Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1895-12-12
OUR FINANCES
A Subject of the Greatest Importance to
the American Peoole

ions TO the contemplation OF cur national
financial situation we are Immediately aware
that we approach subject of domestic con-
cern- more important than any other that can
engage our attention, and one at present in
such perplexing and delicate predicament as
to require prompt and wise treatment
We may we'll be encouraged to earns st effort
In this direction when We recall the steps
already taken toward improving our economic
and financial situation, and when to appreciate
how we'll the way has been prepared for further
progress by an aroused and intelligent popular
interest in these subjects. By command of the
people, a customs revenue system, DESIGNED for
the protection and benefit of favored classes at
the expense of the great majority of our coun-
trymen and which, while inefficient for the pur-
pose OF revenue. curtailed our trade relations
and impeded our entF lnce to the markets of
the world, has been superseded by
tariff policy which, in principle, Is
based upon a denial of the right
of the government to obstruct the avenues of
our peoples cheap living or lessen their COM
fort and contsntment, for the sake of according
special advantages to favorites. and which,
while encouraging our intercourse and trade
with other nations, recognize the fact that
American self-reliance. thrift and engenuity,
can build up our country's industries and de-
velOp its resources more surely than enervstine
paternahsm. The compulsory purchase and
coinage of silver by the government unchecked
and unregulated by business conditions and
needless of our currency needs, which for moro
than fifteen years diluted our circulating med
iuTn, undermined conf dence abroad in our fnan
cial ability and at last eliminated in distress and
panic at home has been recently stopped by the
repeal of the laws which forced this reckless
scheme upon the country. The things thus ac-
complished Notwithstanding their extreme i'm
portance and benehcient effects, fell far short
OF curing the monetary evils from which we suf-
fer as result of long indulgence in i'll advised
financial expedients. The currency denorn-
mated United States notes and commonly
known as green-backs was issued in large vol
urnss during the late civil war and intended
nf haA
period It will be seen by reference to the
debates in congress at the timc laws were
passed authorizing the issue of these notes.
that their advocates declared they were in
tended Tor only temporary use and to meet the
emergency of war In almost, if not all, the
laws relating to them, some provision was
made contemplating their voluntary or COM
pulsory retirement. large quantity of them,
however. were kept on foot and mingled with
the currency of the country 80 that at the
close of the year 1874 they amounted to $751;
999,078 Immediately after that date and in
January, 1875. a law was passed providing for
which the Secretary of the Treasury
was required, whenever additional circu-
lation was Issued to National banks,
to retire United States notes in equal amount
to 80 per cent of such additional National bank
circulation until such notes were reduced to
$500 100000. This law further provides that on
and after the last day of January, 1879, the
United States notes then outstanding, should
be redeemed in coin, and in order to provide
and prepare for such redemption the secretary
of the treasury authorized not only to use
any surplus revenues of the government, but to
issue bonds Of the United States and dispose of
them for coin and to use the proceeds for the
purposes contemplated by the statute.
In May, 1873, and before the date thus ap-
pointed for the redemption and retirement of
these notes, another statute was passed for
bidding their further cancellation and retire
ment. Some of them had, however, been pre-
viously redeemed and cancelled upon the issue
OF additional national bank circulation. as per
United by the law of 1875 SO that the amount
outstanding at the time of the passage of the
act forbidding their further retirement was
$SO,6S1G GIG. The law of 1873 did not stop at dis
tinct prohibition but contained in addition
the following provision, "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, they5 hall not
be retired, cancelled, destroyed, but they
shall be re-issued and paid out again and Ike pt
in circulation. =" This was the condition of af-
fairs an the 1st day of January 1879, which had
oeen liked upon four years before as the date
for entering upon the redemption and retire
ment of all these notes, md for which such
abundant means had been provided The gov
eminent was put in the anomalous situation of
owing to the holders of its notes, debts payable
in gold on demand which could neither be re-
tired by receiving such notes in discharge OF
o obligations due the government, not cancelled by
actual payment in gold. 1t was forced to re-
deem without redemption and to pay without
acquittance.
There has been issued and sold S95,500 900 of
the bonds author. zed by the resumption act of
1875, 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, to-
gether with such other gold as might be from
time totime in the treasury available for the
same purpose, has been since called our gold
reserve and 500 100000 has been regarded as an
adequate amount to accomplish its object.
This fund amounted on the 1st day of January.
1879, to S1t4, 1856 1876 and though thereafter con-
stantIy huctuatiug, it did not fall below that
sum in July, 1892. In April, 1898, for the first
time since its establishment this reserve
amounted to less than S1OO 900, 900, con tanning
at tn at date only Sy7 oil $3.50.
The Bond Contract.
The message reviews at great length the low
ering of the I'D reserve, the shipment of gold,
the issuing of bonds, the entering into the bond
Congress for relief. Continuing. the President
says:
The Congress having declined to grant the
necessary authority to secure this saving the
contract unmodified was carried out, resulting
in a gold reserve amounting to S107, Sf1 ,250 on
the Sth day of July, 1895. The performance of
this contract not only restored the reserve but
checked for time the Withdrawals of gold and
brought period of restored confidence and
such peace and quiet in business circles as
were of the greatest possible value to every in
terest that affects our people have never had
the slightest misgiying concerning the wisdom
propriety of this arrangement and am quite
willing to answer for my full snare of RESPONSE
bility for its promotion.
believe it averted disaster, the irnminence
of which is fortunately not at this time gener-
ally underS TODD by people Though the