The daily morning journal and courier., 1894-12-04

ana safe defender Of American inter ests in the day of conflict. The an eient provision of our law denying American registry to ships built abroad and owned by Americans appears in the light of present conditions not only to be failure for good at every point but to be nearer q relic of barbarian than anything that exists under the permission of n statute of the United States. earnestly recommend itf prompt repeal. THE GOLD PROBLEM.
 During the last month the gold re. served in the treasury for the purpose of redeeming the notes Of the govern ment circulating as money in the hands of the people to become so re- duced, and its further depletion in the near future seemed so certain that in the exercise of proper care for the pub- | fc welfare 1t became necessary to re- plenish this reserve and thus maintain popular faith in the ability and deter imitation of the government to meet as agreed. its pecuniary obligations. It would have been well if in this emergency authority had existed to is- sue the bonds of the government bear ing low rate of interest and maturing within a short period; but the con- gress having failed to confer such au- thority. resort was necessarily had to the resumption act of 1875. and pur- suant to its provisions bonds were is- sued drawing interest at the rate of five per cent per annum. and maturing ten years after their issue. that being the shortest time authorized by the act. l am glad to say, however, that on the sale of these bonds the premium re- ceived separated to reduce the rate of interest to be paid by the government to less than three per cent. Nothing pear at such partie in garments most could be worse or further removed from sensible finance than the relations ex- isting between the currency the gov- ernment has issued, the gold held for It's redemption, and the means which must be resorted to for replenishing such redemption fund when impaired. Even if the claims upon this fund were confined to the obligations origin ally intended and if the redemption of these obligations meant their cancella- tion, the fund would be very small. But these obligations when received and redeemed in gold are not cancelled, but are reissued and may do duty many times by way Of drawing gold from the treasury. Thus we have an endless chain in operation constantly depicting the treasury's gold and never near a final rest. AS if. this was not bad enough, we have, by a statuary declaration, that 1t is the policy of the government to maintain the parity be- tween gold and silver, aided the force and momentum of this exhausting process added largely to the currency obligations claiming this peculiar gold redemption. Our small gold reserve Is thus subject to drain from every side. The demands that increase our danger also increase the necessity of protect ing this reserve against repletiop, and 1t is most unsatisfactory to know that the protection afforded is only a tenn porary palliation.
 It is perfectly and palpably plain that the only way under present con-
 
 dangerously repleted can be depleted, through the issue and sale of the bonds of the government for gold; and yet congress has not only thus far declined to authorize the issue of bonds best suited for such 8 purpose, but there seems a disposition in some quarters to deny both the necessity and power for the issue of bonds at all I cannot for & moment believe that any of our citizens are deliberately will ling that their government should de fault fin It's pecuniary obligations or that It's financial operations should be reduced to a silver basis. At any rate should not feel that my duty was done if omitted any effort could make to avert such a calamity. As long there fore as no provision Is made for the final redemption or the putting aside of the currency obligation now used to repeatedly and constantly draw from the government its gold, and as long as no better authority for bond issues is allowed than at present exists such au- thority will be used whenever and as often as 1t becomes necessary to main- tain sufficient gold reserve, and in abundant time to save the credit of our and make good the financial I of our government,
 THE CURRENCY. Questions relating to our banks and l currency are closely connected with \ the subject just referred to and they l also present some unsatisfactory fea- lures. Prominent among them are the lack of elasticity in our currency circu- ation and its frequent concentration In financial centers when it Is most l needed in other parts of the country.