St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-29


when presented, and in fact. redeemed
and paid i'll gold, they shall be reissued.
Thus the same notes may do duty many
times in drawing gold from the treas
ury; nor can tine process be arrested
as long as private parties can
profit or otherwise see an advantage IN
repeating the operation. More than
$780, 0G0, 000in these notes have already
been redeemed in gold, and notwith-
standing such redemption they are all
still outstanding. Since the I7th OF
January, 1894. our bonded intereSt-bear-
ing debt has been increased S1O0, ,OOO.00O
for the purpose Of obtaining gold TO re-
plenish our coin reserve. Two issues
were made, amounting to $50,0OO,0O0
each. one in January and the other in
November. AS result Of the first issue
there was realized something more than
S5S. 900, 900 in gold. Between that issue
and the succeeding one in November,
comprising period of about ten months,
nearly S103, ,0o0,O0O in gold were drawn
from the treasury. This made the see.
ond issue necessary, and upon that more
than sos, 600, 900 in gold has been real-
lied. Between the date of this second
issue and the present time, covering a
period of only about two months, more
than S6S, 900, 900 i'll gold have been
Withdrawn From the Treasury.
These large sums of gold we're cX
pended without any cancellation OF gov
erument obligations, or in any per
manent way benetiting our people or
improving our pecuniary situation. The
financial events of the past year sug-
gest facts and conditions which should
certainly arrest attention. More than
one hundred and seventy-tWo millions
fNf H,iI iIor in haV fiI.1N
of the treasury during the year for the
purpose of shipping abroad or boarding
at home. While nearly one hundred
and three millions of the same were
drawn out during the first ten months
of the year, . sum aggrtgatlng more
than tWo-thirdS of that amount, being
about siXty-nine millions, was drawn
out during the following two months,
thus indicating a marked acceleratlon
of the depicting process with the lapse
of time. The obligations on which this
gold has been drawn from the treasury
are still 0utStan ding, and are available
for use i'll repeating the exhaustive
operation with shorter intervals. Per-
pleXitieS accumulate. Conditions are
| certainly Snpervening, tending ~ make
bonds which may be issued to replenlsh
our gold less useful for that purpose. An
adequate gold reserve is in all circum-
stances absolutely essential to the uD-
holding of our public credit and to the
maintenance of our high national char
acGer. Our gold reserve has again
reached such stage of dimlnutlOn as
to require its speedy reinforcement.
The aggraVatiOnS that must inevitably
follow present conditions and methods
will certainly lead 10 misfortune and
loss, not only to our national credit and
,iol
but to those of our people who seek en-
| plOyment as means OF livelihood and
to those whose only capital is their daily
labor 1t witt hardly do to say that
simple Increase Of revenue will cure cur
troubles. The apprehension now exist
ing and constantly increasing as to our
financial ability does not rest upon
calculation of our revenue. The time
has passed when the eyes Of investors
abroad and our people at home were
fixed upon the revenue OF the govern
ment. Changed conditions have at
lracted their attention 10 the gold OF the
government
There Need Be No Fear
that we cannot pay our current eX-
penSes with such money as we have.
There is now in the treasury q comfor-
table surplus of more than $63. 000, 900.
but it is not in gol'l, and therefore does
not meet our difficulty. | cannot see
that difference of opinion concerning
the extent to which silver ought to be
coined Or used i'll our currency should IT,
terfere with the cOunSelS of those whose
duty it is to rectlfy evils now apparent
in our financial situation. They have
10 consider the question OF national
credit, and the consequences that will
follow from its, collapse. Whatever
ideas may be insisted upon as TO silver
or bimetallism, a proper solution of the
question now pressing upon US only re-
QuireS 4 recognition of gold rs well as
silver, and concession of its import
ancP. rghtfully or WrOngfully acquired,
as basis Of national credit, necessity
in the honorable discharge OF our obli-
cations payable in gold and a badge OF
Solvency. L do not understand that
the real friends OF silver desire con-
dition that might follow inaction or
the present eXigency if il should result
in the entire Punishment OF gold from
our financial and currency arrange
mentS. Besides the treasury notes,
which certainly should be paid in gold.
amounting to nearly $500, 600, 900, there
VIII fall due in 1904 500, ,0C0. 600 of bonds
issued during the last year, for which
we have received gold, and in 1907
nearly S60G,000.000 of 4 per cent
bonds issued iii 1877. Shall the pay
ment of these obligations In gold be re-
pudiated? If they are 10 be paid in
such manner as the preservation OF
our national honor and national sol
Vency demands we should not destroy
or even imperil our ability to supply
ourselves with golG for that purpose.
While l am not untriendly to silver,
and while desire to see it recognized
to such an extent as is consistent with
financial safety and the preservation of
national honor and credit, | am not
willing to see gold entirely banished
from our currency and finances.
20 Avert Such a Consequence
1 believe thorough and radical remedial
legislation should be promptly passed.
| therefore beg the congress to give
the subject immediate attention. In my
opinion, the secretary Of the treasury
should be authorized to issue bonds of
the government for the purpose of pro-
curing and maintaining a sufficient
gold reserve and a redemption and can
collation. OF the United States legal
tender notes and the treasury notes
issued for the purchase of silver under
the law Of July IA, 1880. We should be
of issuing bonds to procure gold to be
Immediately and repeatedly drawn out
on these obligations for purposes not
related to the benefit of our government
or people. The principal and interest
of these bonds should be payable on
their face in gold because they should
be sold only for gold or its representa-
tive, and because there would now
probably be difficulty in favorably dis
posing of bonds not containing this stip-
ulatiOn. l suggest that the bonds be
issued in denominations of twenty and
fifty dollars and their multiples, ana that
they bear interest at arate not exceeding
3 per cent per annum. l do not see
why they should not be payable fifty
years from their dates. We of the
present generation have large amounts
to pay II we meet our obligations, and |
long bonds are most salable. The Sec
retary of the treasury might we'll be- |
permitted at his discretion to receive en-
the sale of bonds the legal tender ana |