The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-07-24
ABOLISH THE GOLD RESERVE.
(Moorhead News.)

tMoorhead News.)
The 800, 900 gold reserve is
maintained in the treasury Of the
United Stated for the purpose, it is
claimed. Of redeeming notes that may
be presented. The original purpose
Of this fund Of gold was to support the
greenbacks, OF which there is now
outstanding some Sac, 200, 900. On
the accepted theory that metallic or
redemption money will support from
three to four times its volume, this
gold fund Is adequate. but the origin.
al purpose has been extended, under
the policy OF the administrations OF
Harrison and Cleveland, so that the
gold fund Is held subject to the re-
demption Of any government paper,
all forms amounting to some u .OOO,-
OO0,OUO. Such construction there
fore makes 81 of gold stand sponsor
for $40 in paper. Now it will be ad-
mitted that any disturbance Of the
confidence of the people as to the
ability or intention Of the govern
ment to redeem paper on demand
would create run which would draw
all the 500, 1000. 900 Of gold out OF the
treasury in day or two and leave
$500. 900, 600 Of paper outstanding. and
under such circumstances there would
be an immediate aud heavy deprecia-
ton in it's value.
This raises the inquiry as to what it
is that supports the confidence of the
people under which they accept any Of
the various forms OF paper money at
their face value. It cannot be the lit
tie hoard OF gold in the treasury, for
they know that after thises hould be
paid out the government would still
owe nine-tenths Of its debt. Nine
tenths or nine dollars out Of every ten
that each individual possessed would
be irredeemable. lit is not the gold re-
serve that supports public confidence,
what is it, and what is the use of
maintaining the reserve at such a
frightful cost? In our opinion public
confidence in the ability of the United
States government to make good its
promises Is supported by the knowl-
edge OF the people that the resources
of that government are practically
unbounded. That is to say, while the
people know that the actual redemp-
tion of the paper on demand is an ut.
ter Impractical ility, either with the
so-called gold reserve fund intact or
without, they know that should the
government put its powers of taxation
into play it could raise gold or other
acceptable property in sufficient guam
tity to pay all It's just claims In rea-
sOnable time, and that is all that is
required between individua in order
to establish and maintain credit. II
this is 81, and we beg to be shown
where 1T is wrong, the gold reserve
has no utility except to make basis
for gold gamblers to juggle with and
make millions out of it for their own
benefit, and therefore it becomes a
burden upon the people. We believe
that If no effort whatever was made
by the treasury to maintain this fund
paper money would be as good as it is
now, al we are inclined to believe
that gold would circulate more freely
than now. It is because dealers in
gold can deplete the treasury gold re-
serve at will, and the superstition
that it is reduced a general collapse
will ensue, that creates the disturb
ance.
The gold reserve should be abolish
ed. 1t any law requires 500, 200, 900 of
gold to be on deposit in the United
States treasury it ought to be forth
with repealed. This large amount OF
money ought to be in circulation.
The people will not demand redemp-
tion of paper as long as their conf
dence in the ability of the govern
ment to make good its promises con-
tinues, and this confidence is based on
the powers of the government to raise
money by taxation and not upon an
uncertain and Inadequate accumula-
ton of gold lying idle in vault. The
demand for redemption In the past
has come from agents of the gold
gamblers who were engaged in the
patriotic work of embarrassing the
government in order that they might
add new millions to their accumula-
tions. Such demands ought to be
met with fiat and peremptory refusal.
Do away with the gold reserve and
this profitable psstime will be brought
to an end.