The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1894-12-12
He Believes It Would Give The De-
sired FIexiblIity, Benefit the
People, The Banks and
the U. s. Treasury.
The Present Financial System And
lis Defects As Shown BY
Experience.
PARITY OF GOLD AND SILVER.

SO long as there are in circulation, un-
der the authority Of the Government,
two coins unequal in value, but equal in
legal tender qualities, every considera-
ton Of good faith and sound policy re-
quires the prompt redemption OF the
notes on presentation in the kind OF coin
demanded by the holder, and the con-
slant observance OF such administrative
methods as may be necessary to preserve
the purchasing power Of the less valuable
metal. This is essential to the continu-
ed circulation Of our standard silver dol
las and their paper representatives at
par, and to abandon this policy without
substituting better one in its place
would not only fail TO cure many of the
the evils now existing, but would entail
upon the people of the country addition
al and greater ones.
This situation is the necessary result
OF three features OF our currency legisla-
ton, and il can not be permanently
avoided, or even temporarily improved,
without material changes in our laws re-
lating to that subject. These features
are: First, the circulation of United
States notes as currency and their current
redemption in coin on demand, second,
the compulsory. reissue OF such notes
after redemption; third, the excessive ac-
emulation and coinage OF silver and the
issue OF notes and certificates against it
upon ratio which greatly overvalues
that metal as compared with the stand
ard unit OF value in this, as in other prin-
cipal commercial countries. Frequent
issues of bonds for the purpose OF pro-
Gu ing gold, which can not be kept after
it has been obtained, will certainly cause
increased distrust among our own people
as well as among the people Of other
countries, and not only swell the volume
of our securities returning from abroad
for sale or redemption, but increase the
withdrawal Of foreign capital heretofore
invested in our domestic enterprises.
Ordinarily when there is no distrust
OF our currency or other discouraging in
fiuence, considerable part Of the inter-
est and dividends earned by foreign cap
ital in this country is annually or semi
ANNUALLY reinvested here, and this to-
gether with the fact that under normal
conditions the balance OF trade is in our
favor, enables our people to meet their
obligations abroad without reducing their
stock OF money at home. But when dis
trust arises either as to our ability to pay
or as to the value OF the money with
which we intend to pay, the foreign cap
italist not only ceases TO reinvest, but
proceeds to withdraw all his money by
disposiDg OF his American securities in
order-to protect both capital and income
against threatened depreciation.
There are but two ways in which this
withdrawal can be affected, one tor our
people to export and sell their commodi-
ties in foreign markets to a sufficient
amount to create balance OF credit in
their favor, the amount to be withdrawn,
and the other is to ship gold, that being
the only money recognized in the settle
ment OF international balances.
But, independently OF these considera-
tons, our own people have clear right
to demand a sound and stable currency
for use in the transaction of their bust
ness at home, while their purely COM
mercial relations with the people OF other
countries, upon whom the producer OF
exported commodities are compelled TO
rely for the consumption Of their surplus,
can not be proftably maintained unless
they are always in a condition to pay for
what they buy in as good money as they
receive for what they sell We can not
therefore, preserve our trade relations
with best customers for our surplus prod
ucts unless we maintain monetary sys-
tenn substantially in accord with theirs
and until they manifest opposition to
cooperate with US in efecting change
upon terms just and fair to all our inter
ests. We ought to continue our adhesion
TO the gold standard Of value, with as
large use Of silver as is consistent with
the strict maintenance Of that policy.
Since the resumption OF specie pays.
meut on the first day Of January, 1879.
United States legal tender notes and
Treasury notes issued under the act OF
July IA, 1890, have been redeemed in
gold 10 the amount Of $500. 600, 900, and
eli tha notes an rodaamed hava bean re-