The free press., 1895-12-19

suitable steps for the protection of any
interests of our countrymen within reach
of our ships that might be found imper-
ile1.
Though thus far no lives of American
citizens have been sacrificed, there can bo
no doubt that serious loss and destruction
Of mission property have resulted from
fiotous conflicts and outrageous attacks.
The Financial Situation Reviewed.
AS we turn from review of our foreign
relations to this contemplation of our ma
tional financial Situation we are immed-
ately aware that we approach subject OF
domestic concern more Important than
any other that can engage our attention,
and one at present in such perplexing
and delicate predicament as to require
prompt and wise treatment
We may well be encouraged to earnest
effort in this direction when we recall the
steps already taken toward improving our
economic and financial situation and when
we appreciate how well the way has been
prepared for further progress by an
aroused and intelligent popular interest in
these subjects
BY coming of the people customs rev.
enue system designed for the protection
and benefit of favored classes at the ex-
men and which, 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has been superseded by a tariff policy
which in principle is based upon denial
of the right of the government to obstruct
the avenues to our people cheap living or
lessen their comfort and contentment, for
the sake of according especial advantages
to favorites and which, while encourage
Ing our intercourse and trade with other
nations, recognizes the fact that Ameri-
can self reliance, thrift and ingenuity can
build UP our country's industries and de-
velop its resources more surely than en-
ervaling paternalism. The compulsory
purchase and coinage of silver by the gov
ernment, unchecked and unregulated by
business conditions and needless of our
currency needs, which for more than 10
years diluted our circulating medium,
undermined confidence abroad in our
financial ability and at last eliminated in
distressaand panic at home, has been re-
Gently stopped by the repeal of the laws
which forced this reckless scheme upon
the country.
The things thus accomplished, notwith-
standing their extreme Importance and
benefcient effects, fall far short of curing
the monetary evils from which we suffer
as a result of long indulgence in ill-ad-
vised financial expedients. The currency
denoniiuated United States notes and COM
monty known as green backs was issued in
large volume during the late civil war.
and was intended originally to meet the
exigencies OF that period. 1t will be seen
by reference to the debates in congress
ht the time the laws were passed authoriz-
ing the issue Of these notes that their ad-
vocates declared they were intended Tor
only temporary use ard to meet the emer
peusS Of war. In almost If not all the
laws relating to them. some provision was
made contemplating their voluntary OF
compulsory retirement A large quan
tity Of them, however, were kept on 1901
and mingled with the currency of the
country, so that at the close of the yea.
1874, they amounted to $3Sl 1893 0I3. I'm
mediateiy after that date, and in January
1875, a law was passed providing Tor the
resumption Of specie payments, by whlch
the secretary of the treasury was required
whenever additional circulation was is
sued to national banks, to retire Shi.eu sn e.
States notes equal in amount to ~ pei
ceat OF such additional national bank CIR
culation until such notes were reduced tc
$500, 000 900,
This law further provided that on and
after Jan. /, 1870, the United states notes
then outstanding should be redeemed II
co.n and in order to provide ana prepare
for such redemption the secretary OF the
treasury was authorized not only TO USE
| any surplus revenues Of the government
| but to issue bonds Of the United State
| ard dispose Of them for coin and to 81
| the proceeds for the purposes co5temp
| lated by the statues.
In MAY. 1876, and before the date thus
| appointed for redemption and retiremen,
| OF these notes, another statute was passed
| forbidding their further cancellation ani
retirement. Some of them had. however
| been previously redeemed and canceiiet
upon the issue OF additional national bani
| circulation, as permitted by the law o
| 1875 so that the amount outstanding a
| the time of the passage OF the act forDiu
| ding their further retirement was s9io'
! 6sl .0l6.
The law of 1878 did not stop at distan
| prohibition, but contained, in ADDITION
the following express provisions
"And when any Of said notes may pe re
| deemed or be received into the treasury
| under any law from any source whatever
| and shall belong to the United States
| they shall not be retired cancelled or dc
stroyed bnt they shall be relssued am
| paid out again and kept In circulation"
| The government was put in the anon
| alous situation of owing to the holders O
its notes. debts payable in gold on deman
which could neither be retired by recei'
| ing such notes in discharge OF obligation
| due the government, nor canceileu
actual payments in gold, it was forced {
| redeem without redemption anu 10 pa
without acquittance.
There had been issued and sold s95,5oo
900 of tax bonds authorized by the resuml
| ton act of 1873, the proceeds OF which, tC
| gether with other gold in the treasury
created gold fund deemed sufficient 7
meet the demands which might be mad
upon it for the redemption of the oul
standing United States notes. rms lune
together with such other gold as might 3
from time to time in the treasury avai
able for the same purpose, has been slnc
called our gold reserve, and SlO0,ooO,ot
has been regarded as an adequate amour
to accomplish its object. This tun
amounted on Jan. 1, 1878, to Sll4, l93, 36'
and though thereafter constantly huctt
ating, it did not fall below that sum unit
July, 1892. In April. 1S93 for the hr'
| time since its establishment, this reser'
amounted to less than 800 O00O.0Oo, col
tanning at that date only $97 oil .23o.
In the meantime, and IN th
month of July. 1890, an act had pee
passed directing larger governments
monthly purchases of silver than had bee
REQUIRED under previous laws. and pr
viding that in payment for such silv
treasury notes of the United States shou
be issued payable on demand in gold I
silver coin at the discretion of the seer
tary of the treasury. 1t was, howeve
declared in the act to be 'the estahlisht
| or4 4 10. tot n maintain I'll