Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-12-08

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tails 1 cannot refrain from again earnest
" 'pfGsen1fng the Necessity of the prompt
reform of SYSTEM opposed to every rule
of sound finance and shown by experience
to be frought with the gravest peril and
perplexity.
The terrible civil war which shook the
foundation 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 enlargement of brethren. These are
now past and forgotten. Even the dis
tressing loss Of life the conflict entailed
is but a sacred memory, which FOSTERS
patriotic sentiment and keeps alive a
tender regard for those who nobly died.
And yet, there remains with us today,
as an incident of that tremendous strug
gle. a feature of its financial necessities,
not only unsuited to our present circum-
stances, but nlanifestly disturbing men
ace to business security and an ever pres
ent agent of monetary distress.
THE ENDLESS CHAIN.
Because we may be enjoying a temper
airy relief from its depressing influence
this should not lull us into a false securi-
ty, nor lead us to forget the suddenness
of the last vsitations I am more con-
WINGED than ever that we can have no
assured financial peace and safety until
the government currency obligations up
on 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treasury, are withdrawn from circulation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 term bonds bearing
a low rate of interest, or by their redemp-
ton 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 is
sued in payment of silver purchases un-
der the act of July IA, 1890, now paid in
gold when demanded would not create
much disturbance as 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 certainly
appears to be the most effective and di-
rect path to the needed reform.
In default of this, however, 1T would
be a step in the direction of currency OBJ
legations in gold and whenever so re
deemed they should be cancelled instead
of being reissued.- This operation would
be a slow remedy but it would improve
present conditions.
BANK CIRCULATION.
National banks should redeem their
own notes. They should be allowed to
issue circulation to the par value of bonds
deposited as security for its redemption
and the tax on their circulation should pc
reduced to one-fourth of ! per cent. In
considering the projects for the retire
ment of United States notes and treasury
notes issued under the law of $780, am
of the opinion that we have placed too
much stress upon the danger or contract
ing the currency, and have calculated too
little upon the gold that would be added
to our circulation If invited to us by bet
ter and safer financial methods. 1t is not
| so much a contraction of the currency
! that should be avoided as its unequal dis
| tribution.
This might be obviated, and any fear
| of harmful contraction at the same time
| removed by allowing the organization OF
| smaller banks and in less populous COM
| munitieS than are now permitted, ana al
| SO authorizing existing banks to estab-
| lish branches in small communities I'M
| der proper restrictions.
| 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 ADAM
| dons the banking business and the &C
emulation of funds, and confines It's
! monetary operations to the receipt of the
money contributed by the people Tor It's
| support and to the expenditure or such
| money for the peoples benefit.
orr business interests and all good citi-
| zens long for rest from the feverish
| agitation and the Inauguration by the
| government of a reformed financial poll
| cy, which will encourage enterprise ana
make certain the rewards OF labor.
TRUSTS.
Another topic in which our people
| here briefly considered. l refer to the
| existence of trusts and other huge ag-
gregations of capital, the object OF winch
| is to secure the monopoly OF some par
| ticular branch of trade, industry or COM
merce and to stifie wholeS ome competi-
ton When these are defended 1t IS
usually on the ground that though they
increase profits they also reduce prices
and thus may be nearest the puDllc. IL
must be remembered, however, that re-
af ri In
of the real objects of these organizations
nor is their tendency necessarily in that
direction. If 1t occurs in particular
case, it is only because 1T accords with
the purposes OF the interests OF tnose
managing the scheme. Such occasional
results fall far short of compromising the
palpable evils charged 10 the accounts
of trusts and monopolies.
Their tendency is to crush out individu-
| al independence and to hinder or prevent
the free use of5auman faculties and the
full development of human character
Through them the farmer, the artisan
and the small trader Is in danger of dis
Judgment from the proud position or De-
ing 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 advantages of bust
ness of which he is factor, to be rele-
gated to the level of mere appearance
fo n great machine, with little free will
with no duty but that of passive obedi-
ence and with little hope or opportunity
| of rising in the scale of responsible and
helpful citizenship.
| To the instructive belief that such is
| the enevitable trend of trusts and mo-
| nopolies is due the widespread and deep
seated popular aversion in which they
| are held and the not unreasonable in
| sistence that whatever may be their in
| cidental economic advantages their gen.
eral effect upon personal character, pros
poets and usefulness can not be other
wise than injurious.
Though congress has attempted to deal
with this matter by legislation, the laws
passed thus far for that purpose have
| proved ineffective, not because of any
lack of disposition or attempt to en-
force Them but simply because the laws
themselves as interpreted by the courts
do not reach the difficulty. If the ineffi-
ciencies in the existing laws can be rem
edled by further legislation 1T should be
DONE The fact must be recognized, how
ever, that all federal legislation on this
subject may fall short of its purpose be-
cause of inherent obstacles and also be-
cause of the complex character of our
government system which, while max
| ing the federal authority. supreme with