Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1897-10-14
OUR CURRENCY.

CAN essay, published by request
The Republican party has again been
called by the people to assume the con
troll of the affairs of the government OF
the country In the execution of thewill OF
people many and heavy response bilitles
will have to be assumed Among the
first to be discharged was the enact
ment of protective tariff to ena bic our
manufacturers to resume business and
give employment to the thousands of
working men now idle; to raise rev
enues sufficient to pay the current ex-
penses of the government and extricate
it from its present condition of bank
ruptcy.
The next thing to be done, and equal
ly important, will be to make thorough
and radical reconstruction of our II
nancial and currency system and adapt
them to the present requirements OF the
country. The present systems II they
can be called such have been the out
growth chiefly of the war. When 1t
broke out the government had little OF
either money or credit and 1T had to
adopt such expedients as it could to
meet its pressing necessities, and hence
has grown an incongruous, cumbrou5
and expensive financial and currency
system.
The country is now prepared for and
demands such changes as will place the
affairs of the nation and the people on
sound and substantial basis. Many
theories have been advanced and plans
suggested, but none of these seem to
fully meet the requirments of the stu
alton. | would suggest therefore that
the first thing to be done in this dlrec-
tion will be to repeal the law establish
ing the sub-treasury, giving 1T five
years to close up its business. This ex-
pensive and clumsy concern was created
to make offices for favorites, lock up the
money of the people when they most
needed it, disturb the business of the
country and to be q potent factor In
politics. It's day of usefulness, If 1t
ever had any, has long since passed and
it should now be replaced by something
better. The hundreds of millions of
dollars now in the treasury should be In
the hands of the people to which they
they belong, and the treasury depart
ment reduced to its legitimate business,
which is chiefly collecting and disburs-
ing the public revenue All boarding,
banking or speculating with the public
money should be discontinued, and only
money sufficient kept in the treasury to
meet current requirements.
If the sub-treasury was abolished, the
best substitute for it would be found in
an enlarged and Improved National
Banking system This is currency
system based on the capital of the people
and the credit of the government and is
probably the best yet ever devised. The
banks could do much of the business OF
the treasury with great facility and lit
tie expense to the government In solv-
ing these problems of currency and II
nances let the future as well as the pres
ent be taken into consideration. Let
Congress therefore authorize an increase
of the National Banking capital to
81, 900, 900, 600 and also authorize their
circulation to the same amount Then
authorize an issue of government bonds
to the same amount. These bonds to
bear per cent interest payable semi
annually and be redeemable 100 years
after date These bonds to be used in
funding the present obligations of the
government, and as security for Nation
al Bank circulation: the banks TO have
notes to the par value of the bonds de
posted with the government. The law
should be so changed that the taxes on
them should amount to more than the
interest on the bonds, and that capital
in banking should not pay more than
its share of taxes AS the banks would
practically pay the interest on the bonds
the country would have a sound and
abundant clr- ency, and substantially
without cost 10 tho people.
The banks should be Required TO keep
their reserve fund in standard gold and
silver coin and redeem their notes only
at their own counters and in each coin
in the same proportion. The present
plan of requiring many of the banks to
redeem their notes at distant points
should be discontinued the banks
are required to withdraw their money
from home enterprise and send 1t to
distant oenters where it is used Tor
speculation, Tho establishment Of
small banks should be encouraged in
the large towns and small cities, aEa
the whole system 80 changed as to make
it attractive to people Of small means,
and make it n great popular institu-
tion in which the people would become
interested and take a great pride. and
which would be entirely removed from
political control.
A large central bank should be estab-
lished in the city of New York with a
| capital of So, 100000 The capital 70
be contributed by the National Banks
of the country, in the proportion of five
per cent. of their capital stock. The
| increase of 10 per cent. in notes TO the
| banks over that now received would
more than supply the capital for this
| bank. and which in sense would cost
| them nothing, This bank should be
managed by a board Of 2l directors to
be divided into three classes, and serve
| three years.
The Secretary Of the Treasury should
appoint one third Of the directors, and
name a vice president and an assistant
cashier, who should have the oversight
| of the moneys of the government held
| by the bank In addition to its circula-
ton based on bonds as the other banks
| it should be authorized to issue a gold
circulation to any amount based on gold
| coin in its possossion and held for its re
demption.
This circulation would be especiall .,
| ternatiOGal business
The Secretary Of the Treasury should
be required to keep the public moneys
in this bank, and make his payments
| through it, This bank should be re
quired to make statements daily at the
close of business ana send copy to the
Secretary of the Treasury, and also be
published in the daily papers This
| statement IN addition to the chief items
of assets and liabilities should state the
amount OF gold notes in circulation, and
the gold held for their redemption; also
the amodnt of government bonds faCEiy
ed and disbursed during the day and
the balance on hands at the close of
| business
The Secretary OF the f,eaagry should
| be empowered to issue 800, 600 0J0 la
| treasury notes TO bear three per cent.
and run not longer than one year from
date Of issue. These notes 70 be used
only when there was deficiency in the
revenue, or in any sudden emergency
| when the government reuuired money