The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-12-12
MIR. ECKELs,s IDEA.

MIR. ECKELs's IDEA.
The report Of Comptroller Eckels, which
outlined the financial plan submitted by
Secretary Carlisle, in a general way. states
explicitly that the object of the bank note
system is to relieve the United States Of
the necessity Of redeeming paper currency
in gold. He says:
For a long time the chief source Of en-
blrrassment 10 the general government,
and the cause Of 50 great uncertainty IN
business condition Of the country, was the
continual danger threatened by the use
made Of the treasury issues and the in
ability when the revenues Of the govern
ment We're Inadequate 10 maintain, except
through bond issues. such A reserve Of gold
coin as Is required by law. The current
redemption Of the legal tender issues and
the treasury issues under the act OF 1890,
and the reissulng instead of the cancella-
ton OF the same, must always create dis
trust of the governments credit abroad
and At home 50 long as the laws now upon
the statute book remain unchanged
If the franchise is granted the banks of
Issuing circulating notes against their as
sets instead of against a bond security. it
Is suggested that the banks in return
should recompense the government by re-
Iieving the treasury department of the
current redemption in coin OF the present
treasury issues The ultimate redemption,
Of course, must fall upon the government,
but the embarrassment does not arise
from their ultimate, but from their cur
rent. redemption.
The plan Of Secretary Carlisle, while
not expressly calling attention to the de-
STABILITY Of making the banks furnish gold
that may be desired for export, attempts
practically the same thing in it's provision
for retiring United States currency to
the extent Of the issue of bank notes. The
banks alone are responsible for the re-
demption OF their notes, and If the United
States currency is retired, there can, Of
course. be no call on the United States
for any current redemption. Unquestion-
ably it would be an excellent thing IL the
national government could in some safe
way be relieved OF the embarrassment
brokers, and, therefore. the first and most
important question is whether 1t is possible
for the government in any way to escape
the responsibility Of maintaining the parity
parity must be kept in mind, for it is not
to be presumed that anyone deliberately
contemplates the establishment of a cur
rency which will not be maintained on
gold standard. Indeed, both the great po-
lltical parties are now under pledge to
maintain the parity of all dollars.
No intelligent man can fail to see that
the real source of the governments pres
ent trouble is the necessity Of maintaining
the gold standard. Its credit money is
presented for redemption. and 1t must be
redeemed In gold on demand, or specie
payments must be suspended. The only
way TO get,rid Of this situation is a retire
ment OF all the credit money, including
silver, of the government. So long as any
of the governments credit money remains
in circulation it may be presented at the
treasury for gold redemption. But If 1t
be all retired, in what will the banks re-
deem their notes? There will be nothing
left but gold. The total gold in the coun-
try, including bullion. is about $500, 600 900.
The amount Of silver is about the same.
The amount Of paper currency ts close TO
81 900 1000 1t is the object of the treas
ury to hold an amount Of gold not less
than 500 o00O 900. Hence, If the bank note
issue were sufficient to retire the United
States currency. we should have $1,000
900, 900 OF paper money to be redeemed
by the banks on demand with total stock
Of $500. 900 900 Of available gold in the coun-
try. In other words, the struggle for gold,
which Is now international would become
a domestic struggle between banks, with
the foreign pull on our gold still continu-
Ing. In such a condition banks that be-
came pressed would either have to go by
the board or withdraw their circulation
and let out United States currency to an
equal amount.
The Sentinel Is unable to see how the
national government can possibly escape
the necessity Of maintaining specie pay
ments so long as there is any paper money
in existence. This is a necessary Incident
Of the power Of issuing credit money. The
states are prohibited from making any
thing but gold and silver coin a legal ten
der for the payment Of debts. The United