The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1897-01-29

to lend them large amounts of capital,
to defer payment of so millions of gold
which it is within our power to draw
hither, and to thus afford great relief
to very stringent condition of the
European money markets,
exhibiting potency in international
finance which we have never hereto
fore possessed. These are facts which
must tell for something in the future
foreign status Of American credit"
The Official statement of our foreign
trade for 1896, he says, is surprise
for Wall street, and the excess of ex-
ports over imports amounting to
1875, 100000 he holds to be a move
ment unparalleled in the history of our
commerce. Regarding the agitation
for the retirement OF the gIeenback,
Mr.Clews says:
The agitation against the green
backs is lll-adviSed in connection with
the feature proposed issue bonds
in their stead. That would be to con-
vert a nOn-1nterest bearing obligation
OF the Government into one that
would tax the people about $40, 500, 900
annually for an indefinite period
That to say the least, is entirely I'M
necessary; for, when the Government
comes to retire the notes, a large por-
tion of its gold reserve could be de-
voted to the liquidations; and beyond
that the Treasury could lawfully use
it's contributions TO the Debt Sinking
Fund to the extent of about forty mill
lions year, when the revenue was
restored to it's former basis of surplus
income. The process of retiring the
must be a slow one; and the amount
of notes which could, from this source,
be gradually retired would therefore
be quite important and might amount
to $500, 100000 within say five years.
This, with the Treasury gold to be
used in the redemptiOns, might easily
dispose of three-fOurGhs of the green
backs without the issue of dollar in
bonds. Out of the remaining sum to
be disposed of, it is estimated that
100000, 5000 should be deducted for
notes lost and destroyed in various
ways. 1t is thus seen that the
amount of bonds needed to retire the
notes could be made, at most, but
nominal.
Instead of liquidating the green
backs through issuing bonds in the
way that has been proposed, the first
step taken should be for the govern
ment to do what is possible to improve
the notes in public estimation. This
could he done by increasing tie gov
. To
plus instead Of d dehcit, as it is this
unfortunate condition which has in
Spired the feeling with many that
'greenbacks must be got rid OF at any
cost" If congress will provide ample
revenue for the government and pass
an act debarring the reissue of green
backs, after they have once been pre-
sented at the treasury and gold de-
manded therefor, excepting in ex-
change for gold, greenbacks would
then be regarded all over the world as
being good as gold The notes that
the government should first take up
are those issued under the Sherman
law, replacing them by silver coin as
fast as the country can safely absorb
the silver. This should be limited to
about S25, 200, 600 per annum; and the
Bland notes should later on be treated
in similar way, but on little larger
scale. If the greenbacks are to be re-
tired by their conversion into bonds,
as proposed, what will the national
banks have to hold as their reserves,
and for the redemption of their notes?
1t is better not to be too precipitate
in dealing with the greenbacks, eX-
cepting in some such way as L have
above suggested. After so many
drastic object lessons as we have had
during the last four years, the country
wants freedom from cratic eruptions.