The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-01


-. !" In my Judgment the present condition of
the treasury amply justifes the enactment of
the legislation recommended one year. ago,
under which portion of the gold holdings
should be placed in trust fund, from which
greenbacks should be redeemed upon presen-
tation, but when once redeemed should not
| thereafter be paid out except for gold
The words of his recommendation in 1897
were that when any of the United States
notes are presented for redemption in gold
and are redeemed in gold. such notes shall
be kept and set apart and, only patd out in
exchange for gold. This is an obvious duty,
1t must be remembered, shoWevef that the
present condition of the revenues, finances
and credit of our government clearly indi-
| cate that there is no excuse to be found in
governmental necessities for any legislation
which would be unwise if the interests of
the community and the business community
alone were considered. If the improvement in
governmental currency could not be secured
except by radical change in bank note cur
rency, there would be ground for the concur
rent consideration of the governmental and
banking legislation. But when the improve,
ment OF governmental currency is possible
| otherwise, the chances for it should not be
| jeopardized by the refusal of the advocates
| OF bank asset currency to present their case
upon its own merits alone. At present among
those who favor system Of bank notes Sc
cured by the commercial assets of banks
there does not seem to be that definite agree
| ment upon and acceptance of terms which
! Will enable any of these plans to receive
| even the united support of those who believe
in the practicability under our banking sys-
/ tenn of bank asset currency. Some Of the
| plans of one year ago differ from those ad-
| vocated today. The two bills having their
source in the house committee on banking
and currency differ materially from each
other and neither commands the united sup
port of that committee.
Each of these bills differs from other
| plans suggested. Evidently time must e,apse
| before even the friends of this particular
kind OF currency can be united on a meas
ure l maintain that the fundamental propo-
| sition. which under,ies all present evils pro-
4 viding for bank currency without govern
men: bonds as security namely the prefer
| ence of the noteholder over the depositor in
| bank, would work grave injustice In the
highest degree injurious to the whole COM
munity. If the preference of the assets note
holder over the deposition, provided for by
| pending plans, be decided unjust and i'm
| practicable, and an additional tax upon cir
culation be proposed to remove this injustice,
| new elements of uncertainty are introduced.
| and the question must also be discussed
| whether in new estimates of the tax upon
| UP the losses on the notes we have any right
| to assume that al or a Large proportion
of the sound banks will go into the uncovered
| note issuing business, and if only a few
| banks and weak banks only issue notes at
first. the tax on such circulation to make
up losses can be held down SO as to invite
that general participation in asset note is
suing by sound banks for purposes of profit
which would be essential to the absolute
| safely OF the notes. These and many other
| questions must be settled and rightly set
| tied before the people will consent to the
| abandonment of the present system under
| which bank notes are good as government
notes, whether but one bank all the banks
| issue notes.
GOVERNMENTAL REFORM.
| But fortunately for the country and for
| its business and commercial interests the
! discussion and settlement of all these vexed
and complicated problems need not stand in
the way Of true governmental currency re-
form as outlined in the two annual messages
OF the president of the United States In
the minds of the people of the country the
issue in 1896 was not the reformation of our
present bank note currency, but the reforma-
ton of governmental currency. l believe that
| the people and the business interests of this
country demand that whatever changes are
maze In our currency system to break the
endiess chain. and insure the safety Of the
gold standard, should. if possible, be simple
nor have they been in favor of complicated
| or radical changes. AS they desire stability
In the tariff system, SO they desire stability
in the currency system. While they want
| improvement in both when necessary they
are not in favor Of unnecessary tinkering with
either. The bank currency plans of one year
| ago have changed, but the presidents recon-
! mendatton has not changed. The bank cur
rency plans Of this year may change, but
dent will not be affected. Who is better
! qualified and who more entitled to our at
tention as interpreter of the voice of the
American people in 1896 for sound money
and the gold standard than he whom the
Ioeople chose in that great contest as their
chief magistrate?
/ ALREADY the ponderous wheels of industry
so long stilled are moving. Already work
seeks the American workingman. Already the
credits of the country. SO intimately con-
nected with the country's prosperity and yet
| so sensitive to radical currency legislation
are reviving under the influence of i'm
proved conditions and of the restored conf
4 of Let m ala or,,iS-
takes. Let us take backward steps Let
us all. whether We have this theory or that
| theory of banking currency stand at one side
for the present until the presidents recon-
mendation becomes law and the pledges of
/ the people are redeemed by this great step
| forward in governmental currency reform"