The Sauk Centre herald., 1896-01-09

of infinitely greater injury to our people
than tho imposition of ten times the
amount of taxation.
It Is said that the law for their contin-
ued reissue Is mandatory. That Is not
fair construction of the law. The plain
meaning of 1t Is that the redemption Of
the notes shall not cause their cancella-
tion. They are placed on the footing Of
bank notes. What solvent bank would re-
Issue Its notes when there was run upon
itp 1t would hold them until the demand
ceased. The government ought to exercise
the same prudence. The president Is Of the
opinion that the United States notes and
treasury notes should be retired and give
place to bank notes. This is question for
congress to decide. 1t is certainly not Of
that opinion now, nor was the last CON-
gress of that opinion. Outside of q few
large cities where banking facilities are
abundant and business Is conducted by
checks and commercial paper there Is no
desire for the retirement of national paper
money. 1t is not right for the executive
authorities to discredit this money by u.s.
ing it for current deficiencies. 1t was the
use and dispersion of the redemption fund
that created the circle of which he COM
plains.
I believe that under existing laws the
aggregate sum of United States notes and
treasury notes issued under the act of
1890, amounting to about $3.50, 000, 600,
can be easily maintained at par with coin
If the two amendments have mentioned
are adopted by congress. These notes are
legal tender for all debts public or pri-
vate. They are debt of the United States
without interest and without other mate
rial cost to The government than the inter-
est on the cost of the coin or bullion held
in the treasury to redeem them. They are
preferred by the people to any other form
of paper money that has been devised.
They have all the sanctions of law and all
the security that has been or can be given
by our bonds. They have the pledge of the
public faith that they will be redeemed in
coin. The substitution of these notes for
state bank paper money is oneo of the great
est benefits that have resulted from the civ
il war. These notes have all the sanction,
protection and security that have been or
can be given to our national bank notes,
with the added benefit that the large saw
ing derived from them inures to the peo-
pie of the United States instead of the
bankers. Another reason founded upon
belief is that the national banking system
could not long endure if the United Sta, es
notes were withdrawn. will not at this
time discuss this or any other of the numer-
Gus financial questions involved, such as the
policy of requiring the duties or imports
to be paid in gold. The imports are pur-
chased with gold, are paid for in gold, and
we may require gold duties.
Disposition of Silver Certificates.
The disposition of silver certificates is a
much more serious problem. They are in
express terms redeemable in silver dollars
While the silver dollars are maintained at
par with gold it would seem that there
was no injustice in paying the silver dol
lars for silver certificates Then comes up
the question of free coinage of silver,
which regard as the most dangerous pol
ICY All these are vital questions l do not
wish to mingle with the pressing recon-
mendation Of the president in his last an
nual message that authority be given the
secretary of the treasury to issue bonds of
the United States bearing low rate CT
interest payable by their terms in gold for
the purpose of maintaining sufficient
gold reserve and also for the redemption
and cancellation of outstanding United
States notes and the treasury notes issued
for the purchase of silver under the law of
$780," He recommends the exchange of
gold interest bearing bonds for the legal
tender notes of the United States and the
substitution of national bank notes as our
| only currency. He Is supported in this by
large and influential classes of our fellow
citizens, most of them engaged in banking
or classed as capitalists. Their arguments
mainly rest upon the difficulties encoun-
tered by the administration in maintain
ing a reserve in coin to redeem United
States notes. They forget that during a
period Of IA years, when the revenues of
the government exceeded the expenditures
and when the public debt was being re-
| duced with .unexampled rapidity, there
was no difficulty In maintaining our notes
at par with coin. There is scarcely doubt
that In all probable conditions Of trade
or finance, except the contingency of war,
the whole mass Of the United States notes
now in circulation can be maintained at
par with coin If it is supported by re-
serve of gold coin or bullion or silver bull
lion in due proportions equal to one-third
| or one-fourth of the amount Of such notes.
Concerning Binetallism.
A careful study of the systems of bank
| ing, currency and coinage adopted by the
principal nations of Europe convinces me
that our system, when cured Of few de-
fects developed by time, founded upon the
bimetallic coinage of gold and silver main
tanned at par with each other, with free
national banks established in every city
and town of Importance in the United
| States, issuing their notes secured beyond
| doubt by United States bonds or some
equivalent security redeemable on demand
in United States notes, and the issue of
an amount of United States notes and
treasury notes equal to the amount now
outstanding, with provision for a ratable
increase with the increase Of population,
always redeemable in coin, supported by
an ample reserve of coin in the treasury
not to be invaded by deficiencies of revenue
and separated by the subtreasury system
from all connection with the receipts and
expenditures of the government a
| system would make our money current In
commercial circles in every land and CLINE,
better than the best that now exists In
Europe, better than that Of Great Britain,
which now holds the purse strings Of the
| world.
It Is not given to man to foresee witt,
certainty the future, but II we may judge
the future by the past, the growth and
progress Of our country will continue, the
diversity and extent of our industries will
expand, the vast plains Of our broad terri.
tory will be teeming with population. The
Ia