Daily Kennebec journal., 1894-12-04

Nothing could Dc worse or lurtnef re-
moved from sensible finance than the rcla
lions existing between the currency the
government has issued, the gold held for
its redemption and the means which must
be resOrted to for the purpose of rcplcnish-
ing such redemption fund when impaired.
Even if the claims upon this fund were
confined to the obligations originally in
tended and if the redemption of these obli-
cations meant their cancellation, the
fund would be very small, but these obli-
cations when received and redeemed in
gold are not cancelled but are reissUed and
may do duty many times by way of draw
ing gold from the treasury. Thus we
have an endless chain in operation. con-
stantly depicting the trcasury's gold, and
never near IL final rest. As if this was
not bad enough we have by statutory
declaration that it is the policy of the
government to maintain the parity be
tween gold and silver, aided the force and
momentum of the exhausting process and
added largely to the currency obligation
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 nee
essity of protecting this reserve against
depletion, and it is most unsatisfactory to
know that the protection afforded is only
a temporary palliation. 1t is perfectly
and palpably plain that the only way un-
der present conditions by which this re-
serve when dangerously depleted can be
replenished is through the issue and sale
of the bonds of the government for gold :;
and vet Congress has not thus far declined
to authorize the issue of bonds best suited
for such purpose; but there seems dis
position in some quarters to deny both
the necessity and power for the issue of
bonds at ALL cannot for moment be-
ieve that any of the our citizens are de-.
libcrately willing that their government
should default in its pecuniary obligations
or that its financial operations should be
reduced to silver basis. At any rate l
should not feel that my duty was done II
omitted any effort could make to avoid
such calamity. AS long, therefore as no
provision is made for the final redemption
of or the putting aside of the currency obli-
CATION now used to repeatedly and con-
stantly draw from the government its
gold and as long as no better authority
for bond issues is allowed than at present
,xists sucl, authority will be utilized
AIRY to maintain u sufficient gold reserve
md i'm abundant time to save the credit
of our country and make good the finan
cial declarations of our government
Questions relating to our banks and
currency are closely connected with the
subject Just referred to, and they also pre-
sent some unsatisfactory features.
Pr, minent among them are the
Lack Of Elasticity
in our currency circulation and its fire.
qu mt concentration in financial eenters
when it is most needed In other parts If
tha country.
The absolute enforcement Of the govern
ment from the business of banking Is the
ideal relationship of the government to
the circulation of the currency Of the
country. This condition cannot bc i'm
mediatcly reached. but as II step in that
direction and as means of securing more
elastic currency and obviating other OBJ
iections as to the present arrangement of
hank circulation, the secretary Of the
treasury presents in his report d scheme
for modifying the present banking laws
and providing for the issue Of circulating
notes by state banks free from taxation
under certain limitations. The secretary
Explains his plan so plainly and its advaD-
ages arc developed by him with such re-
niarkablc clcarncss that any effort on my
mrt to present amendment in its support
would be superfiuous. ! content myself
with an unqualified endorsement Of the
'ecrctary's proposed changes in the law
nd brief and imperfect statement Of the
ndependen. feature.