Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1895-12-07
Domestic Affairs.
THE FINANCIAL SITUATION.


THE FINANCIAL SITUATION
As we turn from review OF our foreign re-
latlons TO the contemplation OF our national
financial situation, we are Immediately aware
that we approach subject OF domestic concern
more important than any other that can en-
gage our attention, and one at present in such
perpexing and delicate predicament as to
require prompt and wise treatment.
by command OF the people, customs rev.
enue system, designed for the protection and
benefit or favored classes at the expense Of the
great mass OF our countr, men, and whi,h,
while inefficient for the purpose of revenue,
curtailed our trade relations and impeded our
entrance to the markets Of the world, has been
superseded by tariff policy which in princi-
pie is based upon denial OF the right
OF the government 10 obstruct the avenues to
our peoples cheap living or lessen their COM
fort and contentment, for the sake OF accord
Ing especial advantages to fnvorites, and
which, while encouraging our intercourse and
trade with other nations, recognizes the fact
that American sc,f-reiance, thrift and iuge-
nuity can build up our countrys industries
and develop Its resources more surely than
enervating paternalsm.
REPEAL OF THE sILyER-PURoHAsE LAW.
The compulsory purchase and coinage OF all
yer by the government unchecked and unregu-
lated by business conditions and needless Of
our currency needs, which for more than fifteen
years diluted our circulating medium, under
mined confidence abroad In our financial
panic at home has, been recently stopped by
the repeal Of the laws which forced this reck-
less scheme upon the country. The things thus
accomplished notwithstanding their extreme
importance and beneiicicnt effects. fall far
short of curing the monetary evils from which
We suffer as result OF long indulgence In i'll
advised financial expedicnts.
THE GREENBACK CURRENCY.
The currency denomnated United States
notes, and commonly known as greenbacks,
was issued in large volume during the late civil
war and intended originally to meet the cxi-
gences OF that period. 1t Will be seen by
reference 10 the debates in congress
at the time the laws were passed
authorizing the issue OF these notes,
that their advocates declared they were in
tended for only temporary use and TO meet the
emergency OF war.
In almost, II not all, the laws relating to
them some provision was mauc contemplating
their voluntary or compulsory retirement A
large quantity of them, however, were kept on
foot and mingled with the currency OF the
country so that at the close Of the year 1874
they amounted to 1881 800. .O75. Immediately
after that date, and In January, 1873, law was
passed providing for the resumption OF specie
payments by which the secretary OF the treas
ury was required whenever additional circula-
ticn was issued TO national banks
to retire United States notes equal in amount
to 50 per cent. OF such additional national bank
circulation until such notes were reduced to
1900 00OOOO. This law further provided that on
and after the 1st day OF January, 1872. the
United States notes then outstanding should
be redeemed in coin, and in order TO provide
and prepare for such redemption the secretary
OF the treasury was authorized not only to use
any surplus revenue Of the government, but to
issue bonds of the United States and dispose
Of them for coin, and to use the proceeds for
the purposes contemplated by the statute.
In May, 1873, and before the date thus ap-
pointed for the redemption and retirement OF
these notes. another statue was passed forbid
ding their further cancellation and retirement
S0ue Of them had. however, been previously
redeemed and cancelled upon the issue OF ad-
ditional national hank circulation as permitted
by the law of 1875 SO that the amonnt out
standing at the time of the passage Of the act
forbidding their further retirement was $780,
Gsi,0l6 The law Of 1873 did not stop at distinct
prohibition, but contained in addition, the
following express provision:
"And when any Of said notes may be re-
deemed or be received into the treasury, under
belong to the United States, they shall not be
retired, cancelled. or destroyed, but they shall
be reissued and paid out again and kept In cir
culation."
This was the condition Of affairs on the lst
day OF January, 1877, which had been liked upon
four years before as the date for entering upon
the redemption and retirement OF all these
notes, and for which such abundant means had
been providc'. The government was put 10
the anomalous situation Of owing to the hold
ers Of its notes debts payable In gold on de-
mand which could neither be retired by re-
coiving such notes In exchange OF obligations
due the government nor cancel ed by actual
payment in gold. 1t was forced to redeem
tance.
THE GOLD RESERVE
There has been issued and sold &95. 200 900 Of
the bonds authorized by the resumption act OF
le75, the proceeds OF which, together with
other gold In the treasury, created o gold fund
deemed sufflcient to meet the demands which
might be made upon 1t for tho redemption OF
the outstanding United States notes. This
fund, together with such other gold as might
be from time TO time In the treasury available
our gold reserve, and 500 00OD,0O0 has teen re-
gardcd as an adequate amount 10 accomplish
Its object. This fund amounted on the
list day Of january, 1870. to tli4, 1885, and
II did not fall below that sum In July, 1892. In
1903, for the first time since its establishment,
this reserve amounted TO less thnn 800 ,000, ,0O,
containing nt that date only 80 In the
passed directing larger monthly. governmental
purchases OF silver than had been required
under previous laws, and providing that In
payment for such silver treasury notes OF the
United States, should be issued. payable on
demand In gold or silver coin, at the discre-
tion Of the secretary Of the treasury, ii was
however declared 10 the act to be the estab-
llshed policy Of the United States to maintain
the TWO metals on parity with each other
upon the present legal ratio. or such ratio ss
may DO provided by law,
In view Of this declaration It was not deemed
permissible for the secretary Of the treasury
70 exercise the discretion In terms conferred on
him BY refusing to pay gold on these notes
when demanded. because BY such dlscrlmi-
nation 70 favor OF the gold dollar, the so-callod
parity Of the two metals would DO destroyed.
and grave and dangerous consequences would
pe precipitated BY Affirming Or nccentuat-
Ing me constantly widening disparity between
their actunlevAlucs under the existing ratio.
II thus rcsultod thAt the treasury notes issued
In Iiaymcnt OF silver purchases under the law
o. iBsO were necessarily treated as gold oh'Ivn-
tl9nss Al tne option Of the holder. g -
These notes, on the first day OF November,
l@S, when tho law compelling tho monthly pur,
chnse Of aiIvor was repealed, amounted 10 more
than oI6s, 900 0Q The notos of this desc iptlon
now outalandloE. added to tho United Stntos
: notes X nsllt undi iqished " sedeqptlQp Or Gan.
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