The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1896-12-12
VICES OF FINANCIAL METHODS.
Retirement of the GreenbacI<s Is
Strongly Urged.

Retirement the GreenDacks Is
Strongly Urged.
This reference to the condition and prospects
of our revenues naturally suggests an allusion
= to the weakness ana wees Of our financial
methods. They been frequently pressed
upon the attention of congress in previous ex-
ecutive communications and the inevitable dan
ger of their continued liberation pointed out
Without now repeating these details, can not
refrain from again earnestly presenting the
necessity OF the prompt reform of system OPP
posed to every rule of sound finance and shown
by experience to be fraught with the gravest
peril and perplexity.
The terrible civil war which shook the founda-
ions of our government more than 80 years ago
brought in it's train the destruction of prop
erty, the wasting of the countrys substance
and the estrangemeits of brethren. These
past and forgotten. Then the distressing
less of life the conflict entailed is but a
acred memory which fosters patriotic senti-
ment and keeps alive a tender regard for those
who nobly died. And yet there remains with
today in full strength incident of that
tremendous struggle feature OF lts nnahclai
necessities not only unsuited to our present
circumstances but mannifestly a disturbing
1enace to business security and an ever present
agent of distress. Because we may be en-
joying a temporary relief from its depressing
influence this should not lull US into false
security nor lead us to forget the suddenness
of past visitatons. 1 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demanded from the treasury are withdrawn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 cancelled. This might be
done, as has been heretofore recommended, by
their exchange for long time 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 1t is probable
that the treasury notes issued in payment of
silver purchases under the act of July IA. 1890,
now paid in gold when demanded would not
reate such disturbance as they might from
time to time when received in the treasury by
redemption in gold otherwise, be gradually
and prudentially placed by the silver coin. This
plan of issuing bonds for the purpose OF
redemption certainly appears to be the most
effective and direct path to the needed reform.
In default of this, however, it would be a
step in the right direction If the currency OBJ
legations redeemabe in gold, whenever so re-
deemed, should be cancelled instead Of being
eissued This operation would be a slow rem
edy but IL would improve present conditions.
The national banks should redeem their own
notes. They should be allowed to issue cir
culation to the par value of the bonds deposited
as security for its redemption and the tax on
their circulation should be reduced to one-fourth
of per cent.
United States notes and treasury notes issued
under the law of 1890, 1 am of the opinion that
we have placed too much stress upon the dan
ger of contracting the currency and have cal
culated too little upon the gold that would be
dded to our circulation IL invited to use better
nd safer financial methods 1t is not so much
contraction OF our currency that should b'
avoided such uneel-.l distribution. This
might be obviated and any fear of Harmful
contraction at the time removed by al
1owing the organization Of smaller banks anC
n less populous communities than are now per PEI,
pitted and authorizing banks TO establish
branches in small communities under prope
restriction.
The entire case may be presented by thu
statement that the day Of sensible and SCUM
financial methods will not dawn upon us unit
ur government abandons the banking bushes
and the accumulation of funds and confine
its monetary operations to the reception of tn
money contributed by the people for its sup
port and to expenditure of such money for tn
eople's benefit. Our business interests an
all good citizens long for rest from feveris
agitation and the Inauguration by the govern
pent OF a reform financial policy, which will
encourage enterprise and make certain tn
rewards of labor and industry.