Capital journal. (Salem, Or.) 1893-1895, 1895-08-28
WEDNESDAY,, AUGUST 81, 1895
A Portland correspondent who writeI

credit OF the government WIFI i1s naV
power. The fiat power Of the goverp-
ment is undoubtedly great factor In
q currency system. The people are apt
TO conclude that whatever Is stamped
as money by the government will go
az money. No doubt the confidence Of
the people In their government is the
greatest element Of strength and SOL
vency for any currency system. But
the fat Of the government and the
confidence Of the people are both de-
pendent upon the compliance Of the
government with certain elementary
principles Of finance. One Of these l.
that all paper must be redeemable 10
metallic money of certain intrinsic
value. This our correspondent denies,
He asserts that more intrinsic value II
given by the stamp Of the government
than by the commercial value that
inheres Ia the metal Of which the coins
are made. This Is the old greenbhck
idea, But as we understand II, the fiat
Of the government was only made per-
feet when 1t made Its credit perfect,
and was prepared TO redeem every one
Of them IN coin. At that time silver was
still counted by the government and
by the people as metallic redemption
money along with gold. There was
some silver among the people and some
In the banks aud In the hands Of The
government. But whatever there was,
II was redemption coin, equal with
gold. The bullion was at premium.
n that we're the case now there would
be no free coinage question to settle, as
no silver would be presented for coin
age. Now all our silver and our silver
paper money is not redemption money
but token and credit money which the
government is compelled to redeem in
gold. On 500, O,OOO,O 900 Of gold reserve,
originally intended to guarantee the
redemption OF the greenbacks amount
ing to $685., 200, 900, the government Is
virtually carrying credit currency
system in volume equal to about
$1,000, ,0)o,0)), or sixteen dollars Of
currency to one dollar Of redemption
money.
In addition TO this unusual imitation
of currency the governments Is conduct
Ing tariff system that Ia creating a
deficit of about 500, 100000 year. 1t
must borrow gold TO defray the ordi-
nary expenses Of government. Ifthere
were y surplus Of fifty or hundred
millions In the treasury, no one would
hear OF any run on the currency, or OF
any attempt TO drain the gold out OF
the treasury. The intrinsic value OF
the money OF our country would not be
called In question. The frat thing Ia
be done Is TO regulate the receipts OF
the treasury 30 the income will be
larger than the outgo. Stop that leak
and you have done half towards
restoration OF our finances, When we
have TO borrow gold to pay the running
expenses Of the government, 1t stands
to reason that our currency that is all
made redeemable In gold will also be-
come n burden on the government,
Natural conditions all over the world
seem TO be uniting to break down ouI
single gold standard system that we
have started In on. Cleveland, TO main
tain his Wall street friends. must turn
his back on the greenbacks and on the
silver money. He has disoredited them
by n tariff system that leaves him
without revenues. Before he can dc
anything for our shrinking totterinl
patchwork money system he mus
bolster up his empty treasury. He Il
doubly In the clutches Of the golC
syndicate, II he had tue courage TO say
al will not redeem silver certificates II
anvthIng hut silver dollars "a the Law
says will not receive anything bu
gold for customs duties; l will not Issue
any bonds except to the people, inter
est aud principal payable only Il
American citizens; II Wall street wants
to do anything 70 bring on black Fri
day let them do It at their peril" h'
would bo In . far different position Il
appeal to the patriotism Of the Sountr,
-. ....a~suna.,t A.. lfa tls...