Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-12-08
OLD FINANCIAL THEORIES.
The Same Story About Retiring the Green
backs, Going Out of the Banking Busi-
ness and No Danger from Contraction.

backs, Going Out of the Banking busl-
ness, ana No Danger from Contraction.
This reference to the condition and pros
poets of our revenues naturally suggests
an aIusion 10 the weakness and vices Of
our financial methods. They have been
frequently pressed upon the attention OF
Congress I'm previous executive communi-
cation and the inevitable danger OF their
continued liberation pointed out With
out now repeating these details. l cannot
refrain from again earnestly presenting
the necessity of the prompt reform of
system opposed 10 every rule OF sound
finance and shown by experience TO be
fraught with gravest peril and perplexity.
The terrible civil war which shook the
foundations Of our government more than
thirty years ago brought in its train the
destruction of property. the wasting Of
our country's substance and the estrange-
ment of brethren. These are now forgot
ten Even the distressing loss Of life and
conflict entailed is a sacred memory which
fosters patriotic sentiment and feeps alive
a tender regard for the men who died. and
vet there remains with Us today. In fun
strength and activity. as an incident or
that tremendous struggle. feature OF It's
financial necessities not unsuited TO our
circumstances. but manifestly a disturb
ing menace to business security and an
ever present agent of monetary distress.
Because we may be enjoying a tempo
rary relief from its depressing influence
this should not lull US into a false security
nor lead us TO forget the suddenness Of
past visitations.
/ am more convinced than ever that we
can have no assured financial peace ana
safety until the government currency obli-
cations upon which gold may be demand
ed from the treasury are withdrawn from
circulation and cancelled. This might be
done. as has been here. ofore recommend
ed. by their exchange for long-term bonds
hearing a. low rate Of interest of by their
redemption with the proceeds OF such
bonds.
Even If only the United States notes,
known as greenbacks. were thus retired
if is probable that the treasury notes, is-
sued in payment of silver purchases I'M
der the act Of July IA, 1880, and paid in
gold when demanded, would not create
much disturbance as they might from
time TO time when received in the re-
demption of gold or otherwise, be grad
ualIy and p-udently replaced by silver
coin.
This plan OF issuing bonds for the pur-
pose Of redemption appears TO be the most
effective and direct path to the needed
reform.
In dceault Of this, however, it would
be a step in the right direction II curren-
cy obligations redeemable in gold when
ever so redeemed. should be cancelled in
stead of being re-issued. This operation
would be a slow remedy, but 1t would I'M
prove present conditions.
National banks should redeem their own
notes. They should be allowed to issue
circulation to t..c par value Of bonds de-
posted as security for its redemption. and
the tax on their circulation should be re-
duced to one-fourth of 1 per cent.
In considering projects for the retire
ment Of United States notes and treasury
notes issued under the new law Of 1890.
7 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 would
be added to our circulation If invited TO
use by better and safer financial meth
DDS.
It is not so much a contraction OF our
currency that should be avoided as its un-
equal distribution. This might be obvi-
ated. and any fear Of harmful contrac-
/, ton at the same time removed by allow
ing the organization Of smaller banks and
in less populous communities than are
now permitted. and also authorizing ex-
listing banks to establish branches in
sroaU communities under proper restric-
tons.
The entire case may be presented by
the statement that the day Of sensible
and sound financial methods will not dawn
upon us until our government abandons
the banking business and the accumula-
ton Of funds and confines its monetary
operations to the receipt Of the money
contributed by the people fir its support
and to the expenditure Of such money for
the peoples benefit.
our business interests and all good cit
liens long for rest from feverish agitation
and the Inauguration by the government
OF a reformed financial policy which will
encourage enterprises and make certain
tho rewards of labor and industry