The Providence news. (Providence [R.I.]) 1891-1906, 1894-10-11
MORALITY AND FINANCE.


NO one has given Hon. GEORGE S
BOUTWELL, authority to speak for anyons
but himself, but his prominence as a
New Englander and his title of ex .Secre-
tary lend weight to such remarks as be
may make, and entitle them to careful
thought.
In recent magazine article he con-
cisely points out, though he does not
state that fact in words, the final cause
Oh the panic OF last year and the most
serious present danger of the treasury
namely the enormous disproportion
between the gold resources and tho
demand Liabilities of the government
Aif' BOUTWELL, is not alone in desire TO
impress this fact upon the people.
Every sound business man in the countrv
ihstinc1ively turns to the daily treasury
report In his morning paper to
READ what the gold reserve
Is. The demand gold liabilities are now
about $500, 600, 600 and the future gold
Liabilities $500, 900. 900, and, saws Mr..
BOUTWELL,, 'the Government has not
one dollar OF gold revenue which il can
command. The credit OF the Govern
ment is its only security against bank.
ruptcy" These statements are true and
IN the beginning of the better times now
at hand 1t IS worth while to consider n
remedy so that the future NAV not ba n
repetition OF the past. Mr.. boutwell,
proposes three remedies which briefly
summed up, are: That the Government
'hall retire all the silver and treasury
notes and reissue them without the
tamp this certificate is receivable for
customs, taxes and all public dues" and
hereafter receive only gold in payments
made to il.
The ex-Secretary imagines vain thing
he thinks this remedy anything more
nan temporary. The Government mav
ave the legal power to issue over its
ounters in payments money which il
'ili not receive in return payments, but
mas no moral right to do so. II
lould not create money for the use Of
10 people which it will repudiate
own transactions. Instead of
'creasing the distrust at home and I
broad, such course would add TO that !
cling by confessing that the Govern. q
ents obligations cannot be provided 4
Ithout artificial and forcible means. o
A business house whose credit bas ha-
me impaired because its lines Of ont. p
anding paper are too large, has but O,
e remedy--to curtail its obligations. n
10 true remedy for the Government e,
s In the same line. IL ought 10 re- n
ce its liabilities. It attemptod 20 o.
'enSthen the gold reserve by repeal ii
the Sherman law few months ago. 81
{ gold still was exported. IL sold af
nds and thereby got $59, 900, 600 OF gold 70
that, and with it $4,000. 900 he
IRE, had gone by the end of July. Dur Of
the last six years the excess OF m
ports over imports of gold have been te,
'rly $2S5, 100000 During the samo
lie the decrease OF gold holdings bv 10
treasury has been si40 900, 900. fir
ring this year alone the decrease in pa
dings has been over s1O3, 600 600 air
lie OF the customs receipts of
percentage OF gold for the for
ht months ending August 81 OF this an,
II mas been only ~ per cent, as ca,
npared with an average Of O., per sus
{. Tor the decade OF issO-eo. Arti- tin
Al and makeshift legislation will not tor
manently affect the credit of the fire
'ernment. Finance. to be sue iti
'iul' must have the stamp ins
integrity and unquestioned sol,
ne. The Government cannot nak. "a,
iey by It's wish any more than one >
'idusl member Of that Government g,s,