St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-21
expenses to such cred tors as may be
willing to receive them.
THE DEFICIENCY
Must Be PromDtlv Provided Fo,

Must Be Promptly Provided For.
The condition of the treasury is such
that unless some available means are
promptly provided by law for supplying
the growing deficiency the public serv-
ice will be seriously impaired and pen
sioners and other creditors subjected to
great delay and inconvenience. Con-
gress alone has the power to adopt such
measures as will relieve the present
situation and enable the treasury to
continue the punctual payment or all
legitimate demands upon it, and l re-
spectfully, but earnestly, urge that i'm
mediate attention be given to the sub
ject. The necessity OF the extension of
the power of the secretary to procure
and maintain a larger reserve for the
redemption of United States currency
must, l think, be evident to every one
who has given serious thought to
the subject. At the date of the resuinp-
ton of specie payments, Jan. l, 1879. the
only form of currency, except coin GER
tihcates, which the government was re-
quired or authorized by law to redeem
in coin on presentation, was the old
legal tender notes, then and now
amounting to 1916, 6Sl ,016, and it was
considered by the secretary Of the treas
ury that a coin reserve of buDdred
million dollars would constitute suffi-
cient basis for the maintenance of that
amount of currency at par. The correct
ness of this conclusion waS'Shown by
the fact that, so long as there was no
material increase i'll the volume OF paper
redeemable by the government, the re-
serve remained unimpaired and no Seri
Gus disturbances occurred i'll our moll-
etary system; but under the act
of July IA, 1890. additional treas
ury notes have been issued
to the amount of Sl55, $50, $40, of which
there are now outstanding Sl53 31S.224,
thus making the direct government OBJ
legations in United States currency
amount 10 the sum of S499, 999, 24O, ali of
which thessecretary of the treasury is
now required by law TO redeem in coin
on presentation. Besides this, there
have been coined under authority of
law S419, 49,, $50 in legal tender silver,
upon Which certificates have been issued
to the amount of 1884. l3S, 504, and as
congress, in the act of July IA, 1899, de-
clared it to be "lhe established policy of
the United States to maintain the
TWO METALS ON A PARITY
with each other upon the present legal
ratio, or such ratio as may be provided
by law" all additional reason now eX-
isis for comforting upon the secretary
unquestiOnable authority to provide for
such contingencies as may arise. Under
these circumstances it is, in my opinion.
necessary not only that he should be
clothed with tull authority to procure
and maintain all ample reserve in coin.
but that the purposes for which such
reserve is to be held and used should be
made as comprehensive as the duty i'm
posed upon him by the law. The exist
en1e of such authority i'll constantly
available form would of itself inspire
such confidence I'D the security and
stability OF our currency that its actual
exercise might never become necessary;
but the tutility of declaring spe-
cific policy and withholding the
means which may become necessary
for its execution is too apparent to
require comment. Largely on account
of approximations as to the ability of the
government under the legislation then
existing to continue the current redemp-
ton OF its notes in coin and maintain
the parity of the two metals, the ship |
ments of gold from this country during
the fiscal year 1898 reached, as already
stated in this report, the unprecedented
amount of $685. ,S44, nearly all of
which was withdrawn from the public |
treasury by the presentation of notes
for redemption. During the three |
months next preceding the 7tn day of |
March, 1893, when a change occurred in |
the administration of the treasury de- |
partment, the Withdrawals of gold from |
the treasury for export amounted to |
S34, l46, 600, and during the eight months |
which have elaDSed since that time such |
Withdrawals have amounted to $50, 259,- |
$50, or 81, lI3.650 more than during the |
preceding period of three months.
The amount of free gold i'll the treas !
ury on the 9TH day of March, 1898, was |
500, 9S2.410, or 1882, 40 in excess of the
lawful reserve; but, by making eX-
change of currency for gold with the
banks i'll different parts of the country, |
the amount was increased to Sl07, 462,-
6S2 OH the 25th of that month. Not
WithStanding the most strenuous efforts |
by the departments to maintain the |
500, 600, 600 reserve intact, the preSenta- |
lion of notes for redemption to procure |
gold for shipment abroad continued to |
such an extent that on the I'd day of |
April, for the first time since the fund |
was established. it became necessary 10 |
use part of it, and it was reduced to |
S95. 4332 ,357; but it was afterwards in
creased by exchanges of currency for |
gold, SO that Oh the 10th day OF August |
it had been fully restored. and there |
was on hand SOB. 6S3, 290 in free gold. |
BY Oct. 49, however, it had been dimin |
lshed by redemptlOnS of currency and |
otherwise TO the sum of SS1, 55l, $50, |
which is the lowest point it has ever |
reached.