The record-union., 1895-01-29

were Fl Xed on the revenues of the Gov
ernment. The changed conditions have
attracted their attention to the gold of the
Government. There need be no fear that
we cannot pay our current expenses with
such money as we have. There is now in
the Treasury a comfortable surplus of
more than S63, ,OOO, 900, but IL is not.ln gold
and therefore does not meet our difficulty.
[ cannot see that the differences of
opinion concerning the extent which
silver ought to be coined or used in our
currency should interfere with the coun-
sells OF those whose duty it is to rectify
the evils now apparent in our financial
situation. They have to consider the
question OF the national credit and the
consequences that will follow from its
collapse. Whatever ideas may be insisted
as to silver or bimetallism the proper
solution OF the question now pressing
upon us only requires the recognition of
gold as we'll as silver and the concession
OF It's importance, rightfully or wrong
fully acquired, as the basis of material
credit necessity in the honorable dis
charge Of our obligations, payable in
gold, and badge of solvency. | do not
understand that the real friends Of silver
desire the condition that might follow in
action or neglect to appreciate the present
eXigency II 1t should result in the entire
Punishment of gold from our financial
and currency arrangements.
Besides the treasury notes.. which GER
tainly should be paid in gold, amounting
to $50,000,0O0, there viii fall due in 1904
Sl00, 100000, issued last year, for which
we have received gold, and in 1907 nearly
5000, 100000 4 per cent. bonds, issued in
1887, will fall due. Shall the payment of
these obligations in gold be eradicated
If they are to be paid in such manner
as the preservation of our national honor
and national solvency demands, we
should not destroy or even imperil our
ability to supply ourselves with gold for
that purpose
While I am not unfriendly to silver,
and while L 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 will
ing to see gold entirely banished from
our currency and finances. TO avoid
such consequences I believe thorough
and radical remedial legislation should
be promptly passed. L therefore beg
Congress to give the subject immediate
attention.
In my opinion, the Secretary of the
Treasury should be authorized to issue
bonds of the Government tor the purpose
OF procuring and maintaining sufficient
gold reserve and the redemption of
United States legal tender notes and
Treasury notes, issued for the purchase of
silver. under the law Of July II, 1890. We
should be relieved from the humiIiating
process of issuing bonds to procure gold
to be Immediately and repeatedly drawn
on these obligations for the purposes not
related to benefit our Government or our
people. The principle and interest of
these bonds should be payable on their
face in gold, because they should be sold
for gold or It's representative, and because
there would now probably be difficulty
III favorably disposing OF the bonds not
containing this stipulation. l suggest
that bonds be issued in the deuomina-
tions of $50 and $50 and their multiples,
and that they bear interest at the rate of
not exceeding per cent. per annum. l
do not see why they should not be pay
able for fifty years from their date. We,
of the present generation, have large
amounts to pay il we meet our obliga
tions, and long bonds are the most
salable
The Secretary of the Treasury might
well be permitted at his discretion to re-
ceiye on the sale of the bonds legal tender
and Treasury notes, TO be retired, and,
OF course, when they are thus retired, or
redeemed in gold. they should be can
ceied. These bonds, under the existing
laws, could be deposited by the national
banks as security for circulation, and
such banks should be allowed to issue a
circulation up TO the face value of these
or any other bonds so deposited except
the bonds outstanding bearing only : per
cent. interest, and which sell in the
market at less than par. The national
banks should not be allowed to take out
circulating notes of less denomination
than So and when such as now are out
standing reach the Treasury, except for
redemption and retirement, they should
be Cancelled and notes of denomination
OF SO and upward issued in their stead.
Silver certificates of denominations of
SO and upward should be replaced by
certificates Of denominations under $40.
AS a constant means for the maintenance
of reasonable supply of gold in tile
Treasury, our duties on imports should
be paid in gold, allowing all other dues
OF the Government to be paid in any
other form OF money. L believe in all
provisions retiring bearing
legal tender notes. In point of fact, how
ever, these notes have burdened US with
large load Of interest, and it is still ac-
cumulating.
The aggregate interest on the original
issue of bonds proceeds, which in gold
constituted a reserve for the payment of
these notes, amounted to S1O,326, go on
January l, 1895, and the annual charge
for interest on these bonds and these
issues for the same purpose [ have sug-
gested should be embodied in our laws,
ii we are TO enjoy q complete reinstate-
ment OF our sound financial condition.
They need not interfere with any cur
rency scheme providing for an increase
in the circulating medium through the
agency of the national or State banks,
since they can easily be adjusted to such
a scheme. Objection has been made TO
the issuance OF Understanding obIiga-
tions for that purpose.
The reluctance to issuing more bonds
in the present circumstances and with no
better results than have lately followed
that course has been expressed. | cam
not, however, refrain from adding to the
assurance of my anxiety to cooperate
with the present Congress in any reason
able measure of relief, expressing my de-
termination to leave nothing undone
which furnishes hope for improving the
situation or checking the suspicious of
our disinclInation or disability to meet
with strictest honor every national obli-
CATION. GROVER CLEVELAND.
Executive Mansion, January 2S, 1895