Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1895-02-01
FRIDAY MORNING, FEB. |. 1895.
THE FINANCIAL BLOCK.

THE FINANCIAL BLOCK.
It is very strange that congress will do
absolutely nothing on the question OF
finance. 1t is very clear that there will
have to be another issue of bonds to keep
I'D the gold reserve in the Treasury OIL the
government will go into default. In his
message on December Sd President Cleve-
land plainly stated the case this way:
It is perfectly and palpably plain that the
only way under present conditions by which
this reserve when dangerously depleted can
be replenished is through the issue and sale
of the bonds of the Government for gold; and
vet Congress has not only thus far declined
to authorize the issue of bonds best suited to
such purpose, but there seems disposition
in some quarters to deny both the necessity
and power for the issue of bonds at all.
cannot for moment believe that any of
our citizens are deliberately willing that
their Government should default in its pecu-
mary obligations or that its financial opera
lions should be reduced to silver basis. At
any rate should not feel that my duty was
done if 1 omitted any effort could make to
avert such calamity. AS long, therefore,
as no provision is made for the final redemp-
ton or the putting aside Of the currency OBJ
legations now used to repeatedly and constant
ly draw from the Government its gold, and
as long as no better uthority for bond issues
is allowed than al present exists, such author
ity will be utilized whenever and as often as
it becomes necessary to maintain sufficient
gold reserve, and in abundant time to save the
credit of our country and make good the finan-
cial declarations Of our Government.
Under the law under which Secretary
Carlisle is acting, passed years ago, the
bonds now issued bear Al or 5 per cent. in
terest, while if congress would authorize
the issue of % OF per cent. bonds to re-
deem the greenbacks and treasury notes,
the trouble would end. AS long as congress
refuses to act, just so long will the gold
flow to Europe.
7. S. Since the above was written, Mr..
cleveland. on Monday sent in a message
to Congress. He calls attention to the
fact that:
More than one hundred and seventy-two
millions of dollars in gold have been drawn
from the Treasury during the year for the
purpose of shipment abroad or boarding at
home. While nearly one hundred and three
millions of this amount were drawn out dur
ing the first ten months Of the year, sum
aggregating more than two-thirds OF that
amount, being about siXty-nine millions,
was drawn out during the following two
months. thus indicating marked accelera
ton of the depicting process with the lapse
of time.
And adds this
!. Besides the treasury notes which certainly
should be paid in gold, amounting to nearly
five hundred millions of dollars, there will
fall due in 1S0a one hundred millions of
bonds issued during the last year for which
we have received gold, and in 1907 nearly
SIX hundred millions of four per cent.
bonds issued in 1877. Shall the payment of
these obligations IN gold be repudiated? If
they are to be paid in such manner as the
preservation of our snational honor and ma
tional solvency demands we should not de-
stroy OF even impeTsl our ability to supply
ourselves with gold for that purpose.
While I am not unfriendly 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 geld entirely
banished from our currency and finances. To
avert such a consequence believe thorough
and radical remedial legislation should be
promptly passed. l therefore beg the Con-
gress to give the subject immediate attention.
AS the legislative remedy to be applied
he suggests this:
In my opinion the Secretary of the Treasu.
ry should be authorized to issue bonds of the
government for the purpose of procuring and
maintaining sufficient gold reserve and the
redemption and cancellation of the United
States legal tender notes and the Treasury
notes issued for the purchase of silver under
the law Of July 18th, 1890. We should be re
lieyed from the humiliating process of issu
ing bonds to procure gold to be Immediately
and repeatedly drawn out on these obligs
ton, for purposes not related to the benefit of
our government OF our people. The princi-
pal and interests Of those bonds should be
payable on their face in gold. because they
should be sold only for gold OF its represen-
tative and because there would now probably
he difficulty in favorably disposing of bonds
not containing this stipulation. l suggest
that the bonds be issued In denominations Of
twenty and fifty dollars and theif nultiples
and that they bear interest at a rate not aE-
ceedlng three per cent. per annum. l do not
see why they should not be payable fifty
years from their date. We Of the present
generation have large amounts to pay if we
meet our obligations and long bonds are most;
salable. The Secretary of the Treasury
might we'll be permitted at his discretion to
receive on the sale Of bonds the legal tender
and treasury notes to he retired and, of
course, when they are thus retired or redeem
edsjn gold they should be cancelled.
These bonds under existing laws could be
deposited by national banks as security for
circulation, and such banks should be al low
ed to issue circulation mp to the face value
of those OR any other bonds outstanding bear
ing only two per cent. interest and which sell
in the market at less than par.
National banks should not be allowed to |
take our circulating notes Of a less denomiua-
ton than ten dollars, and when such as are
now outstanding reach the Treasury, except
for redemption and retirement. they should
be cancelled and notes of the denomination