Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1896-12-11

current revenues, 10 not at al 20 10
iikaned TO q man living beyond hi0 IN.
come and thus mourning debt o. en-.
croachlng on his principal.
It Is not one Of the functions Of o3r
government to accumulate ana MAKE
additions to fund not needed for im-
mediate expenditure. With individuale
Il in the chief object Of struggle ana
effort, The application Of an accumu-
lated fund by the government 70 the
payment Of its running expenses 10
duty. +5s
Financial Liquidation Recommended
This reference to the condition and
prospects OF our revenues naturally
suggests an allusion to the weakness
and vices Of our financial methods.
They have been frequently pressed up.
on the attention Of congress IN previous
executive communications and the In
evitable danger of their continued toll
GRAFTON polluted out. Without now re-
peating these details, cannot refrain
from again earnestly presenting the
necessity Of the prompt reform OF 9
system opposed to every rule OF SOUND
finance and shown by experience to be
fraught with the gravest peril and per-
plexity. The terrible civil war which
shook the foundations Of our govern.
ment more than thirty years ago
brought in its train the destruction Of
property, the wasting OF GU coun.
try's substance, and the estrangemene
Of brethren. These are now past ana
forgotten. Even the distressing loss Ok
life the conflict entailed Is but a sacred
memory, which fosters patriotic senti-
ment 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
'emendous struggle, feature OF its
.ancial necessities, not only unsuited
to our present circumstances. ppt MANI
testify disturbing menace to business
security and an ever-present agent or
monetary distress.
Because we may be enjoying a tenn
porary relief from its depressing IN
| iluence, this should not lull us into
false security nor lead us to forget the
suddenness Of past visitations.
I am more convinced than ever that
| We can have no assured financial peace
and safety until the government cur
| rency obligations upon which gold may
| be demanded from the treasury are
withdrawn from circulation and can
celled. This might be done, as has been
| heretofore recommended by their ex-
| change for long term bonds bearing
| low rate Of interest or by their redemp-
| ton with the proceeds OF such bonds.
Even If only United States notes
\ known as greenbacks We're thus retired
| 1t Is probab BILE that the treasury notes is
| sued In payment Of silver purchases
| Under the act Of July IA, 1880, now palo
In gold when demanded would not
| create much disturbance as they might
from time to time when received IN
| the treasury by redemption In gold or
| otherwise be gradually and prudently
replaced by silver coin. This plan OK
Issuing bonds for the purpose OF re-
dcmption certainly appears to be the
most effective and direct path to the
needed reform.
In default of this, however, 1t would
be a step in the right direction II cur.
rency obligations redeemable IN gold.
| whenever 50 redeemed, should be can
cellel instead Of being reissued This
operation would be slow remedy, but
it would improve present condition.
National banks should redeem their
own notes. They should be allowed to
issue circula ton to the par value OF
bonds deposited as security for its re-
! tirement of United States notes am
demption, and the tax on their circu-
| treasury notes issued under the law
| lation should be reduced to one-fourth
| CT one per cent.
| III considering projects for the re.
| t;rsnlcnt Of United States notes and
| treasury notes issued under the law OF
| 1890, I am Of the opinion that we have
placed too much stress upon the
! danger of contracting the currency and
have calculated too little upon the gold
that would be added to our circulation
| If invited to US by letter and safer
| financial methods. 1t Is not so much
a contraction OF our currency that
should be avoided as It's unequal dis
| tribution.
This might be obviated and any fear
OF harmful contraction at the same
time removed, by allowing the organt-
| cation of smaller banks and In less
pOpulous communities than are now
permitted, and also authorizing existing
banks to establish branches in small
communities under proper restrictions.
Another topic in which our people
rightfulIy take deep interest may
here be briefly considered. ! refer to
the existence Of trusts and other huge
aggresat tons OF capital, the object OF
which is to secure the monopoly OF
some particular branch Of trade. IN
dustry or commerce, and SO stihe
wholesome comnetition..-..Avhen these
:, are defenled it IS usually on the ground
that though they increase profits they
also reduce prices, and thus may bene-
fit the public. 1t must be remembered.
however, that reduction OF prices TO
the people is not one of the real objects
OF these organizat tons, nor is their
| IeuuCllCy ACSSSSaliS IA sNe~S
It it occurs in a particular case It, is
only because 1t accords with the pur-
nose or interest Of those managing the
scheme.
Trusts Get a Roast.
Such occasional results fall far short
of compensating the palpable evils
charged to the account OF trusts and
monopolies. Their tendency Is to crush
out individual independence and to him
der or prevent he free use OF human
faculties and the full development OF
human character. Through them the
farmer, the artisan and the smalls trad
or is in danger Of dislodgment from the
proud position of being his own master.
watchful of all that touches his coun.
try's prosperity, in which he has an In
dividual lot and interested in all that
affects the advantages OF business OF
which he is q factor, to be RELOCATED to
great machine, with little free Will,
With no duty but of passive obedience,
and with little hope Of opportunity OF
rising in the scale Of responsible and
helpful citizenship.
70 the instructive belief that such Is
the inevitable trend Of trusts and mo:
ncpolies is due the widespread and
they are held and the not unreasonable
insistencc, that whatever may he theil
Incidental economic advantages, thei1
general effect upon personal character
PROSPECTS and usefulness can not be
otherwise than injurious.
Though congress has attempted t.
; deal with this matter by legislation tn,
laws passed for that purpose thus fal
have proved ineffective, not because q
any lack of disposition or attempt t.
enforce them, but simply because thu
laws themselves as interpreted by tn,
courts do not reach the difficulty. I
) the insufflciencies of existing laws cal
be remedied by further legislation /