Crawford avalanche. (Grayling, Mich.) 1879-19??, 1895-12-12

r
ly $S5, 100000 in gold was withdrawn
from the treasury and about $77,OOOOOO
was sent abroad, while during the fiscal
year ending June 80, 1895, over $117,-
000,0O0 was drawn out, of which only
about $50, 100000 was shipped, leaving
the large balance of such Withdrawals
to be accounted for by domestic boarding.
Increased Revenues No Remedy.
Inasmuch as the withdrawal Of our
gold has resulted largely from fright,
there Is nothing apparent that will pre-
vent its continuance or recurrence with
it's natural consequences, except such a
change in our financial methods as will
reassure the frightened and make the
desire for gold less intense. 1t is not
clear how an increase in revenue, unless
it be in gold, can satisfy those whose only
anxiety is TO gain gold from the Govern
ment's store. 1t cannot, therefore, be
safe to rely upon increased revenues as
a cure for our present troubles.
1t is possible that the suggestion OF
increased revenue as a remedy for the
difficulties we are considering may have
originated in an intimation or distinct
allegation that the bonds which have
been issued ostensibly to replenish our
gold reserve were really issued to supply
insufficient revenue. Nothing can be fur
ther from the truth. Bonds were issued
to obtain gold for the maintenance of our
national credit. AS has been shown the
gold thus obtained has been drawn again
from the treasury upon United States
notes and treasury notes. This operation
would have been promptly prevented, If
possible, but these notes having thus
been passed to the treasury they became
the money of the Government, like any
other ordinary Government funds, and
there was nothing TO do but to use them
in paying Government expenses when
needed.
At no time when bonds have been is
sued has there been any consideration of
the question of paying the expenses of
Government with their proceeds. At the
time of each bond issue we had a safe
surplus in the treasury for ordinary ope-
rations, exclusive of the gold i'll our re-
serve. In February, 1894, when the first
| issue of bonds was made, such surplus
amounted to over $4,000, 900; in Novem-
| Der, when the second issue was made il
amounted to more than $42,O0O,O00, and
| in February, 1895, when bonds for the
| third time were issued, such surplus
| amounted to sos, or, ,420.3O. Besides all
| this, the Secretary of the Treasury had
no authority whatever to issue bonds IL
| increase the ordinary revenues or pay
| current expenses.
l cannot but think there has been some
| confusion of ideas regarding the effects
| of the issue of bonds and the results of the
withdrawal of gold. 1t was the latter
| process and not the former that by sub
| stituting in the treasury United States
notes and treasury notes for gold increas-
| ed by their amount the money which was
| in the first instance subject to ordinary
| government expenditure. Although the
| law compelling an increased purchase of
| silver by the Government was passed on
! the 14th day of July, 1890, Withdrawals
| of gold from the treasury upon the notes
| given in payment on such purchases did
not begin until October, 1891. Immediate
! ly following that date the Withdrawals
| upon both these notes and United States
notes increased very largely, and have
/ continued to such an extent that since
the passage of that law there has been
more than thirteen times as much golt.
! taken out of the treasury upon United
| States notes and treasury notes issued for
silver purchases as was thus withdrawn
| during the eleven and a half years imme-
diately prior thereto and after the first
day of January, 1879, when specie pay
| ments were resumed.
1t is neither unfair nor unjust to charge
a large share of our present financial per-
| pleXities and dangers to the operation of
the laws of 1873 and 1890 compelling the
purchase of silver by the Government
which not only furnishes new treasury
obligation upon which its gold could be
withdrawn, but so increased the fear OF
| an overwhelming shood of silver and a
| forced descent to silver payments that
even the repeal of these laws did not en-.
tirely cure the evils of their existence.
| Free Silver Coinage.
| While l was endeavoring to make q
| plain statement of the disordered condi
ton of our currency and the present dan
gers menacing our prosperity and to sug
| gest a way which leads TO a safer fnan
cial system, have constantly had in mind
the fact that many of my countrymen
whose sincerity l do not doubt insist that
the cure for the ills now threatening us
may be found in the single and simple
remedy of the free coinage Of silver. They
contend that our mints shall be at once
| thrown open to the free, unlimited and in
dependent coinage of both gold and silver
dollars, of full legal tender quality, re.
| gardless of the action of any other Gov
ernment and in full view of the fact that
the ratio between the metals which they
suggest calls for 100 cents worth of gold
in the gold dollar at the present standard
and only 30 cents in intrinsic worth oi
silver in the silver dollar.
Were there infinitely stronger reasons
than can be adduced for hoping that sucl
action would secure for us bimetallit
currency moving on lines of parity, an ex.
pertinent so novel and hazardous as thai
proposed might well stagger those who be
lieve that stability is an imperative condi
ton Of sound money. No government, nc
| human contrivance or act of legisla tior
has ever been able to hold the two metals
together in free coinage at ratio appre
ciably different from that which is es
tablished in the markets of the world
Those who believe that our indepehden,
free coinage of silver at an artificial
ratio with gold Of IL to l would restore
the parity between the metals, and con
sequently between the coins, oppose an
unsupported and improbable theory tc
the general belief and practice of Other
nations, and to the teachings of the wisest
statesmen and economists of the world
both in the past and present, and what
is far more conclusive. they run counter
to their own actual experiences.
Twice in our earlier history our law
makers, in attempting TO establish bi
metallic currency, undertook free coin