The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1897-12-08

islation II had and the policy Of selling
bonds ID to be continued. then congress
should give the secretary OF the treas
ury authority to sell bonds at long or
short periods bearing less rate OF In
terest than Is now authorized by law.
i earnestly recommend. as soon as
the receipts OF the government are quite
sufficient 10 pay all the expenses or the
government, that when any OF the Unit
ed States notes are presented Tor re-
demption In gold and are redeemed In
gold such notes shall be kept and set
apart, and only paid out In exchange
Cor gold. This is an obvious duty. III
the holder OF the United States note
prefers the gold and gets IL from the
government he should not receive back
from a United States note without pay
Ing gold In exchange for II. The reason
for this is made all the more apparent
when the government issues an inter-
est-bearing debt TO provide gold for the
redemption OF United States notes-a
non-interest bearing debt. Surely III
should not pay them out again except
on demand and for gold. III they are
put out In any other way they may re-
turn again to he followed by another
bond issue To redeem them-another In
terest-bearing debt 10 redeem non
interest bearing debt.
In my view IL is OF the utmost I'm
portance that the government should
be relieved from the burden OF
providing all the gold required
for exchanges and export. This
responsibility is alone borne by the
government without any OF the usual
and necessary banking powers to help
itself. The banks do not feel the strain
OF gold redemption. The whole strain
rests upon the government, and the
size OF the gold reserve in the treas
ury has come to be, with or without
cipnaI Of danger of
curity. This ought to be stopped. If
we are to have an era OF prosperity in
the country with sufficient receipts for
the expenses Of the government we may
feel no immediate embarrassment from
our present currency; but the danger
still exists, and will be ever present
menacing us so long as the existing
system continues. And besides, ii is
in times OF adequate revenues and bus
mess tranquility that the government
should prepare for the worst. We can
not avoid without serious consequence
the wise consideration and prompt solu-
ton of this question.
The secretary of the treasury has
outlined a plan in great detail for the
purpose OF removing the threatened
recurrence of a depleted gold reserve
and save us from future embarrassment
on that account. To this plan i invite
your careful consideration. l concur
with the secretary of the treasury in
his recommendation that national
banks be allowed to issue notes to the
fact value of the bonds which they have
deposited for circulation, and that the
tax on circulating notes secured by de-
posit of such bonds be reduced to one
half Of / per cent. per annum. / also
Join him in recommending that authority
be given for the establishment of ma
tional banks with a minimum capital OF
S25 900. This will enable the smaller viii
lagos and agricultural regions of the
country to be supplied with currency
to meet their needs
I recommend that the issue of nation
al bank notes be restricted to the de-
nomination Of $40 and upwards. IL the
suggestions / have herein made shall
have the approval Of congress. then i
would recommend that national banks
be required to redeem their notes in
gold