The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-12-07

such to be useful ought to be
at least measurabiy permanent and this
is precisely what Is prohibited, so far
as United tSates notes are concerned,
by the law of 1878, forbidding their fur
ther retirement. That statute in so
many words provides that these notes
when received into the treasury. and
belonging to the United States, shall be
paid out again and kept in clrcula-
ton" 1t will moreover be readily seen
that the government could not refuse
to pay out United States notes and
treasury notes in current transactions
when demanded and insist on paying
out silver alone and still maintain the
parity between that metal and the cur
rency representing gold. Besides, the
accumulation in the treasury of cur
rency of any kind exacted from h peo-
pie through taxation is Justly regarded
as an evil. and it cannot proceed far
without vigorous protest against an un-
iGstifiable detention of money from the
business of the country and a denunci-
alton of a scheme of taxation which
proves itself to be unjust, when it takes
from the earnings and income of the
citizen money so much in excess of the
needs of the government support that
large sums can be gathered and Kept
in the treasury. Such a condition a
heretofore in times of surplus venue
led the government to restore currency
to he people by the purchase of it's
Gnmatured bonds at a large premium
and by a large increase of its deposits
in national banks and we easily re-
member that the abuse OF treasury ac-
emulation has furnished a most per-
suasive argument In favor of legisla-
ton radically reducing our tariff.
Perhaps it is supposed that sufficient
revenue receipts would in a sentimental
way improve the situation by inspiring
confidence in our solvency and allaying
the fear of pecuniary exhaustion. and
yet through all our struggles to main
tain our gold reserve there never has
been any apprehension as to our ready
ability to pay our way with such money
as we had and the question whether or
not our current receipts met u current
expenses has not entered into the esti-
mate of our solvency. OF course the
general state of our funds exclusive of
gold was entirely immaterial to the for
eign creditor and investor. His interest
could only be paid in gold and his only
concern was our ability to keep on hand
that kind of money.
On July l, 1898. more than a year and
a half before the first bonds were is
sued to replenish the gold reserve, there
was a net balance In the treasury ex-
elusive of such reserve of less than
Sl3, 00c 900; but the gold reserve amount
ed to more than STA, 900. 900. which was
the quoting feature of the situation. 1t
wa c Iyhan thu ctpnly pf cold l>ar,r no
idly to fall that fright supervened and
Il securities held abroad We're re-
turned for sale, and debts owed abroad
were pressed for payment. In the mean
time extensive shipments of gold and
other unfavorable indications caused
restlessness and fright among our peo-
pie at home. Thereupon the general
state of II funds exclusive of gold Me-
came also immaterial to them and they,
too. drew gold from the treasury for
boarding against all contingencies.
This is plainly shown by the large in
crease in the proportion of gold with
drawn which a retained by our own
people as time and threatening incl
dents progressed. During the fiscal
year ending June 30, 1894. nearly $751;
600, 900 in gold was withdrawn from the
treasury and about ST., 900, 600 was sent
abroad, while during the fiscal year
ending June 80, 1895, over SILT, 900, 900
was drawn out, of which only about
s66, 600, 600 was shipped. leaving the large
balance of such Withdrawals to be ac-
counte for by domestic boarding.
Refers to Free Silver.
While I have endeavored to make a plain
statement OF the disturbed condition of
our currency and the present dangers
menacing our prosperity and to suggest n
which leads to n safer financial sys-
tenn, l have constantly had in mind the
fact that many of my countrymen whose
sincerity ] do not oub insist that the
cure for the Ills now threatening us may
be found in the single and simple remedy
of the free coinage of silver. They con-
tend that our minis will be at once thrown
open to the free. unlimited and ~independ-
ent coinage of both gold and silver dol
lars of full legal tender quality, regardless
of the action of any other government,
ana In full view of the fact that the ratio
between the metals which they suggest
calls for 100 cents worth of gold in the
gold dollar at the present standard and
only 80 cents in intrinsic value worth of
silver in the silver dollar. Were there in
finiteiy stronger reasons than can be ad-
duced for hoping that such action would
secure for US a bimetallic currency NOV
ing on lines of parity, II experiment so
novel and hazardous as that proposed
might well stagger those who believe that
stability is an imperative condition of
sound money. No government, no human
continuance or act OF legislation has ever
been able to hold the two metals togeth-
er in free coinage at a ratio appreciably
different from that which Is established
in the markets of the world.
Those who believe that our Independent
free coinage of silver at an artificial ratio
with gold at IL to l. would restore the
parity between the metals, and conse-
Quently between the coins, oppose an un-
supported and improbable theory to the
general belief and practice of other ma
tons and to the teaching of the wisest
statesmen and economists of the world,
both in the past and present and, what is
far more conclusive, they run counter to
our own actual experiences. Twice in our
earlier history our lawmakers attempted
to establish u bimetallic currency by free
coinage upo a ration which varied from
the actual relative values of the two met
ais not more than 3 per cent. In both
cases., Notwithstanding greater difficult
ties and cost of transportation than now
exist. the coin whose intrinsic worth was
uEderva!ued in the ratio. gradually n
SuiSiJ AiS1ppSdi lIoli ouIH CliCuldllOn
and went TO other countries where its
reai value was better ecogniZed. Acts of
congress We're impotent to create equal
ity where natural causes decreed even n
slight inequality. Twice in our recent his
tory we have signaliy failed to raise by
legislation the value Of silver. Under an
act of congress passed in 1878 the govern
ment was required for more than twelve
years to expend annually at
least s24,o 100000 in the pur-
chase of silver bullion for coinage.
The Act of 1890.
The act OF July IA. 1890, in a still bolder
effort. increased the amount of silver the
government was compelled to purchase
and forced it to become the buyer an
nually of 81. 000, 600 ounces. or prac-
tically the entire product of our mines.
Under both laws silver rapidly and
steadily declined in value. The proph-
ecy and the expressed hope and expec-
tation Of those in congress who led in
the passage of the last mentioned act
that it would re-establish and maintain
the former parity between the two met
ais are still fresh in our memory.
In the light of those experiences
which accord with the experiences OF
other nations there is certainly no Sc
cure ground for the belief than an act
of congress could now bridge an in
equality of so per CEN between gold and
,1,,1, ~ -, .a. ,.%.. $500. A.. 49,