New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-13
GREENBACK RETIREMENT no REMEDY.

GREENBACK RETIREMENT no REMEDY
Much confusion Of mind seems to exist among
those who are urging short-term loans and re-
trement Of greenbacks as a means OF relieving
the Treasury The deficiency of revenue cannot
be helped in the slightest degree, but, on the
contrary can only he increased by substituting
interest bearing debt for notes which bear no
interest. If the Treasury holds S70OOO,OOO
legaltender notes and should put out bonds or
short-term certificates for that amount In gold,
retiring the notes, it would have not one dollar
more with which to meet current Obligations
than it now has, but those current obligations
would be increased by the interest payable on
the bonds or other obligations, whether the rate
be per cent or more. Viewed with respect to
the deficiency Of revenue, that would not be
a remedy at all, but only further step toward
bankruptcy. 1t is therefore amazing to see this
measure approved by some bankers or members
Of Congress- whose statement shows their thor
ough appreciation Of the fact that the Treasury
is in difficulty because its receipts do not equal
its expenditures. A more grOtesQue remedy for
that difficulty than the one proposed could not
we'll be conceived
The opposite point of view is that the Treas
ury somehow loses by the withdrawal OF gold
I'm redemption Of greenbacks. and therefore the
suppression Of part of the notes would somehow
save II from danger But the Urea sury loses not
one cent when its notes are retired and gold
taken out. 1t has exactly the same amount OF
money as before for the payment of public eX-
penses As the return Of notes to the Treasury
does not lessen so their retirement would not
increase in any way the reserves available for
expenditures considered In the aggregate. 1t
would affect only the supply Of gold, which di-
mnishes because imports are inflated by low
duties so that they relatively exceed exports, and
because the constant excess of expenditures over
receipts creates apprehension and deprives the
Treasury Of power to defend its credit or its
gold reserve.
Candid men who have intelligence enough to
see that the Treasury deficit and the excess
of imports cause all the trouble and the danger,
have no respectable excuse 10 make for pro-
posing any substitution Of bonds bearing in
terest for notes bearing none. The only pretext
Oh which that substitution can be urged must
start with the false assumption that the Treas
ury has now or presumably will have, revenue
enough to meet all expenditures. and that the
excess Of merchandise imports over exports does
not take gold out of the country and the Treas
ury. 1t is not easy to argue with any man who
Ignores the facts SO far as TO take this ground
Congress. at all events will waste very little
time in arguing with such person. whether he
be the President or Secretary Of the Treasury
or anybody else It's evident duty is TO know
the facts and to meet them honestly and can
didly.
The notion that Congress cannot proceed to
cure q deficiency of revenue unless the Presi-
dent or Secretary cOnfcsses its existence and
asks TO have it cured is sufficiently laughable
TO expose any Senator or Representative to ridi-
cule IL either branch Of Congress were unable
to take cognizance Of any other knowledge ex-
cept the information" which the President
might convey to Congress in his annual mes
sage the lawmaking part Of the Government
might as well go out OF business altogether.
Practical Republican statesmen will rise above
such childishness and will realize that they hold
n solemn trust from the people to do what the
President and Secretary Of the Treasury and
their partisans have refused to do. The amaZ
ing foolishness Of Democratic Administration
and Congress will not bind Republicans fresh
from the people TO see nothing which the Presi-
dent does not tell them, and TO do nothing which
he does not propose.