The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-21

tries justihes the confident belief that such
a plan would be popular and successful. In
case Congress should not consider 1t adj
viSable TO authorize the Secretary to use
TOT the purpoSe OF supplying denclencies
the bonds herein suggested, l
that he BE TO execute from
time TO time. as may be necessary. the obi
cations OF the government, not exceeding in
the aggregate fifty million dollars, bearing
cent, and payable after one year from date,
and that he be permitted TO sell them at not
I bar e, hha i5e par 1a8 or 95f 6 Of PuS 81 not exp lens E tha tn
such creditors as may be willing TO re-
ceive them.
"The condition Of the treasury is such
that unless some available means are
promptly provided by law for supplying the
= sar56,sIy imnStred md neneioners and
other creditors subjected TO great delay
and inconvenience Congress alone has the
lieye the present situation and enable the
treasury to continue the punctual payment
OF all legitimate demands upon IL, and /
respectfully but earnestly urge that I'M
mediate attention be given to the subject
A LARGER RESERVE
'The necessity OF the extension OF the
power of the Secretary to procure and
maintain a larger reserve for the redemp-
ton OF United States currency must. i
think. be evident to everyone who has given
serious thought to the subject At the
date OF the resumption OF specie payments,
Jan. 1. 1879. the only form of currency. ex-
cept coin certificates, which the govern
ment was required or authorized by law to
redeem in coin on presentation was the
old legal tender notes, then and now
amounting to $346, 6S1 .0l6. and IL was con-
sidered by the Secretary OF the treasury
that q coin reserve or a hundred mllnon
dollars would constitute a sufficient basis
for the maintenance of that amount or
currency at par: The correctness OF Inls
long as there was no material increase In
the volume OF paper redeemable by the tov-
eminent, the reserve remained unlmpaired
and no serious disturbances occurred in our
monetary syStemS; but, under the act OF
July IA. 1890, additional treasury notes have
been issued to the amount OF $155, 93O, $40. OF
which there are now outstanding s153.3lS,-
2ei. thus making the direct government
e Sma;Snt is tbe sum Of So. sss. 24O. all Of
which the Secretary Of the Treasury is
now required BY law TO- redeem IN com ION on
coined under authority of law S4l9,3S2.55O in
legal tender silver. upon which certincates
500. and as Congress, in the act OF July IA,
1890. declared 1t TO be the 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 an additional rea-
son now exists for comforting upon the
Secretary unquestionable authority to pro-
vide for such contingencies as may, arise.
opinion, necessary not only that he should
be clothed with full authority to procure
and maintain an ample reserve In com, eut
20 be held and used should be made as
comprehensive as the duty imposed upon
him b. the law. The existence OF Such au-
thOr!ty in a constantly available form
would of itself inspire such confidence In
the security and stability of our currency
that its actual exercise might never be-
come necessary: but the futility or declar-
ing a specific policy and withholding means
which may become necessary Tor It's eXecu-
ton is too apparent to require 0mmen
Largely on account of apprehensions as
Hesitation then existing, to continue the
current redemption of its notes In coin anu
maintain the parity OF ,h th, two co metr1s' dune
ing the fiscal year 1893 reached, as already
stated in this report, the unpreSedente6
was withdrawn from the public treasury
by the presentation of notes for redemp-
ceding the eth day OF March. 1898. when
n change occurred In the administration or
The Treasury Department. the withdrawals
amounted to $34. $4,000 and during the eight
months which have elapsed since that time
259,650, or 81. 113.650 more than during the
preceding period of three months. The
Am s%o 9Rx OF of fp Msr gHa 1s 81 tR Ma se si 3 SO. G qio. q
s9S2. 40 in excess of the lawful reserve, put
by making exchange OF currency tor g tha
country the amount was increased to SlO7,-
l62. eS2 on the 18th Of that month.
2HE GOLD RESERVE FUND BROKEN.
NOTWITHSTANDING the most SlTehuOuS Il
forts by the department to maintain the
hundred million dollar reserve intact, the
presentation 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 to use a
part of il, and IL was reduced to $50, S2,S57;
but it was afterward increased by ex-
changes Of currency for gold so that on the
10Th day of August it had been fully re-
stored. and there was on hand S1O5;bS.2SO IN
free gold. BY Oct. 10, however, il has been
diminished by redemptions OF currency and
otherwise to the sum OF SSl5ol,3so; Wnleh
Is the lowest point Ii has ever reached. 80
long as the government continues the I'M
wise policy OF keeping it's own notes out
takes to provide for their redemption In
coin on presentation, ii Will be, In my Opin-
ion. essential for the Secretary OF the Treas
ury to possess the means. or TO have the
clear and undoubted authority to secure the
means which may from time TO time become
gencies as the one which has recently loc-
CURED in our financial affairs.
..I7nder existing legislation the Treasury
Department exercises to a larger extent
than all the other financial institutions of
the country combined; the functions OF a
government is so strong that IT may not
be necessary to maintain at all times the
shown TO be requisite in the case of ordin-
airy banking companies. still II would he
nanifeStlE lmDruQenE. 10 say The IetSl, HOI
TO adept such precautionary measures as
would enable the government, IN times or
unusual monetary disturbance, TO keep its
faith with the people who hold it's notes and
coins. by protecting them against the disas-
trous effects OF an irredeemable and de-
preciated currency.
while the laws have imposed on the
Treasury Department all the duties and re-
sponSibitties OF a bank of issue, and, to a
certain extent, the functions OF a bank or
deposit. they have not conferred on the
Secretary any part of the discretionary
powers usually possessed by the executive
heads of institutions engaged In conducting
this character OF financial business. He -
bound by mandatory or prohibitory pro-
visions i'm the statutes to do or not to do
certain things, without regard to the cir
cumstances which may exist at the time he
"a required to act, and thus he Is allowed
no opportunity TO take advantage OF
changes in the situation favorable to inter
ests of the government, to protect its inter-
ests from injury when threatened by adj
verse events or Influences. He can neither
negotiate temporary loans TO meet casual
deficiencies. Tor retire and cancel the notes
er currency for them when the revenues
nor can he resort. except to a very limited
extent. to any of the expedients which, in
his Judgment may be absolutely necessary
TO prevent Injurious disturbances of the
financial situation. These. consideration
emphasize the necessity of such legislation
as will make the department Independent
of speculative interests and operations and
enable IL to maintain the credit OF the gov
eminent upOn "A sound and secure basis