The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-04

! governmen, aid nothing but loek on while
Nicaragua was payinr over $500 70 re-
pair ths injured dignity OF q worthless
British consul
In addition TO the slight and rather In
appropriate aIluston TO the tariff IN con-
nectfon with the exclusion OF American
cattle and Insurance companies from Ger
many. another short reference is made TO
II In a way fhat signifies the president Is
abundantly well satisfied with the work
ings OF the ~so-called reform law. w
may well be encouraged to earnest effort
in this direction" he says. when we
recall the steps already taken toward
improving our economic and financial
situation. and when we appreciate how
well the way has been prepared for
further progress by an intelligent popular
interest on these subjects" Just why We
should feel encouraged Is not explained In
detail. and the Improvement In our eco
nomlc and financial condition is not set
forth in a way that will satisfy the people
who have been witnesses 10 the financial
and Industrial distress OF the past eighteen
months. And not a few will be tempted
70 ask what the president would style the
new tariff law. IL he d~esignates the old
law as one inefficient for the purpose OF
revenue.
Fully one-half Of the message Is devoted
70 a study OF our financial condition. with
an argument In favor OF retiring the green
back. a presentation OF the details OF the
FAr
them Is thrown of on an incompetent con-
gress, and a final giving OF reasons why
the country should not enter upon the free
coinage of silver. This part OF the docu-
ment is written with more or less elabora-
ton and 1T Is impossible TO common upon
II briefly. AS was to be expected. Mr..
Cleveland insists that our revenue receipts
have nothing TO do with the maintenance
Of the gold reserve. on the difficulty OF
preserving the integrity OF which he
writes at great length. In holding this
view he very plainly misses the funda-
mental trouble with the treasury. prob
ably for the simple reason that he doesn't
care to view IL in the right light.
While the law says that the g~reenbacks
received by the treasury shall be reissued
1t does not say that this shall be done i'm
medlately. and as a matter or fact, 1t never
was done Immediately until the revenues
OF the government began 10 fall below the
necessary amount But since Carlisle has
been secretary greenbacks no sooner cana
into the treasury than they went out
again 10 pay current expenses. The truth
is that while the bond issues have been
ostensibly for the benefit OF the gold re-
serve. a large part OF the proceeds have.
as matter OF fact. been devoted 20 the pay
ment OF the expenses OF the government.
When bonds were sold the gold proceeds
were deposited to the credit OF the reserve
fund. But when the gold began to be
drawn out the greenbacks with which 1t
was drawn were paid out TO meet current
expenses.
Under ordinary conditions these green
hacks would have been retained for a time
in the treasury until there was a demand
for them, and then they would have been
paid out In exchange for gold. But the
lack OF reserve made IL necessary 10 pay
out the greenbacks as fast as they were
received for current expenses, and thus
the volume OF greenbacks In circulation
was always kept at the maximum, and
the treasury had nothing TO attract gold.
That lack OF revenue was the real cause of
the s~ecretary's trouble Is shown clearly
enough by the fact that It never happened
before. While the revenues were in excess
OF expenses the government never had any
difficulty in maintaining the gold reserve.
but as soon az they fell below. its means
OF getting gold was gone, because 1t had
TO pay out the greenbacks as fast as 1t gv1
them for current expenses.
The president touches on various mat
ters. foreign and domestic. of consider
able Importance. but the most interest Will
be taken Ia the remedies he proposes for
getting the government out OF the predica-
ment IL is now In financially. a great
many OF his suggestions as 90 the currency
are worth careful consideration. and Will
no doubt receive IL. but It is hardly prob
able that congress win view the financial
situation exactly as he does. or win apply
for the relief OF the country the remedies
which he prescrlbes.