Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-17
FAILS TO EXPLAIN.
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az safe and profitable investments was at
once restored to such an extent that they
oeased to be returned to our market Tor
Gale and very considerable demand for
them Was created abroad; but the most
Gratifying evidences of improvement in
Gur CONDITION were afforded by the prompt
revival Of business among our own PEG
nile. the increased activity and extension
of our domestic industrial and commercial
operations, the rise in the prices OF our
principal agricultural products, and the
general feeling Of relief and security which
became apparent in every part of the
country. These encouraging indications
of increasing prosperity still continue, and
II Ia reasonably certain that, IL our progress
is not checked by repetition Of large de
mapds upon our resources or by failure
to meet the Just expectations Of the people
in respect to the reformation Of our fina nee
system, we are entering upon an era Of
material growth and development not sur
passed in our history.
ssBut,' adds Secretary Carlisle, our
further progress toward complete restora-
tion of confidence and prosperity is seri-
ously impedcd by the defects in our cur
rency laws, and he proceeds to discuss the
remedy as follows:
Our past experience with the United
States notes and the treasury notes mas
clearly shown that the policy Of attempt
ing to retain thegc obligations Of the gov
eminent permanently ~ part of our cir
cu!ating medium, and to redeem them In
coin on presentation and reissue them al
ter redemption must be abandoned, or
that such means must be at once provided
ms will have a tendency TO facilitate the
efforts Of the secretary to accumulate ana
maintain coin reserve sufficient IN
amount to keep the public constantly as
sured of the stability Of our entire volume
of currency and of our ability at all times
to preserve equality In the exchangeable
value of its various parts.
The issue OF bonds to procure coin for
the reserve. which is the only effectual
method now available under the ANVIL,
unless the conditions which have already
been developed by the present policy are
radically changed, ultimately result in
$ erection of public debt much larger
than would be required TO retire and can
Gel all the notes and the annual interest
charge will be much greater than it would
he necessary to incur on n new class Of
bunds adapted 10 the present circum-
stances of the government and the well.
known preferences OF investors
If, however, an attempt Is to be made
to keep the United States notes and treas
ury notes permanently In circulation, by
r, issues after redemption. and the govern
ment Is to be permanently charged with
the duty of sustaining the value of all our
currency, paper and coin alike, the con
clusiop can not be avoided that the policy
of issuing bonds for the accomplishment
of these purposes must also become perlna-
nent and such additional powers must be
conferred upon the secretary as will en-
able him to execute the laws relating to
these subjects with the least possible dis
turb snce of the business affairs of people
and the least possible charge upon the
treasury am thoroughly convinced that
this policy ought not to be continued but
that the United States notes and treasury
notes should be retired from circulation q
the earliest practicable day, and that the
governmc lent should be wholly relieved
from the responsibility of providing a
credit currency for the people. If our
legal notes were retired there is abundant
reason to believe that II very large amount
Of gold which has been excluded from the
paper in our circulation would promptly
return to take its place in our currency
and constitute n permanent part Of our
medium of exchange The retirement and
cancellation of the legal tender notes
would not necessarily produce any con
traction of the circulation, and if such e
result should follow and continue for any
considerable period 1t would he demon
stration of the fact that the volume of the
currency previously existing WAS not
needed in the business of the people, for
whenever the volume is reduced below the
actual requirements Of the treasury de
partment, the deficiency will he supplied
either from abroad In exchange for our
productions and securities or by the banks
at home or by both After discussing at
length the disturbance To the currency
caused by the silver purchasing act, Secre
tary Carlisle continues rs follows;
1.-The great loss Of revenue. instead of
being the cause of our financial difficulties.
is one of the effects produced by n defec
tive currency system and failure to rccog
nize this important fact will lead US far
astray in our search for an adequate
remedy IL is true that the tariff act of
1890, which remained in force until after
the close of the fiscal year 1894 had greatly
reduced the revenue derived from customs,
and that the expenditures of the govern
mcnt were increased from 1916, 04o. 10. 66
during the fiscal year 1890, to 1898, Az.
95i. 40 during the fiscal year 1898; still 1t
is not probable that there would have been
any considerable excess of expenditures
over receipts If tho business Of the people
had not been interrupted by the disturb
anccs growing out of the unsatisfactory
condition of our currency.
Remedies which might have been
more or less effective under other circnm
Stances cannot be in the least degree effec
tive now, and 1t would be futile and dan
gero6s at this time to attempt a erection
of our financial disorders otherwise than
by total removal of their causes.
No surplus revenue, however large,
could extricste us from our present diff
culties or give assurance of safety in the
future unless 1t should be reruirt TO he
paid In gold under a system which would
exempt the government from the obliga-
tion to furnish the gold when demanded