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

current revenues. ID not at all 70 30
iikened to a man living beyond hls In.
come and thus mourning debt o. en-
It is not one 6f the functions Of oYr
government to accumulate and mako
additions to fund not needed Tor I'M.
mediate expenditure. With individuals
it is the chief object Of struggle ana
lated fund by the government to the
payment of its running expenses 10
duty. . - y
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 pointed out. Without now re-
peating these details, cannot refrain
necessity Of the prompt reform OF g
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 arrangement
Of brethren. These are now past ana
forgotten. Even the distressing loss OF
life the conflict entailed Is but q 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
&l,,lk NJ
'emendOus struggle, a feature OK ITS
.ancial necessities, not only unsuited
to our present circumstances, but mani
testify a disturbing menace to business
security and an ever-present agent OF
monetary distress.
Because we may be enjoying tenn
porary relief from its depressing in
1luence, this should not lull us into
false security nor lead us to forget the
suddenness Of past visitations.
1 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 withdrawn from circulation and can
! cellcd. 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
it Is proba bic that the treasury notes is
sued In payment of silver purchases
| Under the act Of July IA, 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
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 step in the right direction If cur
| rency obligations redeemable in gold.
| whenever SO redeemed, should be can
| celled 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 circnlat ton to the par value OF
bonds deposited as security for Its re-
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;-enlcnt 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 currency and
have calculated too little upon the gold
that would be added to our circulation
II invited to US by letter and safer
financial methods. 1t Is not so much
contraction Of our currency that
should be avoided as it's unequal dis
tribution. ., r..
This might be obvIated and any fear
| Of harmful contraction at the same
time removed, by allowing the organi-
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
| rightfully take deep interest may
here be briefly considered: ] refer to
the existence Of trusts and other huge
aggregations Of capital, the object OF
which is to secure the monopoly OF
some particular branch Of trade. In
dustry or commerce, and SO stine
| wholesome competition.----NVh these
! are defended 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 organizations, nor Is their
tendency necessarily in that direction.
| 1t it occurs in particular case IT. is
only because 1T accords with the pur-
pose 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 relegated to
the level OF mere appurtenance to q
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.
TO the instructive belief that such Il
the inevitable trend OF trusts and mo.
ncpolies Is due the widespread and
deep-seated popular aversion in which
they are held and the not unreasonable
insistence, that whatever may be thei,
Incidental economic advantages, theil
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 thu
laws passed for that purpose thus IA
have. proved ineffective, not because @
any lack Of disposition or attempt t.
enforce them, but simply because tn
laws themselves as interpreted by tn
courts do not reach the difficulty.
the insuf7iciencies Of existing laws ca,
be relnedied by further legislation i
should be done. The fact must be rec