The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-12-04
PRESIDENTS MESSAGE
TContinued from Thfrd Page. ]

necessary to complete the contemplat-
ed redemption and cancellation, per-
hitting him to use the proceeds OF
such bonds to take up and cancel any
of the notes that may be in the Treasu-
| nv or that may be received by the gov
crnment on any account.
| The Increase of our bonded debt in
| volved dn this plan would be amply
! compensated by renewed activity and
| enterprise in all business circles. The
restored confidence at home, the re-
| instated faith in our monetary
| strength abroad. and the stimulation
| of every interest and industry that
| wouldrfolIow the cancellation OF the
| gold demand obligations now atdlctlng
| us. In any event the bonds proposed
| would stand for the eXtinguishment
| of a troublesome indebtedness, while
| in the paths we now follow there turks
| the menace of unending bonds with our
| Indebtedness still undischarged and
| aggravated in every feature. The OBJ
| legations necessary TO fund tins IN
| debtedness would not equal in amount
| those from which we have been feliey-
| ed since 1884 by anticipation and pay
| ment, beyond the requirements OF the
sinking fund, out of our surplus rev
| enues.
The currency withdrawn by the re-
| tirement of the United States notes
| and Treasury notes, amounting to
| probably less than $486,000, 900 might
| be supplied by such gold as would be
used on their retirement or by an in
! crease in the circulation Of our nation
| al banks. Though the aggregate cap
-ss.4.N n1sga tC
| to more than $664000,00 their out
standing circulation based on bond Sc
| curity amounts to only about $780,
| coo, 900. They are authorized to issue
notes amounting to ninety per cent of
| the bonds deposited to secure their cir
| culation. but in no event beyond the
amount of their capital stock, and they
are obliged to pay one per cent tax on
| the circulation they issue
| think they should be allowed to is
sue circulation 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 undoubtedly
meet all the expense the government
incurs on their account. I'm addition
they should be allowed to substitute
or deposit in lieu of the bonds now re-
quired 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 il they
desired to avail themselves of the pro-
visions of law thus modified, could is
sue circulation in addition to that al
ready outstanding. amounting to
S47S. 900 900 which would nearly or
quite equal the currency proposed to
be cancelled. At any rate, ] should CON
fidently expect to see the existing Ma
tional banks or others to be organized
avail themselves of the proposed en-
couragements to issue circulation and
promptly fill any vacuum and supply
every currency need.
STATE BANK QUESTION.
IT has always seemed to me that the
provisions of law regarding the capital
OF national banks, which operate as
limitation to their location, ought to
make proper compensation for the
suppression of State banks, which
came near to the people in all sections
of the country and readily furnished
them with the banking accommoda-
lions and facilities. Any inconyeni-
ence or embarrassment arising from
these restrictions on the location of
national banks might we'll be remedied
by better adapting the present system
to the creation of banks in smaller
communities or by permitting banks
of large capital to establish branches
in such localities as would serve the
people, SO regulated and restricted as
10 secure their safe and conservative
control and management.
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. If we should
be relieved from maintaining a gold
reserve under conditions that consti-
| tute it, the barometer of our insol-
veHcy, and if our treasury should no
| longer be the foolish purveyor of gold
for nations abroad or for speculation
and boarding by our citizens at home,
! should expect to see gold resume it's
natural and normal functions in the
| business affairs of the country and
cease to be an object attracting the
timid watch OF our people and exciting
| their sensitive imaginations.
| | do not overlook the fact that the
cancellation of the treasury notes
| issued under the silver purchasing act
of 1890 would leave the treasury ia the
actual ownership of sufficient silver,
including seigniorage, to coin nearly
| SITS, 100000 in standard dollars. it is
worthy of consideration whether this
| might not, from time to time, be CON
| verted into dollars or fractional coin
and slowly put into circulation, as in
| the Judgment of the Secretary of the
| Treasury the necessities of the coun-
/ try should require.
| Whatever is attempted should be en-
tered upon fully appreciating the fact
that by careless, easy descent we have
reached dangerous depth and that
| our ascent will not be accomplished
except with laborious toll and strug
| gle. We shall be wise if we realize that
we are financially i'll and that our res
! toration to health may require heroic
| treatment and unpleasant remedies.
NOT QUANTITY BUT QUALITY.
In the present stage OF our difficulty
| it is not easy to understand how the
amount of our revenue receipts direct
| " affects it. The important question