The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1894-12-22
THE FINANCIAL QUESTION.


THE FINANCIAL QUESTION.
Another issue of bonds is said to be
in sight. Already the gold reserve,
notwithstanding it's recent replenish-
ment, is below the 500, 900, 900 limit.
That limit is not fixed by law, but it
has gradually come to be regarded as
about the right figure. President
Cleveland, during his first term, gave
special emphasis to this limit. 1t is,
however, matter admitting of great
elasticity. The one thing needful is to
be In position at all times to meet
run on the treasury for gold for the
redemption of greenback and treasury
notes issued under the act of 1890.
The anx,ety of the administration
to pass the Carlisle bill is due largely
to desire to be rid of the RESPONSE
bility of maintaining specie payments,
says the Ineer Ocean. With the gov
ernment legal-tendsr notes converted
into interest bearing bonds, which is
the Fundamental feature of the faan-
cial policy of the administration, the
government would need gold only for
the payment of the interest on its
bonds. The burden of keeping our
paper money on specie basis would
be shifted from the government to the
banks. The grand object in view, pri-
marily seems to be to get out from
under the load of specie payment re-
spons;bility.
The Carlisle plan is trap covered
with leaves. The bill was drawL in
such way as to conceal its real char
acier so far as possible But the trap
has two balts To the goldites it offers
national banks on strictly gold basis,
and to the silverites state banks on q
silver basis. The former is expressly
stated. The latter required no special
provision, for in providing currency
based on gold alone and another cur
rercy based on specie, without men-
tioning gold or silver, provision is
practically made flor two distinct cur
rencies. 1t would be for the interest
of the gold banks to have gold 60 to a
premium, for their bills would go up
proportionally, and as soon as there
was any premium on gold the banks
which could redeem in silver or gold,
at their own option, would use in re-
demption silver only. There is no
guess work about this
1t is true that the act of 1870 did
authorize the formation of national
banks for the purpose of issuing notes
payable in gold, but under restric-
tion which amounts to prohibition.
The amount issued must not be over
80 per cent of the par value of the
bonds deposited, instead of 80 per cent.
as in the case of ordinary bank notes.
This discrimination against gold note
is left out of the Carlisle bill, an d
practically that is just the difference
between encouraging and prohibiting.
The American people want all their
paper money redeemable ia either gold
or silver, al the option of the holder of
the s>me. That is genuine bimetall-
ism. which is the bedrock principle of
finance, which the United States de-
mands and which the Republican
party really stands for. If by false
pretenses and cunning concealment
system should be adopted which wou Id
put the two precious metals on radi-
cally different foundations, and create
two different kinds of bank notes, one
commanding premium and the other
suffering a discount, then let the De-
mocracy prepare for q rebuke IN 1896
more overwhelming than the one of
1894. The people went with free trade
in 1892 with their eyes open. The vii.
son bill was only the carrying out of
the will of the people as expressed in
1892. The people changed their
mind. as they clearly had right to
do. But the Carlisle bill is con-
fidence game, and it is dangerous basi-
ness for political party to attempt to |
hmm ko tho poopla