The morning call., 1895-01-29

An adequate gold reserve is in all circum-
stances absolutely essential to UNFOLDING our
public credit and to the maintenance OF our
high national character Our gold reserve has
again reached such stage of diminution as to
require its speedy reinforcement. Aggraya-
tions that must inevitably follow the present
conditions and methods will certainly lead to
misfortune and loss, not only to our ma
tional credit and prosperity and to financial
enterprise but TO those of our people who seek
employment as means OF livelihood and to
those whose only capital is daily labor. 1t will
hardly do to say that simple increase OF the
revenue viii cure our troubles. The appre-
hension now existing and constantly increas-
ing as to our financial ability does not rest upon
the calculations of our revenues The time has
passed when the eyes of investors abroad and
our people at home were fixed upon the
revenues of this Government. Changed con-
ditions 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 computable
surplus of more than 500, 000,0 900, butitis notin
gold and, therefore, does not meet our diff
Guilty. l cannot see that differences OF opinion
concerning the extent to which silver ought to
be coined or used in our currency should inter-
fere with the counseIs of those whose duty it is
cial situation. They have to consider the ques-
ton of national credit and the consequences
that viii follow from its collapse.
I do not understand that the real friends OF
silver desire the condition that might follow
inaction or neglect to appreciate the meaning
of the present exigency, if it should result IN
the entire Punishment of gold from our imam
cial and currency arrangements. Besides,
treasury notes, which certainly should be paid
in gold, amounting to nearly $500,000,O00,
there will fall due in 1904 800 0o0 900, issued
during last year, for which we have received
gold, and in 1907 nearly six hundred million
per cent bonds issued in 1877.
Shall the payment of those obligations in
gold be repudiated? Ii they are to be paid in
such manner as the preservation of our ma
tional honor and national solvency demands,
we should not destroy or even imperil our
ability to supply ourselves with gold for that
purpose. While / am not unfriendly to silver,
and while desire to see it recognized TO such
an extent as is consistent with the financial
safety and preservation OF the national honor
and credit, l am not willing to see gold entirely
banished from our currency and finances To
avert such consequences believe thorough and
radical remedial legislation should be promptly
passed. I, therefore, beg Congress to give the
subject immediate attention. In my opinion,
the Secretary of the Treasury should be author
lied to issue bonds for the purpose of procur-
ing and maintaining sufficient gold reserve.
We should be relieved from the humiiiating
process of issuing bonds to procure gold to be
Immediately and repeatedly drawn on these
obligations for purposes not related to the
benefit of our Government or our people The
principal and interest OF those bonds should be
payable on their face in gold; because they
should be sold for gold or its representative
and because there would now probably be
difficulty in favorably disposing of bonds not
containing this stipulation. / suggest that
bonds be used in denominations of $40 and
$50 and their multiples, and that they bsar
interest at rate not exceeding per cent per
annum. I do not see why they need be pay
able for 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 well be permitted at discretion to re-
eeiye on sale of bonds legal tender and
treasury notes, to be retired, and OF course
when they are thus retired or redeemed in
gold they should be Cancelled.
These bonds under existing laws could be de-
posted by national banks as security for circu-
lation, and such banks should be allowed to is
sue circulation up to the face value of these or
any other bonds so deposited, except bonds
outstanding, bearing 2 per cent interest and
which will sell in the market at less than par.
National banks should not be allowed to take
out circulating notes of less denomination than
$40, and when such as are now outstand-
ing reach the treasury, except for redemption
| and retirement, they should be Cancelled and
notes of the determination of $40 and upward
issued in their stead.
Silver certificates OF the denominations of
SO and upward should be replaced by certif-
Gates OF denominations under SO. AS con-
slant means for the maintenance of a reason
able supply of gold in the 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.
believe all the provisions l have suggested
should be embodied in our laws if we are to
enjoy a complete reinstatement of a sound
financial condition. They need not interfere
with any currency scheme providing for an
| increase of the circulating medium through
the agency OF national or State banks since
they can easily be adjusted to such scheme
Objection has been made to the issuance
of interest-bearing obligations for the purpose
of retiring the Notwithstanding legal ten
der notes. In point of fact, however, these
notes have burdened US with large load Of
interest, and it is still accommodating. The
aggregate interest on the original issue of
bond proceeds which, in gold, constituted the
reserve for payment of these notes amounted
10 TtO,OAO,1OO On ,1cJO, dllu lI1c dIl-
nual charge for the interest on these bonds and
those issued for the same purpose during the
last year, viii be SO Jas 900, dating from Janu-
airy l, 1895. While the cancellation of these
notes would not relieve us from obligations al
ready incurred on their account these facts are
given as a suggestion that their existence has
not taken from the interest charges, and that
the longer they are outstanding, judging from
the experience last year, the more expensive
they will become.
In conclusion desire frankly to confess my
reluctance to issuing more bonds in the pres
ent circumstances and with no better results
than have lately followed that course. l can
not however refrain from adding to the assur-
ance of my anxiety to cooperate with the pres
ent Congress in any reasonable measure ofrelief
the expression of nay determination to leave
nothing undone which furnishes hope for i'm
proving the situation or checking the suspi-
cion of our Discrimination or disability TO meet
with strictest honor every national obligation
GROVER CLEVELAND.
Executive Mansion, Jan. %, 1895.
SPRINGER PREPARES A BILL.
1t Is to Carry Into Effect the Presidents
Recommendations.
WASHINGTON, Jan. %. - Chairman
C,0ripoor of tho RopI-ir,r md C,,r-o,,o nv,