The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1896-12-10

Y NesftInI These details, i cannot refrain from
AGAIN earnestly presenting the necessity OF
the prompt reform OF system opposed to
every principle of sound finance and shown
by experience to be fraught with the grav-
est peEll and perpleXity. The terrible civil
wa wa if5ch shook the foundations OF our
government more than thirty years aga!
brought in It's train the destruction Of
Z property The wasting of our country's SUBJ
G stance and the estrangement of brethren.
1 These are now past and forgotten. Even
the distressing loss OF life and conflict en-
! tailed Is but sacred memory, which fos-
tefs patriotic sentiment and keeps alive
tender regard for those who nobly died.
And yet there remains with us today, in
full strength and activity, as an incident
OF that tremendous struggle. a feature of
It's financial necessities not only unsuited
TO our present circumstances, but manifest
~ disturbing menace to business security
& ana an eyer-present agent of monetary dis
4 I ress Because we may be enjoying tenn
Dorary relief from its depressing influence.
this should not lull us into false security,
Y nor lead MS to forget the suddenness Of past
yisftations.
am more convinced than ever that we
ca have no assured financial peace and
sa fety until the government currency oblf-
ga lions upon which gold may be demanded
from the treasury are Withdrawn from cir
+ culation and cancelled This might be done,
rs has been heretofore recommended, by
I their exchange for long-term bonds bearing
low rate Of interest or by their redemption.
with the proceeds Of such bonds. Even lie
E only the United States notes, known as
gfeenbacI S. were thus retired. it is probable
that the treasury notes issued in payment
OF silver purchases under the act of July
Il, 1890, now paid 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 other
by. silver coin @
Tais plan Of issuing bonds for the purpose
OF redemption certainly appears to be the
most effective and direct path to the needed
reform.
In defaul tof this. however, it would be
n step in the right direction if currency OBJ
legations rcdeemable in gold, whenever so
redeemed should be cancelled instead of be-
ing reissued. This operation would be a
slow remedy, but it would improve present
conditions.
n 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, and the
tax on their circulation should be reduced
to one fourth of 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. It is not so much a con-
traction of our currency that should be
avoided as its unequal distribution. This
, , might he o5viated, and any fear Of harm
full contraction at the same time avoided.
by allowing the organization Of smaller
banks and in less populons communities
than are now permitted, and also author
izing existing banks to establish branches
in small communities under proper restric-
lions.
/ 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
its 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.
L Our business interests and all good citi-
zens 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.
T TRUSTS T..1sEN TO TAsK, $.