The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-12-05

ing, and country like ours,
while avoiding unnecessary glitter
and show, should be certain that it does
not suffer in the relation with foreign
nations through parsimony and shabbi-
ness in its diplomatic outfit. These con-
siderations and the other advantages
of having fixed and somewhat perma-
nent locations for our embassies, would
abundantly justify the moderate ex-
penditure necessary to carry out this
suggestion,
OUR FINANCIAL CONDITION.
AS we turn from a glance at our for
eign relations to the contemplation of
our National financial situation we are
Immediately aware that we approach a
subject of domestic concern more i'm
portant than any other that can engage
our attention, and one at present in
which we are in such perpleXing and
delicate predicament as to require
prompt and wise treatment. We may
well be encouraged to earnest effort in
this direction when we recall the steps
already taken toward improving our eco
nomic and financial situation and when
we appreciate how well the way has
been prepared for future progress by in
telligent popular interest in these sub
Jects. BY command of the people GUS
toms revenue system, designed for the
protection and benefit of favored classes
at the expense of the great mass of our
countrymen, and which, while inefficient
for the purpose of revenue, curtailed
our trade relations and impeded chr en-
trance to the markets of the world, has
been revised by tariff policy which in
principle is based upon a denial of
the rights of the government to obstruct
the avenues to our people, cheaper liv-
ing or lessen their comfort and content
ment for the sake of according the So
cial advantages to favorites, and which,
while encouraging intercourse and trade
with other nations, recognize the fact
American self-reliance, thrift and inge-
nuity can build up for our country in
dustries and develope its resources more
surely than eneryating paternalism. The
compulsory purchase and coinage of sill
yer by the government, unchecked and
unregulated by business conditions and
needless of currency needs, which for
more than 10 years diluted our circulat-
ing medium, undermining confidence
abroad in our financial ability, and at
last eliminated in distress and panic at
home. has been recently stopped by the
repeal of the laws which forced this reck-
less scheme upon the country. The
things thus accomplished, notwithstand-
ing their extreme importance and benef-
icient effects, fall far short of curing
the monetary evils from which we suffer
as result of long indulgence in ill-ad-
vised financial expedients.
OUR GREENBACKS.
The currency, dominated United States
notes and commonly known as green
backs. was issued in large volumes dur
ing the late civil war and were intended
originally to meet the exigencies of that
period. 1t will be seen by reference to
the debates in congress at the time the
laws were passed authorizing the issue of
these notes, that their advocates declar-
ed they were intended for only Temporal
ry use and to meet the emergency of
war. In almost, if not all, the laws re-
lating to them some provision was made
contemplating their voluntary or compul-
| sorry retirement. A large quantity of
them, however, were kept on foot and
mingled with the money of the country SO
at the close of the year 1874 they
amounted to 1881, 999,073 Immediately
after that date, and in January, 1873,
law was passed providing for the re-
sumption of specie payment by which the
secretary of the treasury was required
whenever additional circulation was is
States notes in amount to 80 per cent
of such additional National bank circu
| lation, until such notes were reduced tC
S300O00,000 This law further provided
that on and after the first day of January
1879, the United States notes then out
standing should be redeemed in coin anC
in order to provide and prepare for suct
redemption the secretary of the treasury
was authorized not only to use any sur
plus revenues of the output, but ISSUE
bonds of the United States and dispose
of them for coin and use the proceeds fol
the purposes contemplated by the stat
utes. In May, 1875 and before the dat
thus appointed for redemption and retire
ment of these notes, another statute wa
passed forbidding the further cancella
ton and retirement. Some of them had
however. been previously redeemed ant
cancelled upon the issue of additional
National bank circulation as was per
mitted by the law of 1873, so That tn
amount outstanding at the time Oh I'M
passage of the act forbidding their fulr
Their retirement was $346,6S!, 0lo' I'M
law of 1878 did not stop at distinct pro
hibition. but contained in addition, th
following express provision: And whel
any of said notes that may be redeemed
or be received into the treasury under an!
law from any source whatever shall be
long to the United States they shall no
be retired, cancelled or destroyed, bu
they shall be reissued and paid out agall
and kept in circulation" This was tn
condition of affairs on the first day
January, 1879, which had been hXe'
upon four years before as the date Tor en-
tering upon the redemption and retire
ment of all those notes, and for Whlcl
such abundant means had been provided
The government means had been provid
ed and the government was put in tn
anomalous situation of owing to tn
holders of it's notes debts payapl
in gold on demand, which could neithe
be retired by receiving such notes II
discharge of obligations due the govern
ment. nor cancelled by actual paymen
in gold. 1t was forced to renew then
with redemption and to pay without ac
Guitance. There have been issued anC
sold sos, 100000 of bonds authorized
by the resumption act of 1873. The pro
ceeds of which, together with other gold
in the treasury. created gold rune
deemed sufficient to meet the. demands
which might be made upon it for the re
demption of the outstanding United State!
notes. This fund, together with sucl
other gold as might be from time .
time in the treasury available tor I'M
same purpose, has been since called oul
gold reserve, and $100,00O,OOO has beer
garded as an adequate amount TO &C
complish its object. This fund amount 0
cd On the last day of January, 1850, u
1oe 1oe and though thereafter con