The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-25

connection with the feature proposed-to
issue bonds in their stead. That would
be to convert a non-interest bearing obi
cation of the government into one that
would tax the people about SO 50O,0O0 an
against the greenbacks is ill-adVised in
nu3lly for an indefinite period. That to
say the least, is entirely unnecessary; for,
when the government comes to
retire the notes, large portion
of it's gold reserve could be devoted to the
l!quidaGons; and beyond that the treas
ury could lawfully use its contributions to
the debt sinking fund to the extent of
about 100000 a year. when the reve-
nue. was restored to its former basis of
surplus income. The process of retiring
the notes must be a slow one; and the
amount of notes which could, from this
source, be gradually retired would, there
fore, 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
fourths of the greenbacks without the is
sue of dollar in bonds. Out of the re-
naming sum TO be disposed of, it is es-
timated that $2OOOO,OOO 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 hquidating the greenbacks
through issuing bonds in the way that
has been proposed the first step taken
should be for the government to do what
is possible TO improve the notes in pub
lie estimation. This could be done by
increasing the government revenue so
as to insure a surplus instead of a deficit.
as il Is this unfortunate condition which
has inspired 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 greenbacks.
after they have once been presented at
the treasury and gold demanded therefor,
excepting in exchange for gold green
backs 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
SIS. 10000 per annum; and the Bland notes
should later on be treated In a similar way,
but on a little larger scale. If the green
backs are to be retired by their conversion
into bonds. as proposed, what will the ma
tional banks have to hold as their reserves,
and for the redemption Of their notes? 1t
Is better not to be too preciptate in deal
Ing with greenbacks, excepting in some
such way as l have above suggested After
so many drastic object lessons as we have
hade during the last four years, the coun-
try wants freedom from erratic eruptions.
To suddenly substitute bonds for green
backs might cause as many panics during
McKinleys administration as we have had
during C4evelands. What we need is a
policy that will avoid issues Of bonds and
gradually bring out a sufficient increase in !
the notes OF national banks to compensate
fof any Withdrawals OF greenbacks that
may be found possible and convenient.