stem to the creation of banks in smaller communities or
by permitting banks of large capital to establish branches in such
localities as would serve the people, so regulated and restrained as
to secure their safe and conservative control and management.

But there might not be the necessity for such an addition to the
currency by new issues of bank circulation as at first glance is
indicated. If we should be relieved from maintaining a gold reserve
under conditions that constitute it the barometer of our solvency, and
if our Treasury should no longer be the foolish purveyor of gold for
nations abroad or for speculation and hoarding by our citizens at home,
I should expect to see gold resume its natural and normal functions in
the business affairs of the country and cease to be an object attracting
the timid watch of our people and exciting their sensitive imaginations.

I do not overlook the fact that the cancellation of the Treasury notes
issued under the silver-purchasing act of 1890 would leave the Treasury
in the actual ownership of sufficient silver, including seigniorage,
to coin nearly $178,000,000 in standard dollars. It is worthy of
consideration whether this might not from time to time be converted into
dollars or fractional coin and slowly put into circulation, as in the
judgment of the Secretary of the Treasury the necessities of the country
should require.

Whatever is attempted should be entered upon fully appreciating the fact
that by careless, easy descent we have reached a dangerous depth, and
that our ascent will not be accomplished without laborious toil and
struggle. We shall be wise if we realize that we are financially ill and
that our restoration to health may require heroic treatment and
unpleasant remedies.

In the present stage of our difficulty it is not easy to understand how
the amount of our revenue receipts directly affects it. The important
question is not the quantity of money received in revenue payments, but
the kind of money we maintain and our ability to continue in sound
financial condition. We are considering the Government's holdings of
gold as related to the soundness of our money and as affecting our
national credit and monetary strength.

If our gold reserve had never been impaired; if no bonds had ever
been issued to replenish it; if there had been no fear and timidity
concerning our ability to continue gold payments; if any part of our
revenues were now paid in gold, and