Phoenix weekly herald., 1897-12-16

1GeSlUeuI MChlnleN-S uUIeraQceS O1
 | the currency question, in his message 1 which has just been presented to Con gress. are clear. concise and simple
 so plain that every citizen may under and them. yet so complete on theil | scope that they meet all present re | quirements or what is looked uqou as
 an extremely complicated situation 1 The greenbacks which are outstand- ing are redeemable in gold. and Con ] gress. by it's declaration that it was
 the established policy of the govern ment to maintain all of it's obligations on an equality with gold placed the
 Treasury notes. issued under what is
 popularly known as the Sherman Act.
 in practically the same category It is
 because of the fact that the Treasury
 notes especially. and the United States
 notes also. under certain circumstanc-
 eS, are redeemed in gold when gold is
 demanded for them. that it has been
 possible for those desiring gold to ob-
 tain it from the Treasury by a presen-
 tatiOn of those notes. The fact that
 the Treasury is compelled under the
 law as il now exists to pay those notes
 out again in current business makes
 them what is known as the "endless
 chain since they may again and again be presented in this manner and thus the gold pumped out of the Treasury as long as it exists. The President recommends that when any of the United States notes are presented for in gold and are redeemed in gold, those notes shall be kept and set apart and not paid out again unless in exchange for gold. By this simple process of retaining in a separate fund every note of the United States which | -he Government is required to redeem | n gold. the endless chain ceases to | De endless. While the objectors may | lrge against this statement that the | 'etention of these notes instead of per | hitting them to go back into circula- ion. would in time reduce to certain .Xtent the circulating medium. this objection is met by the simple method y which national banks may increase
 heir circulation in case of need for additional circulating medium. The Presidents recommendation in this inc is that the national banks be per nittedto issue currency up to the par -alue of the bonds deposited, and that he tax upon national bank circulation which is now one per cent. per annum, 'e reduced to one halfof one per cent.
 er annum. This. it is believed, would nake the issuance of currency q sutfi- tent object to national banks to pro-
 idle an increase at least equal to the eduction resulting from the retention
 f the United States notes redeemed . ! gold, and also render the bank-nOte ystem sufficiently flexible to supply ny additional sums required by finan- ial emergencies, while the proposition ( hat national banks may be establish $ q with aminimum capital of S25. .OOO -ould distribute these banks more among the smaller villages nd agricultural communities. While le Presidents recommendations do { ot go to the extent of those of his ecretary of the Treasury in regard to le absolute retirement of these Obli- q ations, they do provide, by an ex- | ,emely simple process which would Y ot at all disturb financial affairs, or ppear likely to awaken serious hos T lities. for prevention of the recur- f ance of the troubles and dangers of l' ST Ix-Ili ..If ave not only endangered the curren- T ' system of the country, but have ac | lally compelled the creation of inter- [ indebtedness to protect it.