Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-12-04
|SHAW SAYSP PRESENT BANK
ING SYSTEM IS IMPERFECT

For the present, no silver certificates are
issued OF higher denomination than So. and |
nomination than So while gold certificates
alone are issued in the higher forms. AS a
consequences, the paper currency is gaining
tion has made 1t possible to provide fair
reserve of finished notes of all denomina
tions ready for Issue. and the treasury has
cy without any restrictions upon the de-
nominations paid out the kinds of mon
ey received in return.
The amount Of subsidiary coin og ts an,
ing was increased by S8,4S60l4 to $50, III,
National Banks.
'rhe number of national banks in active
operation on Oct. 81. 19o2. was 4,6Ts., with
anthorzea capital Of ess sa b9 9sa
1880 the latest reports submitted under
date o. September y show that 1 Sol have
adTdqa deposits Ss2o9s e ie nnifed
states disbursing officers s117.09I,7e9 and
1916 033. respectively. Borrowed money,
%l ny notes and n ga
or only As per cent of the capital stock.
The total resources We're s6.li3,02s,ol2. the
maximum amount , reaehed in the ,I history
were $3.50, 12T, $50.
National Debt.
1.-THE interest bearing debt outstanding
ut the close of business June 30. 1902. was
1881 o7o,340 Since then the department
Inns purchased S16.529,60O bonds for the
sinking fund for the fiscal wear 1903
Money Per Capita.
''The per capita supply of money outside
the treasury Nov. /. 1901, was S2S.72; Nov.
1, 1902, S29.3G.
Commerce.
1.-The marked characteristics of the for
eign commerce of the United States dur
ing the fiscal year ended June 30, 1902.
a - t,,.
and an increase of $50. in imports.
The total exports of the year were $l3S1.-
21a.4o1 of which 81 .355. 4s1 .S61 was of do
nestle production: the total imports were
over Imports S4TS.32s. 453. The decrease in
exports is chiefly due TO the unusual home
demand, to the shortage In the corn crop
of 1901. and to a reduction in prices of
certain great staples exported.
Unprotected Fiat.
Omitted States notes and treasury notes
have been made redeemably by law in
| gold. but the present national bank issue
which includes silver worth 80 cents. and
there are now outstanding 550.0G0.nO0 sill
YER dollars worth 30 cents each IN gold
| is therefore s565, 100000 or SCI, 900. 900
more than in 1893.
Points Out Peril.
Not only current obligation of the gov
4 eminent. but all contracts between citi-
zens.. and all bills Of exchange domestic
and foreEn payae in United sa5es
payor, except when otherwise expressly
provided in money coined on government
account and at fully 80 per cent profit to t,
worth less than 40 cents on the dollar.
| The peril involved in this condition may
be ave5 TS for tine and ness6iy for all
aster of 1898 escaped popular, though not
universal recognition, 50 long as public rev
ems exceeded expenditures, The reason
4 assigned why the eychangeability of gold
and silver should npt be established is
that II would entail SO large an obligation
that the. national credit would be endnn-
gered. This comedies the argument. hut
/ pleads the preference that the government
4 which has coined this silver and protited
thereby shall he protected REGARDLESS Of
peril to business ,r
Should be Specific.
'.The statute now provides that parity
between all forms of money shall be main
tanned. A former secretary of the treasury
expressed the opinion that somewhat
of silver in gold. IL that be the intention
| submit it would be better to EXPRESS the
same in specific terms 1t has been found
Dressly provide for the redemption thereof
In gold. | am not nnmindfu of the claim
that parity will naturally continue SO Ions
as the government accepts silver in pay
ment of revenues. II this be true. ther,
would he no danger to the government
should the two coins be made interchange
able.
Doubt Causes Crisis.
81 believe the treasury of the United
States would be in less danger with al
express provision for the exchanseablity o
gold and silver than under existing laws
all the gold needed whatever the pnrpos
for which it is demanded. and certainl,
no more would be- required for commerce
and not as much for boarding, should al
doubt us to the status of silver, be re
moved. On the contrary. If NIL forms o
money were made the equivalent of gold
more than another would vanish, and thu
danger to the treasury would be diminish
ed instead of being increased. The abilit,
Of this government to fulfil Its promise
has never been questioned. bnt doubts arts
ing from unexpressed policies have cause,
more than one Crisis.
Shift Burden to Banks.
Should it he deemed wise to provide 70
the eXchangeability of gold and silver, thel
Die in gold In this way there would b
shifted to the banks the greater burdel
of furnishing gold for domestic use ant
!, nnfavorabie balance of trade. might prov
of great advantage to the government. /
! would be manifestly unjust. as well as i
. notes in geld, SO long as legal tender silve
remains irredeemable and interchangeable
Government Should Redeem Our Obi
cations.
'.There can he no valid reason, legal
economic, or equitable why the government
should not redeem In gold all its own oh
, legations. whether they be represented Il
) paper, 100 Per cent hat. or In silver, 8
; pressly guarantees Its own issue. no obiec
! tion can appropriately be urged against re
curing banks to pay their notes in gold
. On the contrary. see many advantages t.
ID be gained. especially with respect to on
! foreign commerce. by making every obliga
tlon between the government and the peo
pie, and between individuals. payable il
money. every. dollar Of which shall be tn
equivalent of o5.S grains If standard gold
: and on which demand for this equivalen
: can be directly or Indirectly predicated
Banking System Imperfect.
"Recent events not only Justify but en-
: fo-"" the conclusion that our banking sys
, =