The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1896-12-19

the prompt reform of a system opposed to
every principle of sound finance and shown
by experience TO be flHught with the gray.
est 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 our conntry's sub
stance and the cstrangemcnr OF brethren.
These are now past and forgotten. Even
the distressing loss OF life and conflict en-
tailed Is but sacred memory. which los
tiers patriotic sentiment and keeps awe
tender regard for those vino noDly aleo'
And yet there remains with us to-day. III
full strength and activity. as an incideh.
of that tremendous struggle, feature OF
its financial necessities not only unSnitea
to our present. circumstances, bur manlfcs'-
~ Disturbing menace TO business secnrit!
and an cver-l,rcsent agent or monetary us
trcSs. Because we may be enjoying Il te'n-
porary relief from it's depressing influence
this should not lull us into false security,
nor lead us to forget the suddcnncss OF past
viStations.
l am more convinced than ever that we
can have no assured financial peace ana
safety until the government currency ONT
cations llpOn which gold may be dtnlahdeu
from the treasury are withdrawn from CIT
cuation and cancelled. This might be DONE
as has been heretofore recommended. ny
their exchange for longterm bonds bearing
a low rate of interest or by their redemption
with the proceeds of such bonds. EVEN II
only the United States notes, known rs
greenbacks, were thus retired, 1t Is proDaDle
that the treasury notes issued In payment
OF silver purchases under the act OF July
IA, 1SEp, now paid in gold when demanded,
would not create much disturbance, as they
might from time to time when received Ill
the treasury by redemption in gold or other
Il tlp. .V,1
by silver coin.
This Elan Of issuing bonds for the purpose
of redemption certainly appears to be the
most effective and direct path to the needeu
reform.
In defaul TOT this. however. 1t would DC
a step in the right direction II currency op-
legations rrdecmable in gold. whenever so
redeemed should be cancelled instead OF pe-
ing rcissued. This operation would be q
slow remedy, but it would improve present
conditions
National banks should redeem their own
notes. They should be allowed to issue CIR
culation to the par value of bonds depos-
tied as security for its redemption. ana the
tax on their circulation should be reduced
to one-fourth of l per cent.
In considering projects for the retirement
Of United States notes and treasury notes
issued under the law Of 1890. am of the
opinion that we have placed too much stress
upon the danger of contracting the cur
rency and have calculated too little upon
the gold that would be added to our cir
culation If invited to us by better and safer
financial methods. 1t is not so much CON
traction of our currency that should be
avoided rs its unequal distribution. This
might be obviated, and any fear OF harm
full contraction at the same time avoided,
by allowing the organization of smaller
banks and in less populous communities
than -are now permitted, an! also author
izIng existing banks TO establish branches
In small communities under proper restric-
tons.
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 business
and the accumulation of funds and confines
it's monetary operations TO the receipt OF
the money contributed by the people for Its
support, and to the expenditure OF such
money for the peoples benefit.
Our business interests and all good clti-
zcns long for rest from agitation and the
inauguration by the government Of re-
formed financial policy which will encour-
age enterprise and make certain the re-
wards of labor and industry.