The herald., 1896-12-08

l
| past and forgotten. Even the distress
| ing loss of life the conflict entailed Is
| but a sacred memory which fosters pa
! triotic sentiment and Keeps alive ten
der regard for those who nobly died.
| And yet there remains with us today, in
| full strength as an incident of that tre-
I mendous struggle. feature of its finan-
| cial necessities, not only unSuited to our
present circumstances. but manifestly
a disturbing menace to business security
and an ever-present agent of monetary
distress.
! Because we may be enjoying teN-
porary relief from its depressing in
| iluence this should not lull us into false
| security nor lead us to forget the sud-
denness of past visitations.
RETIREMENT OF PAPER.
I am more convinced than ever that
we can have no assured financial peace
! and safety until the government cur
rency obligations upon which gold may
be demanded from the treasury are
withdrawn from circulation and can
celed. This might be done, as has
! been heretofore recommended, ny
| their exchange for long term bonds
bearing a low rate of interest or by
their redemption with the proceeds Of
| such bonds.
Even if only the United States notes,
known as greenbacks. were thus retired,
| it is probable that the treasury notes
issued in payment of silver purchases
under the act of July IA, 1910, now paid
| in gold when demanded, would not cre-
ate such disturbance if they might from
| time to time when received in the treas
ury by redemption in gold or otherwise.
be gradually and prudently replaced
by silver coin. This plan of issuing
| bonds for the purpose of redemption cer-
| tanly appears to be the most effective
and direct path to the needed reform.
In default of this. however, would be
| in ba rio oh direction If
obligations redeemable in gold, when
| ever so redeemed, should be Cancelled
| instead of being ressued. This opera
ton would be a slow remedy. but 1t
would improve present conditions. Ma
tional banks should redeem their own
notes They should be allowed to issue
| notes circulated to the par value OF
bonds deposited as security for Its re-
demption and the tax on their circula-
tion should be reduced to one-fourth or
| one per cent.
In considering projects for the retire
ment of United States notes and treas
| ury notes issued under the law of 1890.
| L am of the opinion that we have placed
too much stress upon the danger of con-
tracing the currency, and have calcu-
lated too little upon the gold that woull
be added to our circulation If invited to
| us by better and safer financial meth
| DDS Jt is not so much contraction
of our currency that should be avoided
might be obviated and any fear of harm
full contraction at the same time remov-
| ed by allowing the organization OF
smaller banks and in less populous com
munities than are now permitted. and
authorizing banks to esta ablish branches
in small communities under proper re-
striction.
The entire case may be presented by
the statement that the day of sensible
and sound financial methods will not
dawn upon us until the government
| abandons the banking business and the
accumulation of funds and confines its
monetary opera tions to the receipt
of money contributed by the people for
its support and to the expenditure of
such money for the peoples benefit Our
business interests and all good citizens
long for rest from feverish agitation
and the inauguration by the government
of reformed financial policy which will
I encourage enterprise and make certain
the rewards of labor ard industry
AGGREGATED CAPITAL.
Another topic in which the people
rightfully take a deep interest may be
here briefly considered. l refer to the
existence of trusts and other huge as-
gregations of capital, the object of which
is to secure the monopoly of some par
| ticular branch of trade, industry or
commerce, and so stii1e wholesome COM
petition. When these are defended it is
| usually on the STOuHu tlldt lHOuSH tHey
| increase profits they also reduce prices
and thus benefit the public. 1t must be
remembered, however, that a reduction
| of prices to the people is not one of the
real objects of these organizations, nor
is their tendency necessarily in that di-
rection. If it occurs in a particular case
it is only because it accords with the
purpose or interest of those managing
! the scheme.
Such occasional results fall far short
of compensating for the evils charged
to the account of trusts and monopolies
Their tendency is to crush out individual
independence and to hinder or prevent
the free use of human faculties and the
full development of human character
Through them the farmer. the artisan
and the small trader is In danger of dis
lodgment from the proud position OF
being his own master, watchful of all
| that touches his country's prosperity,
! in which he has an Individual lot, and
interested in all that affects the advan-
tages of business of which he is a factor
to be relegated to the level of a mere
appurtenance to a great machine, with
little free will. with no duty but that
of passive obedience, and with little hope
or opportunity of rising in the scale
of healthful and responsible citizenship
To the instructive belief that such Is the
inevitable trend of trusts and monopo-
lies is due the wide spread and deep seat
ed popular aversion in which they are
| held and the not unreasonable insist
ence that whatever may be their Incl
dental economic advantages, their gen
eral effect upon personal character, pros
poets and usefulness cannot be other
wise than injurious.
Though congress has attempted to deal
with this matter by legislation, the laws
passed for that purpose thus far have
proven ineffective, not because Of any
lack of disposition or attempt to enfore
them, but simply because the laws them
selves as interpreted by the courts do not
reach the difficulty. If the insufficiency
of existing laws can be remedied by FUR
ther legislation it should be done. 1t
should be recognized, however, that all
financial legislation on this subject may
fall short of it's purpose because OF IN
herent obstacles, and also because Of the
complex character of our governmental
system, which, while making the fed
eral authority supreme within it's sphere,
has carefully limited that sphere by
bounds which cannot be transgressed,,
The decision of our highest court In a
precise question renders 1t doubtful
whether the evils of trusts and monepp-
lies can be adequately treated through
federal action unless they seek directly
and purposely include in their objects
transportation or intercourse between
states or between the United States and
foreign countries. 1t does not follow,