The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-12-17

acquiesced IN q departure from the
literal terms OF the contract, that one
half of the coin should be procured
abroad and accepted deposits of gold
then held in this country to complete
the delivery. Ordinary prudence de-
nnanded that the success OF the plan
to protect the treasury against WITH
drawals should not be endangered by
insisting upon a strict compliance Win
all the details of the contract, especl-
ally as the government could sustain
no less and the whole amount Oh golo
stipulated for was secured.
Benefit of Bonds.
The amount of bonds issued unaer
this contract was S62, 315, 400, and the
amount of gold received was S65, 116,2 IA
The beneficial effects of this trans
action. the secretary says, were feit
immediately, not only in this coun-
try, but in others having commerclal
relations with US.
coincidence in our securities" he
continues. was at once restored, ana
the encouraging indications OF IN
creasing prosperity still continues.
and it is reasonably certain that II
our progress is not checked by
repetition of large demands upon our
resources or by a failure to meet the
Just expectations of the people in re-
spect to the reformation of our hscal
system. we are entering upon an era
of material growth and development
not surpassed in our history. Inc
safety of the existing situation Is,
however. constantly menaced and our
further progress toward the complete
restoration of confidence and pros
perity is seriously impeded by the de-
fects in our currency laws and the
doubt and uncertainty still prevail
ing in the public mind, and especially
abroad. concerning the future none
tary policy of the government. Unless
these defects in our laws are remedled
and these doubts are removed, there
can be no satisfactory assurance or
immunity from periodical disturbances
growing out of the obligations which
the government has been compelled to
assume in relation to the currency.
Treasury Notes.
Our past experience with the United
States notes and the treasury notes
has clearly shown that the policy Of
attempting to retain these obligations
of the government permanently as a
part Of our circulating medium, and
TO redeem them in coin on presenta-
ton and reissue them after redemp-
ton must be abandoned or that such
means must be at once provided as
will have a tendency to facilitate the
efforts Of the secretary to accumulate
and maintain coin reserve sufficient
in amount to keep the public con-
stantly assured of the stability of our
entire volume OF currency and of our
ability at all times to preserve equal
ity in the exchangeable value of it's
various parts. The latter alternative,
which, in my opinion, if adopted would
not afford the relief demanded by the
existing situation, necessarily in
wolves such large increases of the in
terest-bearing public debt from time
to time. and would impose permanent
~ upon the government such errone-
Gus and inappropriate duties that it
ought not to be favorably entertained
except as a last resort in the struggle
for the maintenance Of public faith
and the reservation of the inviolabil-
tty of private contracts.
The Ultimate Result.
"TNhe issue of bonds,' he says. ito
procure coin for the reserve, which is
the only effectual method now available
under the law, will, unless conditions
which have already been developed by
the present policy are radically
changed, ultimately result in the crea-
ton Of public debt much larger than
would be required to retire and cancel
the notes; and the annual interest
charge would be much greater than
1t would be necessary to incur on a
new issue Of bonds adapted to the
present circumstances of the govern
ment and the we'll known preferences
OF investors. If, however, an ATTEMPT
is to be made to keep the United
States notes and treasury notes per-
manently in circulation by reissues
after redemption and the government
IS to be permanently charged with the
duty of sustaining the value of all our
currency, paper and coin alike. the con-
clusion canot be avoided that the policy
of issuing bonds for the ACCOMPLISH
1nent of these purposes must also be-
come permanent and such additional
powers must be conferred upon the sec
rotary as will enable him to execute
the laws relating TO these subjects
with the least possible disturbance of
the business affairs of the people and
the least possible charge upon the
treasury. 81 a.
1t Shoula Cease.
II am thoroughly convinced that this
policy ought not to be continued. but
that the United States notes and treas
u1'y notes Should be retired from cir
culation at the earliest practicable day
and that the government should be
wholly relieved from the responsibility
of providing a credit currency for the
people
ut would be difficult to devise a. more
tnconvenient, expensive or dangerous
system than the one now in opera
ton under the laws providing for the
issue, redemption and reissue of legal
tender notes by the government
There has never been a time since
the close Of the war" the secretary
says, when the gradual retirement
and cancellation of the United States
notes would not have been a benefit
to the country, nor has there ever
been a time when the issue Of ad-
ditional notes of the same character
would not have been injurious to the
country.
IF our legal tender notes were re-
tired there is abundant reason to be-
lieve that every large amount of gold
which has been excluded from the
country by the excessive use Of silver
and paper in our circulation, would
promptly return to take its place in
our currency and constitute a perma-
nent part of our medium of exchange.
Can BE No Deprivation.
"A country having such extensive
trade relations with other nations as
we now enjoy cannot be deprived of
its proper share of the worlds stock
Of money and if it adopts and adheres to
a, sound and stable currency system at
home it will get the best money the
world has, because no other kind is
ever used in international transaction.
AS long as the government leaves our
people reasonably free to trade abroad
and does not make any kind of paper
legal tender in the payment of debts,
it cannot materially or injuriously
contract the currency by the with