Kansas City daily journal., 1896-12-08
FINANCIAL REFORM URGED.
Retirement of GreenbacISs the Most
Crying Need-Government Should
Quit the banking Business.

This reference to the condition and pros
poets of our revenues naturally suggestsan
allusion to the weakness and vices of our
financial methods. They have been fire.
quently pressed upon the attention of the
congress in previous executive communica-
tions, and the inevitable danger of their
continued liberation pointed out. Without
now repeating these details, cannot re-
frain from again earnestly presenting the
necessity of the prompt reform of sys-
tenn opposed to every rule of sound finance
and shown by experience to be fraught
with the gravest peril and perplexity. The
terrible 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 country's sub
stance and the estrangement of brethren.
These are now past and forgotten. Even
the distressing loss of life the conflict en-
tailed is but a sacred memory, which fos-
ters patriotic sentiment and keeps alive a
tender regard for those who nobly died
And yet there remains with us to-day in
full strength and activity, as an incident of
that tremendous struggle, d feature of its
financial necessity not only unsuited to our
present circumst tances, but manifestIy
disturbing menace to business security and
an ever present agent OIL monetary dis
tress. Because we may be enjoying a tenn
porary relief from its depressing influence
this should not lull US into false security
nor lead US TO forget the suddenuess OF
past visitation.
1 am more convinced than ever that we
can have no assured financial peace and
safety until the government currency obIi-
cations upon which gold may be demanded
from the treasury are Withdrawn from cir
culatiOn and Cancelled. This might be done,
as has been heretofore recommended, by
their exchange for long term bonds bear
ing low rate of interest, or by their re-
demption 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 u. 1890. now paid in gold when
demanded, would not create much disturb
ance, 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 pzIr-
pose OF redemption certainly appears to be
the most effective and direct path to the
needed reform. In default of this, however,
II wou.i be a step in the right direction
If currency Obligations, which are redeem
able in gold, whenever so redeemed should
operation would be q slow remedy, but It
would improve present conditions.
National banks should reieem their own
notes They should be allowed to issue cir
cUIatton to the par value of bords deposit
al as security for its redemption and the
tax or 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 uEder the new law OF 1890. 1 am of
the opinion 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 cfrcu-
latICn if invited to US by better and safer
financial methods. 1t Is not so much con-
traction of our currency that should be
AVOIDED as its unequal distrt button. This
might be obviated and fear OF harmful con
TRACTION a the same time removed by al
lowing the organization of small banks and
IN less pOpufplrs communities than ara now
permitted, and also authorizing existing
banks TO establish branches in small com
Uur.tiss under proper restrictions
The entire case may be presented by the
statement that the DAY Of sensible and
sound financial methods will not dawn upon
rs until our government abandons the
banking business and the accumulation OF
funds, and confines its monetary operations
to the receipts Of money contributed by the
people for its support. and 20 the expeudf-
tIGTe of such money for the peoples benefit
Our business interests and all good citi-
gems long for rest from feverfsh agitation.
and the inauguration by the government Of
a reformed financial policy which will en-
courage enterprise and make certain the
rewards of labor and Industry.