The Penn's Grove record., 1895-12-06
of our people and exciting their sensitive
imaginations.

" Jul BNbDAt ohu 4NAthh NAN
i~maginations.
Free Silver.
I do not overlook the fact that the can
collation. of the Treasury notes issued I'M
der the silver purchase act of 1890 would
leave the Treasury in the actual ownership
Of sufficient silver, including seigniorage,
to coin nearly $11S,0O0, 600 in standard dol
lars. Ii is worthy of consideration whether
this might not. from time to time, be con-
verted into dollars or fractional coin and
slowly put into circulation, ms in the Judg-
ment of the Secretary of the Treasury
the necessities of the country should re-
quire. /,
Whatever is attempted should be entered
upon fully approaching the fact that by
careless. easy descent, we have reached a
dangerous depth, and that our ascent VIII
not be accomplished without laborions toll
and struggle. We shall be wise If we re-
alize that we are financially i'll, and that
our restoration to health may require heroic
treatment and unpleasant remedies.
In the present state of our difficulty II -
not easy to understan nd how the amount
of our revenue receipts directly affects
II. The important question is not the
quantity of money received in revenue pay
ments. but the kind of money we maintain
and our ability to continue ip sound fnan-
cial condition. We are considering the
governments holdings of gold as related TO
the s%oundness of our money and as at
fecting our national credit and monetary
strength. y
Factors which are Lacking.
If our gold reserve had never been i'm
paired; IL no bonds had ever been issued
to replenish it; if there had been no fear
and tiinidity, concerning our ability to con-
tinue gold payments; If any part of our
revenues were now paid In gold. and If we
could look to our gold receipts as a means
of maintaining a safe reserve, the amount
of our gold revenues would be an induen-
tial factor In the problem. But, unfortun-
ately, all the circumstances that might
lend weight to this consideration are en-
tirely lacking. In our present predicament
no gold is received by the government in
payment Of revenue charges, nor would
there be II the revenues were increased.
The receipts of the Treasury, 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 government in paying
its current ordinary expenses, and its guam
tity in government possession does not In
the least contribute toward goving us that
kind of safe financial standing or condi-
ton which is built on gold alone.
Taking the Notes.
If it is said that these notes If held by
the government can be used to obtain gold
for reserve, the answer is easy. The people
draw gold from the Treasury on demand
upon United States notes and Treasury
OttS put liz ptODoSllIOu UNI III 1Etdo-
ury can on demand draw gold from TIE
people upon theme would be regarded in
these days with wonder and amusement.
And even If this could be done, there is
nothing to prevent those thus parting with
their gold from regarding it the next day
or the next hour by the presentation of the
notes they received in exchange for 1t.
The Purchase of Gold.
The Secretary of the Treasury might use
such notes taken from a surplus revenue
to buy gold in the market. OF course, he
could not do this without paying a pre-
MUM. Private holders of gold, unlike the
government, having no parity to maintain,
best bargain possible when they furnished
gold to the Treasury; but the moment the
Secretary of the Treasury bought gold on
any terms above par he would establish a
general and universal premium upon it,
thus breaking down the parity between
gold and silver, which the government is
pledged to maintain, and opening the way
to new and serious complications.
In the meantime a premium would not
remain stationary, and the absurd specta-
Gle might be presented of a dealer selling
gold to the government, and with United
States notes or Treasury notes in his hand
Immediately clamoring for its return and a
resale at a higher premium. W
1t may be claimed that a large revenue
and redundant receipts might favorably af-
feet the situation under discussion by af-
fording an opportunity of retaining these
notes in the Treasury when received, and
thus preventing their presentation for
gold. Such retention to be useful ought
to be at least measurably permanent; and
this is precisely what is prohibited, so
far as United States notes are concerned
by the law of 1878 ~forbidding their further
retirement. That statute in SO many
words provides that these notes when re-
ceived into the Treasury and belonging
IN fhA vTntfaA Sfafac shall ha tpotd Ark
again and kept in circulation
1t will, moreover. be readily seen that
the government could not refuse to pay
out United States notes and Treasury
notes In current transactions when de-
manded and insist on paying. out silver
that metal and the currency representing
gold. Besides, the accumulation in the
Treasury of currency of any kind exacted
from the people through taxation, is justly
regarded as an evil, and II ann proceed
far without vigorous protest against an
unjustifable retention of money from the
business of the country and a demuncia-
ton of a scheme of taxation which proves
itself to be unjust when 1t takes from the
earnings and income of the citizens mone
SO much in excess of the needs of govern
ment support that large sums can be gath
cred and kept in the Treasury. Such a
condition has heretofore in times of sur
plus revenue led the government to restore
currency to the people by the purchase Of
its unmatured bords at a large premium
and by a large increase of Its deposits in
national banks, and we easily remember
that the abuse Of Treasury accumulation
has furnished a most persuasive argument
in favor of legislation radically reducing
our tariff taxation.
The Hoarding Of Gold.
Perhaps. it Is supposed that sufficient
revenue receipts would in a sentimental
way improve the situation by inspiring
confidence in our solvency and allaying the
through all our struggles to maintain our
gold reserve there never has been any mp
prehension as to our ready ability to pay
our way with such money as we had; and
the question whether or not our current
receipts met our current expenses has
not entered into the estimate of our sol
vency. OF course, the general state of
our funds. exclusive Of gold, was entirely