The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-12-05

lieved from maintaining gold reserve
under conditions that constitute ii the
barometer of our solvency, and if our
treasury should no longer be the foolish
purveyor of gold for nations abroad or
for speculation and boarding by our citi-
zens at home, | should expect to see
good results and normal functions in the
business affairs of the country, as it
would cease to be an object attracting
the timid watch of our people and excit-
ing their sensitive imagination. | do not
overlook the fact that cancellation of the
treasury notes issued under the silver
purchasing act of 1890 would leave the
treasury in the actual ownership of suff-
cient silver, including seigniorage, to
coin nearly $17S,000,000 in standard dol
lars. 1t is worthy of consideration
whether this might not from time to
time be converted into dollars or frac-
tional coin and slowly put into circula-
ton, as in the judgment of the secretary
of the treasury the necessities of the
country should require. Whatever is at
tempted should be entered upon fully ap-
preciating the fact that by careless, easy
descent we have reached dangerous
depth and that our ascent will not be
accomplished without laborious toll and
struggle. We shall be wise if we realize
that we are financially i'll and that our
restoration to health may require serious
treatment and unpleasant remedies.
AFFECTING NATIONAL CREDIT.
In the present stage of our difficulty it
is not easy to understand the amount of
our revenue receipts that directly effects
it. The important question is not the
quantity of money received in revenue
payments, but the kind Of money and our
ability to continue in sound financial con-
ditiop. We are considering the govern
ment holding of gold as related to the
soundness of our money and as affecting
our national credit and monetary
strength. If our gold reserves had never
been impaired, if no bonds had been is
sued to replenish, if there had been no
fear and timidity concerning our ability
to continue gold payments, if any part
of our revenues were not paid in gold,
and if we could look to our gold receipts
as means of maintaining gold reserve,
the amount of our revenues would be an
influential factor in the problem. But
unfortunately all the circumstances that
might lend weight to this consideration
are entirely lacking. In our present pre-
dicament no gold is received by the gov
eminent in payment of revenue charges,
nor would there be if the revenue were
luCIcuscu. IHc ItNtiptS VI tic lTtubuly
when not in silver certificates, consist of
United States notes and treasury notes
issued for silver purchases. These forms
of money are only useful to the govern
ment in paying its current ordinary eX-
penses and its quantity in government
possession does not in the least contribute
toward giving us that kind of safe
financial standing or condition which is
built on gold alone.
If it is said that these notes, if held by
the government can be used to obtain
gold for our reserve the answer is easy.
The people draw gold from the treasury
treasury notes, but the proposition that
the treasury can on demand draw gold
from the people upon them would be re-
garded in these days with wonder and
amazement. And, even If this could be
done, there is nothing to prevent those
thus parting with their gold from regain.
ing it by the next day or the next hour
by the presentation of notes they received
in exchange for it. The secretary of the
treasury might use such notes taken
from surplus revenue, to buy gold In
| the market. OF course he could not dc
| this without paying premium. Private
holders Of gold, unlike the government
having no parity to maintain, would moi
be restrained from making the best bar
gain possible when they furnished goiC
| to the treasury. But the moment the
secretary of the treasury bought gold oil
any terms above par, he would establish
general and universal premium upon it
thus breaking down the parity between
gold and silver, which the government
is pledged to maintain, and opening tho
way to new and serious complications
| In the meantime the premium woult
| M In Cto nd 4bn Ip,.r
spectacle might be presented of dealer
selling gold to the government and will
United States notes or treasury notes II
his hand Immediately clamoring for III
return and resale at higher premium
1t might be claimed that large revenu,
and reduced receipts might favorably
affect the situation under discussion by
affording an opportunity of retaining thes,
notes in the treasury when received, ant
thus preventing their presentation fo
gold. Such retention to be useful, ough
to be at least measurably permanent ant
this is precicely what is prohibited so fal
as United States notes are concerned
BY the law of 1878, forbdding thci
further retirement, that statute, in s,
many words, provides that these note
when received into the treasury and be
longing to the United States, shall b
paid out again and kept in circulation
1t will, moreover, be readily seen that tn
government could not refuse TO pay on
United States notes and treasury note
in current transactions when demanded
and insist on paying out silver alone am
still maintain the parity between tina
metal and the currency representing gold
besides, the accumulation in the treasur.
of currency of any kind, exacted fror
the people through taxation, is justl.
regarded as an evil and 1t can't process
far without vigorous protest against M
justi6able retention of money from tb
bushes of the country and denunciatioi
of q scheme of taxation which provo
itself to be unjust when 1t takes frOn
the earnings and income of the citizci
money so much in excess Of the needs o
the governments support that larg
amounts can be gathered and kept in tn
treasury. Such d condition has hereto
fore, in times of surplus revenue, led tn
government to restore currency to tn
people by the purchase of its MINIATURES
bonds at large premium and by
large increase of its deposits in Nationa
banks, and we easily remember that TIL
abuse of treasury accumulation has ma
tured most pursuasive argument in fayo
of legislation radically reducing our tarii
taxation.
Perhaps it is supposed that suffcien
revenue receipts would in sentiment0
way improve the situation by inspiring
confidence in our solveIefy and allayinl
the fear of pecuniary exhaustion. AM
yet all through our struggles to maintain
our gold reserve there never has beef
| any apprehension as to our ready abil1t.