Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-03-29

replaced by silver certificates, which what
ever may be their character AMI descrip-
ton, will have none of these qualities. In
anticipat ton OF this result, and as an imme-
date effect, the Treasury notes will nat
urally appreciate in value and desrability.
The fact that gold can be realized upon
them, and the further fac- that their de-
struction has been decreed when they reach
the Treasury, must tend 10 their with
drawal from general circuiati ton, to be i'm
mediately presented for gold redemption or
to be boarded for presentation at a more
convenient season. The sequel OF both op-
erations will be large addition TO the sill
Yer currency in our circulation and a cor
responding reduction OF gold in the Treas
TRY. 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 en-
tered upon. II the physical sffects Of the
execution Of the second section OF this bill
are not to be realized until far in the fu-
ture. this may furnish a strong reason why
1t should not be passed so much in advance:
but the postponement of It's actual opera
ton cannot prevent the fear and loss of
confidence and nervous precaution which
would Immediately follow its passage and
bring about Its worst consequences. / re-
gard this section of the bill as embodying
plan by which the Government will be
obliged to pay out its scanty store Of
gold for no other purpose than TO force an
unnatural addition OF silver money into the
hands of our people. This Is an exact re-
tates IL We are to preserve parity between
gold and silver and maintain sensible BIZ
metallism.
Must Strengthen the Gold Reserve.
We have now outstanding more than
s33S, OO0. 900 in silver certificates issued I'M
der existing laws. They are serving the
purpose of money usefully and without
question. Our gold reserve, amounting 10
only a little more than 1OO.OOo.OoO. is d.
rectly charged with the redemption of
Si6.O00.Ooo of United States notes. When
1t is proposed 10 iafate our silver currency
1t is time for Strengthening our gold re-
serve, instead of depicting IL. / cannot con-
ceive of a longer step toward silver mono
metallism than we take when we spend our
gold TO buy silver certificates for circula-
ton, especially in view of the practical Diff
hculties surrounding the replenishment Of
our gold.
This leads me to earnestly present the de-
slrablllty or granting to the Secretary OF
the Treasury a better power than now ex-
lists to issue bonds to protect our gold re-
serve when for any rea son IL should be
necessary. Our currency is in such con-
FUSED condition and our financial affairs
are apt to assume at any time so critical a
position that 1t seems to me such a course
Is dictated by ordinary prudence.
L am not inSedsible to the arguments in
favor of coming the bullion seigniorage
now in the treasury, and / believe il could
be done safely and with advantage, il the
Secretary OF the Treasury had the power to
issue bonds at low rate of interest under
authority In substitution of that now eN-
listing and better suited TO the protection of
the treasury.
l hope way will present itself in the
near future for the adjustment of our mon
etary affairs in such a comprehensive and
conservative manner will accord to sill
yer its proper place in cur currency; but in
the meantime / am extremely solicitous
that whatever action we take on this sub
Ject may be such as TO prevent loss and
discourageme nt 20 our people at home, and
the destruction of confidence In our finan-
cial arrangement abroad
GROVER CLEVELAND
ENecutice Mansion, March ~, 1894