The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-04-03

11C4U ~ S44NO4 OG4AAOAS "4A SOAg4AAO
to be redeemed as heretofore in silver
or gold at the option of the holders;
and that if when they r presented
for redemption, or reach the treasury
in any other manner, there are in the
treasury coined silver dollars equal in
nominal value to such treasury notes,
then and in that case, the notes will be
destroyed and silver certificates to an
equal amount be substituted.
I am convinced that this scheme is
ill advised and dangerous. AS an uIti-
mate result of it's operation, Treasury
notes which are legal tender for
all debts, public and private, and
which are redeemable in gold or silver,
at the option of the holder, will be re-
placed by silver cen tiicates which,
whatever may be their character and
description, will have none of their
qualities. In anticipation of this re.
suit, and as an immediate effect, the
Treasury notes will naturally appre-
ciate in value and desirablity.
The fact that gold can be realized
upon them, and the further fact that
their destruction has been decreed
when they reach the Treasury must
tend to their withdrawal from General
circulation to be Immediately presented
for gold redemption or to be boarded
for presentation at a convenient
season. The sequel of both operations
will be a large addition to the silver
currency in u circulation, and a cor
responding reduction of gold in the
Treasury. The argument has been
made that these things will not occur
at once because a long time must elapse
before the coinage of anything but the
seigniorage can be entered upon. If
the physical effects of the execution of
the second section of this bill are not
to be realized until far in the future,
this may furnish a strong reason why
it should not be passed sc much in ad-
vance; but the postponement Of its
actual operation cannot prevent the
fear and loss of confidence and nervous
precaution which would Immediately
follow it's passage and bring about it's
worst consequences. / regard this Sec
ton of the bill as enbodying a plan by
which the government will be obliged
to pay out it's scanty store of gold for
no other purpose than to force an un-
natural addition of silver money into
the hands of our people. This is an
exact reversal of the policy which safe
finance dictates if we are to preserve
parity between gold and silver and
maintain sensible bi. metalism.
We have now outstanding o than
three hundred and thirty-eight millions
of dollars in silver certificates issued
under existing laws They are serving
the purpose of money usefully and
without question. Our gold reserve,
amounting to only a LITTLE more than
two hundred millions of dollars is
directly charged with redemption Of
three hundred and fortv-six millions of
United States notes. When it is pro.
posed to initiate our silver currency it
is a time for strengthening our gold
S e instead of depicting it. lean
not conceive OF a longer step toward
silver recommendation than we take
when we spend our gold to buy silver
certificates for circulation. especially
in view Of the practical difficulties sur
rounding the replenishment of our
gold.
This leads me to earnestly present
the desirability of granting to the
Secretary of the Treasury a better
power than now exists to issue bonds
to protect our gold reserve when for
any eason it should be necessary. Our
currency is in such a confused con
dition and our financial affairs are apt
to assume at any time SO critical a
position that it seems to me such a
course is dictated by ordinary pru-
dence.
in favor of coming the bullion seignior-
age now in the Treasury, and I believe
it could be done safely and with advan-
tage, if the Secretary of the Treasury
had the power to issue bonds at q low
rate of interest under authority in sub
stitutiOn of that now existing and bet
ter suited to the protection of the
Treasury.
I hope a way will present itself in
the near future for the adjustment of
u monetary affairs IN such a compre
hensive and conservative manne as
will accord to silver it's proper place
in u currency, but in the mean
time l am extremely solicitous that
whatever action we take on this sub
ject may be such as to prevent loss
and encouragement to our people at
home and the destruction of confidence
in our financial management abroad.
GROVER CLEVELAND.
Executive Mansion, March 20. 1894.
NEW ADVERTISEMENTS.