St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-21
TREASURY SECKETARY'S RE
PORT.

port which we give THIS morning the
predicament IN which Tfteen years of
Republican financial legislation lands
the country, and it is picture which
should stop the mouth of Republicans
both to boasting of their ability to adj
minister the finances of nation. and to
criticism of any policy the Democrats
may propose. 1t should shame them
into silence. But it won't.
Up to 1878, under the impulse given
legislation by ex-Secretary John Nc
Culloch, the correct policy that the
treasury should not do banking busl-
ness prevailed, and the greenbacks
were being gradually retired. That
year the retirement was stopped, and
the notes were directed to he reissued
when received. This was the first step
neceSSitating the formation of the gold
reserve fund. Like all first steps it
was not dangerous in itself, but in the
precedent it established and the COM
mltment of the government perma-
nently to banking system.
As precedent it made easy the way
for the next and worse step, the Allison
silver purchase act of that year. Had
this been restricted to the buying and
coming of silver dollars and their pay
ment for government expenses, the evil
would not have been so great, but the
provision for the payment of the bull
lion in silver certificates practically re-
deemable in gold doubled the amount
of paper resting on the gold reserve,
making the amount dependent on the
SlO0,OOO,000 of gold very nearly $780,
100000. This aud the gold certificat e
law made the treasury bank of deposit
for safe keeping, sort OF safety vault
for the owners of money metals.
Then came the elimination of this
career of financial folly and idiocy in
the Sherman act. which, before the
crash came which all this legislation in
vited. had added 100000 more paper
dollars to the pile resting for basis on
the S100.000,000 of gold IN the reserve.
This is called craftsmanship, but it is
only the prohigacy of the spendthrift
squandering his substance and plling up
his L. o. IS, reckless of consequences.
Hand in hand with this was the squan-
dering of income by enormous increase
of spending and entailing debts on the
future which must be provided for.
This is the condition which confronts
the country, and is succinctIy presented
in the Secretary's report, and the ques-
ton that must be answered, now that
the day of reckoning is come, is, what
can be done, not only to meet the neces-
stiles of the future, but the i'm mediate
deficit. Eight dollars of obligations,
redeemable at the will of the holder,
for every dollar of present and imme-
date resource, with present income
short of present outgo and $500, 000,O0
worth Of unavailable assets piled uD in
the treasury vaults is the problem
which fifteen years Of imbecile legisla-
ton shifts to Democratic congress to
settle.
Every debtor in the same fix finds
borrowing his easiest way out, and we
are not surprised that the secretary
feels driven by the situation TO recon-
mend it. He is confident that if he be
given authority to issue 5000, 900 of
three per cents, payable after five
years. to add to the redemption fund,
that the mere fact that he has the
authority will suffice. and that he will
never be called On to use it. Failing
| this, he asks permission to issue $780,
100000 eXchequer bills. payable in a
! year,at per cent, to defray obligations.
We think that MIR. Atkinson offers a
better way out, unless it is the intention
of the secretary to make such use of the
eXchequer bills as Mr.. Atkinson pro-
| posed. The great strain on the treasury
| is the pension list, which will carry this
| year over S16O,0O0,OO0. The secretary
anticipates deficit Of S2S,0O0,OO0. Mr..
| Atkinson computes the amount of the
pension appropriation required to meet
arrearages of pensions, that Is the
amount due from the date of application
| to that of issue of the certificate, to be
S4S, 100000 this year. Ii this is treated
as a debt-what 1t really is and is paid
in the eXchequer bills, it will wipe out
the deficit and leave small surplus.
Such an eXpedient would be unobjec-
tionable. while 1t would relieve the adj
ministration of the odium which the
opposition would attempt, with more Oh
less success, to cast on it for increasing
the interest bearing debt in a time of
peace.