
notes aud still owes them ali. IL has paid in
gold about one half OF its notes given for silver
hssss y
~ all this we are remin cd TO carry on this
astounding financial scheme the government
QUO In establishing . gold reserve. and OF
81 - 8l5. 40 in efforts TO maintain L.: that the
annual interest charge on such bonded in
tinuance OF our present course may result In
further nond issues. and that we have suffered
or are threatenet with q this for the sake Of
supplyins gold for foreign shipment or
facilitating it, boarding at home situation
10 exhibited which certainly ought to arrest at
tention and provoke immediate legislative re-
lief
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
der the act Of f Ys 1 believe this could be quit.
readily accomplished by the exchange OF these
notes for United States bonds Of small as well
interest. They should be long term bonds.
thus increasing their desrability as invest
ments, and because their payment could be
present financial burdens and perplexities.
when, with increased prosperity and resources,
they would be more easily met
One Feature of the Plan.
To further insure the cancellation Of these
may be added to our currency in lieu of them,
. feature in the plan should be an authority
given TO the secretary OF the treasury to dis.
pose of the bonds abroad for gold II necessary
to complete tue contemplated redemption and
cancellation, permittin! him to use the pro-
of the Oh n saen tSt S m sd
that may be received by the government on
any account. The increase Of our bonded
compensated by renewed activity and
enteIpris in all business circles, the re-
stored confidence at home, the reinstated
stimulation of every interest and industry that
would follow the cancellation of the gold-de-
mand obligations now affiicting US. In any
event the bonds proposed would stand for the
extinguishment OF troublesome Indebtedness.
while in 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
lieved since 1864 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 $4S6 100
might be supplied by such gold as would 10
used their reti rement or ny an crease In
the circulation OF our ational banks. Though
the aggregate capital OF those now in existence
amounts to more than $68a OOO,0U tneir out
standing circulation based ON bond security
amounts to only about $500 o. %. They are
authorized T. issue notes amour ing TO w per
cent. of the bonus deposited to secure their cir
culation. but in no event beyond the amount OF
per cent tax on the circulation they issue
think they should be allowed to issue circu
lation equal to the par val q of the bonds they
deposite to secure it, and that the tax on their
circulation should be reduced to one fourth OF
one per cent, which would un ioubtedly meet
all the expense the government incu on their
account In addition they should be allowed
to substitute, or deposit, In lieu OF the bonds
now required as security for their circulation
those which would be issued for the purpose Of
retiring the United States notes and treasury
notes.
The banks already existing, If they desire to
avail themselves of the provisions OF law thus
modified, could issue circulation in addition 10
that already outstanding amounting TO S4S7,-
OOO,OOU, viii, h would nearly or quite equal the
currency proposed to be cancelled. AT any
rate, should confidently expect TO scs<the ex-
listing national banks or Others TO be organized
ments to issue circulation and promptly nil
any vacuum and supply every currency need.
1t has always seemed to me that the provis-
ions of law regarding the capital or national
banks which operate as limitation to their
location fails 10 make proper compensation
for the suppression of state banks, which
come near TO the people in ali sections of the
country and readily furnished tnem with
banking accommodations and facilities. Any
Inconvenience or embarrassment arising
from these restrictions on the location OF
national banks might well be remedied 10y bet
ter adapting the present 5, stem TO the creation
OF banks in smaller communlt ties or by per-
uniting banks OF large capital to establish
bran hes in such localities as would serve the
people-so regulated and restrained as TO SO.
cure their safe and conservative control and
management
Would Expect Gold to Giro ulate.
But there might not be the necessity for such
an addition to the currency by new issues of
bank circulation as at first glance is indicated.
IL we should be relieved from maintaining
gold reserve under conditions that constitute
It, the barometer OF our solvency, and II our
treasury should no longer be the foolish pur-
veyor OF gold for nations abroad or for specu-
lation 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 do not over
look the fact the cancellation Of the treasury
notes issued under the silver purchasing act OF
1890 would leave the treasury in the
actual ownership Of sufficient silver, includ-
ing segniorage, TO coin nearly $l7S,0OOOOO 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, a. in the Judgment
Of the secretary OF the treasury the necessities
Of the country should require.
Whatever IL attempted should be entered
upon fully approaching the fact that by care
less, easy descent we have reached dangerous
depth, and that ascent will not be accom-
plished without laborious toll and struggle.
We shall be wise If we realize that we are
financially i'll and that our restoration to
health may require heroic treatment and un.
pleasant remedies.