Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1897-12-11

80 +bera would be no deficit recurring the
Issuance of bonds. But II the sol4i g.
serve falls below WOOOO, now WI ~
be replenished except by selling naot 81.
bonds? Is there any other way
able under existing laws T., .hoti NO
The serious question then Is, snail -" : =
continue the policy that has Dseh p uil. So -
i'm the past--that is-when me gnu iss,e
serve reaches a point of danger ISSUE
more bonds and supply the needed golo'
ar shall we provide other means 70 PlSl
vent these recurring drains upon enS nd
reserve? If no further Ieslsla3Sioii 70 he
and the policy of selling bonds Is 10 be
continued then congress Shouiu BY Iii
secretary of the treasury authority ~ sen ~
bonds at long or short perlouS pSsit 10
less rate of interest than Is mp~ as
soon as the receipts of the 8ONeruIleL
are quite sufficient to pay all me eApg"9
es of the government, that Wheh aliS 60
the United States notes are presented ~
rademntion in gold and are rc13em,u ~
gold. such notes shall be kept anu 90.
apart and only paid out In eNehaiso 1o'
gold. ,e .ho holder
of United States notes prefers Soid ana iid
gets il from the government, ne silouI4 :
not receive back from the goVeerdtIi eroi6
a United States note without paSInS 9{Iie
in exchange for it. The reason ior lIiIS
is made all the more apparent Wnen tn Ie
government issues an interesI-peatt u us !,
debt to provide gold for the reueIIiPI t
of United states notes. 5bon i9"1 not nav
them out again except on demand alu
for gold If they are put out IN any 9tt,yl
way they may return again 10 De Loti NV,
ed by another bond issue to redeem IleII
another DEMONSTRATING debt to redeem
a non-interest bearing debt.
Strain ON the Government
In my view, 1t is of the utmost i'm
portance that the government shoulq pe
relieved from the business of providing
for All the gold required for exchanges on
export. This responsibility is alone Dotne
by the government without any OIL tHe
usual and necessary banking powers u
help itself. The banks do not leel l4e
strain of the gold redemption. me who're
strain rests upon the government ana the
size of the gold reserve in the treasury
has come to be with or without reason as,
the signal of danger or Of security. inns
ought to be stopped.
If we are to have an era of prosperity
In the country with sufficient receipts tol
the expenses of the government, we may
feel no immediate embarrassment IRON
our present currency, but the danger stu
exists and will be ever present, menac-
ing us as long as the existing system
continues. And, besides. it is in times
of adequate revenues and business tran
guilty that the government should pre-
pare for the worst. We can not avoid
without serious consequences, the wise
consideration and prompt solution or this
The secretary of the treasury has out
lined plan in great detail Tor the pur-
pose of removing threatened recurrence
of a depleted gold reserve and to save
us from future embarrassment on that
account To this plan l invite your care
full consideration.
concur with the secretary of the treas.
ury in his recommendation that national
banks be allowed to issue notes to the
face value of the bonds which they have
deposited for circulation, and that TIE
tax on circulating notes, secured by the
depOsit of such bonds, be reduced one
half of per cent per annum. also joir
him in recommending that authority be
given for the establishment of nationa
banks with a minimum capital of $4,000
This will enable the smaller villages anc
agricultural regions of the country to be
supplied with currency to meet their de
mands.
recommend that the issue, of ,nationa
bank notes be restricted to the denomin
alton of $40 and upwards. If the sugges
tions | have herein made shall have thu
approval of congress, then l would rec
ommend that national banks be required
to redeem their notes in gold.