The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1895-12-04

maintain 1t that the apnusl fnta,ast
charge on this Indebtedness la more
shan $500, COO, 600 o situation is exhibited
which certainly ought to arrest atten.
ZION and provoke immediate legislative
relief.
Remedy Suggested.
am convinced that the only thorough
ana practicable remedy for our troubles
IS FOUND In the retirement and capcella.
ton OF our United States notes. com.
monty called greenbacks. and the out
Standing treasury notes issued by She
uove.nment In payment of silver pur-
ohases under the act of 1890.
l believe this could be quite readilv
accom- plished by the exchange of these
notes for United States bonds of small
rs we'll as large denominations, bearing
a low rate OF interest. They should be-
iong term bonds, thus increasing their
uesirao1iity as investments and because
thelr payment could be we'll postponed
90 q period far removed from present
nhanclai ourden and ~perplexities,
when with increased prosperity and
resources they would be more essilv
met 10 further insure the cnlcula.
ZION and also provide q way by which
gold may bs nddsd to our currency in
lieu OF them, q feature OF the plan
should be an authority given to tho
secretary OF the Treasury to dispose OF
tho bonds abroad for gold If necessary
10 complete the contemplated redemp-
.loh anu cancellation, permitting him
TO use the proceeds of such bonds to
take up and cancel any of tho notes
that may be in the Treasury or thst
may be received by the Government on
any account.
!he increase OF our bonded debt in
VOWED in this plan would be simply
compensated by renewed activity and
enterprise In all business cl.clcs, tho
restored confidence at home, the rein
ssateo talth OF our monetary strength
abroad and the stimulation Of every in
terest and industry that would follow
the cancellation OF tbs g~old-demand OBJ.
iigatlons now affecting us. In any event
tne oonds proposed would stand for ths
extinRuishment OF a troublesome indebt-
eoness, while in the path we now follow
there Turks the menace of uneuding
bonds with our indebtedness still uudis-
charged and aggravated in every
feature; The obligations necessary to
iund this Indebtedness would not equal
In amount those from which we have
been relieved since 1884 and payment
beyond the requirements of the sinking
fund out OF our surplus revenues.
The currency Withdrawn by the re-
quirement of the United States and
treasury notes, amounting Co probably
less than sis6, 900, 600. might be supplied
by such gold IS would be used on their
retirement or by an increase in their
circulation OF our national banks.
Though the aggregate capital of those
now In existence amounts to more thai
Soo4, OO0, 600, the outstanding circulation
based on bond security amounts to only
about $50. GOO, 600. They are author.
lied to issue notes amounting to ninety
per cent. of the bonds deposited 10 se-
cure their circulation. but in no event
beyond amount Of their capital stock
and they are obliged to pay one per cont.
Tax on the circulation they issue.
The National Banks.
think they should be ALLOWED to
issue circulation to the amount of the
bonds they deposit to secure ie, and that
the tax on their circulation should be-
reduced to one.fourth of l per cent,
which would undoubtedly meet all the
expense the Government incurs ON their
account In addition they should be al
lowed to substitute or deposit in lieu of
the ponds now deposited as security for
tneir circulation, those which would be
issued for the purpose of retiring the
unlted States treasury notes. The banks
already existing on the gold, who de-
sired to avail themselves Of the provis-
IONS OF law thus modified, could issue
circulation In addition to tina already
outstanding. amounting to S47s .OOO, 600,
which would nearly or quite equal the
currency proposed to be cancelled. At
any rate 1 should confidently ex oect to
see the existing national banks or others
organized avail themselves of the pro.
posed encouragement TO issue circuia-
tion and promptly fll any vacuum and
supply every currency need.
Favors Small Banks.
1t has always seemed to me that the
provisions OF law regarding the capital
OF national banks which operate as a
limitation to their location fails to make
proper compensation for the suppress
sion OF State banks which came near to
me people In all sections of the coun-
try snd really furnish them with bank
ing accommodations and facilities. Any
inconvenience or embarrassment from
these restrictions in the location
OF national banks might we'll be rem
edied by better adapting tho present
system to the creation Of banks in
smaller communities or by permitting
oanks OF large capital to Establish
branches In suoh localities as would
serve the people,, so regulated and
restrained as to secure their safe and
conservative control and management
Gut there might not be the necessity
for such an addition to the currency by
new Issues OF bank circulation, as at
hrst glance Is indicated, II we would be
relieved from maintaining q god
reserve under conditions that cons,i.