The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1895-12-05
ABOUT OUR FINANCES.
Present Situation Demands Prompt and
Wise Treatment. s


AS we turn from review of our foreign
relations to the contemplation of our ma
,ional financial situation. we are imme
diatel, aware that we approach subject
of domestic concern more important than
any other that can engage our attention.
and one at present ia s1ch perplexing
AMI delicate predicameno as to require
prompt and wise treatment.
The compulsory purchase and coinage OF
silver by the government unchecked and
unregulated by business conditions and
needless of our currency needs, which for
m re than IL years diluted our clrcu-
lating medium, undermined confidence
abroad in our financial ability, and at last
eliminated III distress and panic at home.
has been stopped oy the repeal OF the laws
which forced this reckless scheme upon
the country. This, together with the
amended tariff bill, Notwithstanding their
extreme importance and benefcent effects,
fall far short Ut curing the monetary evils
from which we suffer as result of long
indulgence in ill-advised financial ex-
pedieuts. $780,.
.Greenb ,cks Discussed.
The currency d.nominated United States
notes and commonly known as green
backs was issued in large volume during
the late civil war intended Originally to
meet the exigencies of That period. A
large quantity of them however, were
kept on foot and mingled with the cur
5rency Of the country SO that at the close
of the year 1874, they amounted to $751;
800, O73. .>... = e
Immediately after that date and in Jan
.uary, .875, law was passed providing
that on and afver the lst of January, 1879,
the United States notes then outstanding
should be redeemed in coin and in order
to provide and prepare IL; such redemp-
ton the secretsry of the treasury was au-
thorized not only to use any surplus rev.
enues of the government but to issue
bonds Of the United States. and dispose
Of them for coin anil to use the proceeds
for the purposes contemp ated by the
statue.
In May, 1873, and before the date thus
appointed for tts redemption and retire
ment of these notes, another statute. was
passed forbidding their further cance'la-
ton and retirement. Some of tnem had.
however, been previously redeemed and
cancelled upon the issue of additional ma
tional bank circulation as permitted by
the law of 1875, so that the amount out
standing at the time of the passage of tne
act forbidding their further retirement
was $346, 6Sl DIG.
rrovi ions of the Law of 1878.
Tie law OF 1878 did not stop at distinct
prohibition, but contained, in addition,
the following express provisiof: 'And
when any of said notes may be redeemed
or be received into the treasury under any
law from any source whatever and shall
belong to the United States, they shall not
be retired. cancelled or destroyed, but
they shall be reissued ana paid out again
and kept in circulation" -
The government was thus put In the
anomalous position of owing to the hold
ers OF it's notes, debts payable in gold on
demand, which could neither be retired
BY receiving such notes in discharging
obligations due the government nor can
3celled b. actual payment in gold. 1t was
forced to redeem without redemption and
to pay without acquittance. r.-
There had been issued and sold S95 $780,
coo Of the bonds authorized by the resump-
ton act of 1872 the proceeds Of which,
together with other gold in the treasury,
created gold fund deemed sufficient to
meet the demands which might be made
upon it for the redemption OF the out
standing United States notes. This fund,
together with such other gold as might be
from time to time in the treasury available
for the same purpose, has since been called
our gold reserve, and S!00, 0O0, 900 has been
regarded as an adequate amount to &C
complish its object =,t.e.
Shrtnkage of the Reserve. = 5:
The reserve had fallen in April, 1895, TO
SCI, OF l. 800 It has from that time to the
b esgnt, with very few and unimportant
NOV ements. steadily decreased except as
it has been temporarily replenished by the
sale of bonds. @$
Among the causes for this constant and
uniform shrinkage in this nd may be
mentioned the great falling of Of exports
under the Operation of the tariff law un-
til recently in force, which crippled our
exchange of modities with foreign
nr.ions and necessity, to some extent, the
payment of our balances in gold; the un
natural infusion Of silver into our cur
rency. and the increasing agitation for its
free and unlimited coinage, which have
created apprehension as to our disposition
or ability to continue gold pay ments; the
consequent boarding of gold at home and
the stoppage of investments Of foreign
capital, as well as the return of our Sc
curities already sold abroad. and the
high rate Of foreign exchange, which in
az sf13 ~