Highland recorder. (Monterey, Highland County, Va.) 1877-1972, 1895-02-08
OUR FINANCES.
The President Sends a Message
10 Congress-
BONDS NEEDED At ONCE.
Business Disaster Should BE
Averted at Once-Tlme for Patrl-
otic Duty-The Retirement OF


otIc Duty-The Retirement OF
Currency Notes Urged.
To the Senate and House of Representatives.
In my last annual message l commended
ia the serious consideration OF the congress
tba consideration of our National finances:
and in connection with the subject fndorsed
the nIan of currency legislation which at that
lime seemed 10 furnish protection against
impending danger. This plan has not pesn
approved by the Congress.
In the meap time the situation mas 50
changed and TIE emergency now appears 50
threatening that I de'm il my duty 10 aSk at
the hands Of the Legislative Drancn Oh tue
Government such prompt and effective action
90 will restore confidence in our financial
soundness and avert business disaster ana
universal distress among our people.
Whatever may be the merits OF the plan
outlined in my annual message as remedy
for ills then existing and as safeguard
against the depletion Of the gold reserve
then in the Treasury, am now conVlne9u
that its reception by the Congress ana our
present advanced stage OF financial per-
nleritv necesgitates additional or different
legislation.
with natural resources unlimited in variety
and productive strength, ami Win peopie
whose activity and enterprise seek only
fair opportunity to achieve National success
and Greatness, our progress should not be
cheoEed bv a false financial policy and
needless disregard of sound momentary laws,
nor should the timidity and fear which
they engender stand in the way OF our pros
tt is hardly disputed that this preiica-
ment confronts US today. Therefore, no
one in any degree responsible for the max
inc and execution Of our laws should fail to
see 3 patriotic duty in honestly AMI sincere
ly attempting to relieve the situation
Manifcstlythis effort will not succee un-
less It is made untrammelled by the preJu-
dice OF parts lnship and with steadiaSt
administration to resist the temptation 10
accomplish party advantage. we may Wen
remember that il we are Threatened wife
financial difficulties all our people in every
station OF life are concerned, an surely
those who suff .r will not receive the promo
tion of party interests IS an excuse Tor per-
hitting our present troubles 10 advance 10 a
disastrous conclusion.
II is also of the utmost Importance that
we approach the study OF the problems pre-
sented as free as possible from the tyranny
of preconceiyed opinions to the end that IN
a common danger We nay be able to S ,ek
with uncloudel vision safe ana reasonable
protection.
The real trouble which confronts US con-
sists in a lack OF con6ience, wide spread
and constantly increasing, in the contlnu-
ing ability or disposition Of the Government
to pay its obligations In gold.
Tr.s lack of confldence grows to Some ex-
ten1 out OF the palpabe aud apparent en-
berrassment attending the efforts OF the
Government under existing laws to procure
gold. and to greater extent out OF the I'M
possibility of either keeping 1t In .-.o Treas
ury or canceling Obligations by its expendl'
ture after 1t is obtained.
The only way lett open to the Govern
ment for procuring gold is by the issue and
sale OF its bonds. The only bonds that can
be issued were authorizsd nearly twenty-five
wears ago, and are not we'll calculated TO
meet our present needs.
Among other disadvantages they are made
navable in coin instead Of specifically in
| gold, which in existing conditions detracts
largely and In an increasing ratio from their
6esirability as investments. II Is BY No
means certain that bon of'tbis description
can much longer be disposed Of at price
creditable 10 the financial character OF our
Government.
TIE most dangerous and irritating feature
OF the situation, however, remains to be
mentioned. 1t is found III the means D\
which the wreas8rJ is despoie1 OF the gold
thus obtained without cancelling single
Government obligation, and solely for the
benefit of those who fini proflt in shipping
II abroad or whose fears induce them tc
hoard it at home.
We have outstanding about fiye hundred
millions o. currency notes OF the Govern
ment for which gold may be demanded
4, h.. lam
when presented AMI in fact rSieemel ana
paid in goli they shall b. reissued.
Thus the same notes may do duty many
times in drawing gold from the Treasury
nor can the process be arrested as long a!
private parties for prodt or Others see ri
advantage in repeating the operation. Mof'
than three hundred millions of dollars II
lhese notes have already been redeemed IL
gold and Notwithstanding such redemption
they are still outstanding.
Since the 17th day Of January, 1874, OIL
.)nded interest bearing debt has been III
:teassd 300, 1000, 900 for the purpose oil Oh
taiping gold to replenish our coin reserve.
Two issues were made, amounting to S5O
900 OOe each-one in January, and the othe
in November As a result OF the first issue
there was realized something more tha
S58. 900 900 in gold. Between that issue aD
the succeeding one in November, compri:
ing n period OF about ten months, neari
&103, ,0G0, 900 In gold were drawn irom th
Treasury.
This made tho second issua necessary
and upon that more than $5S, 900, 900 in gol
was again realized. Between the date c
this second issue and the present time, coy
erng period CT only about two month!
more than 500 9,OOO, 900 OF gold have bee
drawn from the Treasury.
These large sums of gold were expen1e
without any cancellation OF Government OF
legations, or in any permanent way peneh
ing our people or improving our pecuhiar
situation.
The financial events Of the past year sug
cect facts and conditions which Should eel
tainly arrest attention.
More than one hundred and seventy-tw
millions OF dollars in gold have been uraW
out of the Treasury during the year tor ID
purpose of shipment abroad or boarding
home.
While nearly one hundred and three mi
lions of this amount were drawn out durin
the first ten months of the year, sum a.
pregating more than two-thirds or IN
amount. being about sixty-nne millions, vi
drawn out during the following two month
thus indicating a markell acceleration
the depicting process with the lapse oil Tim
The obligations upon which this gold
been drawn from the Treasury are still on
standing and are available for use in repa
ing the exhausting operation with short
intervals as our perplexities accumulate.
Conditions are certainly supervening ten
ing to make the bonds which may be issu
TO replcn!sh our goll less useful for III
purpose.
An adequate gold reserve is in al circu
> stances absolutely essential 10 the upho
, ing of our public credit and 10 the main
nance OF our high National character.
Icannot see that the differences OF opinl
concerning the extent 10 which silver Oue
TO be coined or used in our currency shog