Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1895-02-09

amounting TO nearly $500. 900. 900, there
will fall due In 1904 500. 0o0, 900 Of bonds
issued during the last year for which
we have received gold and In 1907
nearly 5000. 000. 900 Of 4 per cen bonds
issued In 1877. Shall payment OF these
obligations In gold be repudiated? If
they are to be paid I'm such a ann
preservation Of our national honor n
national s~olyency demands we should
not destroy or ever imperii our Ill
ity to supply ourselves with gold for
that purpose.
While l am not unfriendly to sill
yer. while / desire to see IL recognized
to such an extent ~ In consistent with
financial safety and the preservation Of
national ono and credit, l am not
willing TO see gold entirely banished
from our currency and finances. To
avert such a consequence / believe
thorough and radical remedial legis-
lation should be promptly passed. 7
therefore beg congress to give the sub
Ject immediate attention.
IL IL my opinion the secretary of the
treasury should be authorized to Issue
bonds OF the government for the per-
pose OF procuring n maintaining suf-
ficient gold reserve and redemption
and cancellation OF United states lie.
gal tender notes and treasury notes is-
sued for the purchase OF silver under
the law OF July IA, 1890. We should he
relieved from the humiliating process
OF issuing bonds to- procure gold TO be
Immediately and repeatedly drawn ont
on these obligations for a purpose not
related to the benefit OF our govern
ment or people. The principal and in
terest OF these bonds should be pay
able Oh their face in gold or its repre-
sentative and because there would now
probably be difficulty in favorably dis
posing Of bonds not containing this
stipulation.
suggest that bonds be issued in
denominations OF 500 and $50 and their
multlples. and that they bear interest
at a rate not exceeding 3 per cent
per nnu / do not see why
they should not be payable fifty years
from their date. We Of The present
generation have large amounts to pay
10 meet our obligations and long bonds
are o salable. The secretary Of the
treasury might well be permitted at
his discretion TO receive on the sale Of
bonds the legal tender and treasury
notes to be retired, and, OF course.
when they are thus retired or redeemed
In gold they should be Cancelled. These
bonds under existing laws could be de-
posted by national banks as security
for circulation; n UGH banks should
be allowed to issue circulation up TO
the face value Of these or any other
bonds so deposited, except bonds
drawing only 2 per cent interest and
which soil In mnrkaf al lauc than mar
National banks should not be allowed
TO take out circulating notes of a less
denomination than $40 and when such
as are o outstanding reach the treas
ury, except for redemption and re-
tirement. they should be Cancelled and
notes OF the denomination OF $40 and
upward issued in their stead and silver
certificates OF denominations under
SO. As a constant means for the main
tenance Of a reasonable supply Of gold
In the treasury he duties on imports
should be paid i'm gold. all other dues
10 the government to- be paid IN any
other form OF money.
believe all the propositions | have
suggested should be embodied in our
laws II we are to enjoy Il complete re-
instatement OF a sound financial condi-
ton. They need not interfere with any
currency scheme providing for the in
crease OF the circulation mediums
through the agency Of national or state
banks, since they can easily be adjusted
to such a scheme. Objection has been
made to the issuance OF interest bear
ing bonds for the purpose OF securing
the n~oninterest bearing legal tender
notes. In point Of fact. however. these
notes have burdened us with a large
load Of interest, and IL is still accumu-
lating. The aggregate interest on the
original issue Of bonds the proceeds OF
which in gold constituted the reserve
for payment OF tA.ese notes amounted
TO $40, SEC. $50 ON January /. 1895. The
annual charge for interest on these
bonds and those issued for the same
purpose during the last year will be
80. 145. 900. dating from January /. 1895.
While cancellation of these notes would
relieve us from obligations already in
Cured on their account those figures
are given by way OF suggesting that
their existence has not been free from
interest charges and that the longer
they are outstanding, judging from the
~ VI iact staiE Nht ~ 90
pensive they will become.
In conclusion I desire to frankly
confess my reluctance TO issuing more
bonds In the present circumstances and
with no better results than have lately
accompanied that course. i cannot,
however. refrain from adding to an as
surance OF my anxiety to CO operate
with the present congress in any rea-
sonable measure Of relief IN expression
Of my determination TO leave nothing
undone which furnishes a hope for i'm
proving the situation or checking a sus-
picion OF our disinclination or desira-
bility to meet with strictest honor
every national obligation.
Grover Cleveland.
Executive Mansion. Washington. jan
uary %, 1895.