The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1896-04-17
MATTERS OF CURRENCY REFORM

MATTERS OF CURRENCY REFORM.
There are a number of schemes
brought forth for a reform of our cur
rency system, some few OF which
might prove most admirable were
they put into operation, while the ma
jority are wholly impractical and
worthless. Among the many plans put
forth is one by Mr.. w. d. Kenyon,
bank examiner, in this state. it being
set forth in little pamphlet he has
written: ga study in Finance" The
Rock County Herald in reviewing it,
gives it's principle points as follows:
The relief of the national treasury
of the necessity of issuing bonds to
maintain or replenish the gold reserve;
a wider or more extensive use OF the
silver coinage of the country; more
elastic currency, acceptable to both
debtor and creditor; and an adequate
| increase Of legitimate circulation to
meet the needs Of a growing popula-
tion. He proposes that the greenback
| be eliminated as factor in the Ordl-
nary business transactions of the cOun-
try, by making such currency sub
sisting debt, drawing interest, thus
| tending to throw such currency into
the cash reserves of the banks. He
next advocates the removal OF the
statutory ban upon silver and the
adoption of provision that the secre-
tary of the treasury may use both
metals equally, at his discretion, in
the payment of claims. To secure a
more elastic currency, he favors an in.
crease issue by national banks of a
certain per cent of their capital, with
safety fund" provision and graded
tax on the Increased circulation. FL
nally, he proposes the adoption OF the
late Secretary WINDOWS very sensi-
BILE plan for the further use of silver,
by authorizing the secretary of the
treasury to purchase silver at bullion
rates in the market, and issue certlt-
Gates against such bullion to the
amount of it's cost, which certificates
should be redeemable in silver bullion
at it's market value on the date OF re-
demption.
There is but little doubt that this
scheme would prove far superior to
the present patched up system which
is largely result of compromises. 1t
would effect the retirement of the
greenbacks, which under the present
system in vogue, whereby they are to
be Immediately reissued upon redemp-
tion, form the great disturbing ele-
ment in our financial system. But
just how he would secure more eX-
tensive use of silver coins is prob
lem. Anyone can have silver from
the treasury now if he wants it in pay
ment for obligations. But no one
wants it if he can get it's paper rep
resentative. Various schemes have
been tried to keep large amount of
silver in actual circulation, but all
have failed. Experience has proven
that only about 100000 silver dol
lars can be kept out among the peo-
pie, and when any considerable sum
over this amount have been put out,
they have soon found their way back
to the treasury to be exchanged for
certificates. 1t will be noticed that
Mr.. Kenyon includes in his scheme
the idea put forth by the late Secre-
tarY Window, for the further use of
silver. The Window plan, while it
did not meet with general favor
among financiers at the time, has of
late been endorsed by some of the
best fnanciers of the country, men
who are opposed to free silver coinage
by this country alone as the only safe
plan by which more extended use of
silver could be entered upon. Whether
in the present condition of affairs it
could be successfully inaugurated and
maintained is question, but there is
little doubt had it been adopted in
1880 instead of the so-called Sherman
law, much or all of the trouble that
resulted from the purchase clause of
that law, would have been avoided.
There is do doubt, however, that if
there is any way by which consider
ably larger amount of silver could be
used in Cur volume of circulation, eX-
cept through international agreement,
without endangering our finances, the
Window plan is the one.
=
THERE is room for vast civlliZing
power in Russia. 1t has population