The Denison review. [volume] (Denison, Iowa) 1867-current, 1899-02-14

now held abroad, and the interest
thereon goes to swell the export OF gold
when the balance of trade is against
US, and to decrease its Importation
when the balance is in our favor, Ger
tainly the burden of this debt will not
be increased by creating a home market
for these bonds. Better to pay The in
terest and keep it than to paw it and
lose it. We now have $25, 100000 of
public debt drawing 2per cent. This
can be multiplied many fold if the
banks are allowed to issue currency
equal to its value. This would certain
ly result in a saving to the people in
proportion as the rate of interest is de-
creased, and in addition the bonds
would be held in this country and the
| interest would remain with us. Fur
thermore, this would attract capital
into the banking business, and COM
petition would reduce the rate of inter-
est to the borrower. If the banks can
get 2 per cent interest on the bonds
and 5 per cent on the currency issued
against them, they will still be able to
pay per cent dividend. the average
for number of years. Who would get
the benefit? The borrower. Whatever
was realized from the government
would tend to reduce the rate to the
borrower; for money would be attract
ed into banking channels as long as it
would pay per cent.
The General Effect.
Note the general effect. We would
be able to refund a large share of our
national debt, perhaps all OF it, at
very low rate of interest, certainly not
to exceed 3 per cent. and this rate even
would be returned indirectly to the
source whence it came. The people
would pay the interest on the bonds, it
is true, but it would inure to their benz
eft in the reduction of interest rates,
and our currency would still rest upon
the credit of the nation, but with no
opportunity to embarrass the govern
ment in times of financial stringency.
The only disadvantage would be the
low rate of interest which depositors in
savings banks and other holders of cash
capital would be compelled to accept.
1t would have the effect OH the other
hand to encourage increased Industrial
enterprises, extension of railroad lines,
internal improvements, and the EN-
inf f "a in,
and it would assist our manufacturers
and producers, by means of cheap
money, to compete successfully with
other countries in the markets of the
world
Currency Safeguardedaeses s4t
| But it is urged that so soon as the
'sendless chain'' afforded by the green
backs and treasury notes shall be brok-
en-, silver certificates, or at least silver,
will need to be redeemed in gold and
that this will leave us in no better con
EDITION than now. Most plans, and per-
haps all thus far formulated. contain
provisions expressly safeguarding the
treasury against danger from this
source. Most of them propose the re-
tirement of all currency of denomina-
tions less than $40, except silver and
silver certificates; the retirement of all
silver certificates of larger denomina.
tons than SIS; to keep the silver certi-
| ficates. as now. redeemable i'm silver,
and to made silver redeemable in gold
This would establish our silver and sill
yer certificates firmly upon the gold
standard, and there would be no dan
ger OF the silver constituting an END
less chain' for the excess of what is
actually needed in every day transac-
tions in denominations under $40 would
be so small that no one would be able
to secure sufficient volume to be OF
any service in obtaining gold from the
treasuary. 1t must be borne in mind
that one of the primary objects of cur
rency reform IS to protect the treasury
OF the United States from any draft up
on 1T, and the necessity OF the issuance
OF bonds whenever this draft is made,
and no plan has been devised that does
not look we'll to this feature.
We hear it urged from many sources
that the friends OF currency reform are
not agreed upon a plan. That there is
a diversity of opinion as to the details
OF proposed legislation all must admit.
and yet there is suDstanti agreement
on all material matters. There is no
difference between the friends of cur
rency reform than among the friends
OF a protective tariff. Any of the bills
prepared for the purpose will establish
the gold standard, Will insure the pres
ent volume of currency against con-
traction, will relieve the treasury of the
United Stat IS from the burden OF sup
plying the gold of commerce, and will
affort cur ency secure against all con-
tingencies. Differences on matters of
detail can be easily harmonized when
ever it is attempted in good faith.
PROBABLY no one ever secured tariff
cal Il 10 -, - L..