The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1896-12-11
THE FINANCIAL QUESTION.

This reference to the condition and
prospects of our revenues naturally sug-
gests an allusion to the weakness and
vices of our financial methods. They have
been frequently pressed upon the atten-
ton of congress in previous executive
communications, and the inevitable dan
ger of their continued liberation pointed
out. Without now repeating these de-
tails cannot refrain from again earnestly
presenting the necessity of the prompt re-
form of a system opposed to every prin-
ciple of sound finance, and shown by ex-
perience to be fraught with the 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 the country's substance and
the estrangement of brethren. They are
now past and forgotten. Even the dis
tressing loss of life the conflict entailed is
but sacred memory, which fosters pat
riotic sentiment and keeps alive tender
regard for those who nobly died. And
yet there remains with us today, in full
strength and activity, as an incident of
that tremendous struggle, a feature of its
financial necessities not only unsuited to
our present circumstances, but manifestly
q disturbing menace to business security
and an ever present agent of monetary
distress.
Because we may be enjoying a temper
airy relief from it's depressing influence,
this should not lull us into a false secur
ity, nor lead us to forget the suddenness
of past visitations.
am more convinced than ever that we
can have no assured financial peace and
safety until the government currency OBJ
legations upon which gold may be de-
manded from the treasury are withdrawn
from circulation and cancelled. This
might be done, as has been heretofore rec
commended, by their exchange for long
term bonds bearing 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, 1890, now paid in gold when
demanded, would not create much dis
turbance, as they might from time to time
when received in the treasury by redemp
ton in gold or otherwise, be gradually
and prudently replaced by silver coin.
This plan of issuing bonds for the pur-
pose of redemption certainly appears to be
the most effective and direct path TIC
needed reform.
In default of this, however, it would be
q step in the right dire ton if currency
obligations redeemable in gold, whenever
so redeemed should be cancelled instead
of being reissued This overaction would
be a slow remedy, but it would improve
present conditions
National banks should redeem their
own notes. They should be allowed to is
sue circulation to the par value of bonds
deposited as security for it's redemption,
and the tax on their circulation should be
reduced to one-fourth of l per cent.
The entire case may be presented by the
statement that the day of sound financial
method will not dawn upon us until our
government abandons the banking bust
ness and accumulation of funds, and con-
fines it's monetary operations to the re-
ceipt of the money contributed by the
people for it's support, and to the expendi-
ture of such money for the peoples ben
Oft