Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1895-02-02

4 message on the financial question. Its
main features are here given:
Whatever may be the merits of the plan out
lined In my annual message as remedy Tor Ills
existing and as a safeguard against the deple,
ton of the gold reserve then in the treasury, l
am now convinced that its reception by the
congress and our present advanced stage OF
financial perplexity necessitates additional or
different legislation.
Lack of confidence grows to some extent out
of the palpable and apparent embarrassments
attending the government, under existing laws.
to procure gold and to a greater extent out OF
ury cancelling obligations by its expenditure
after It Is obtained
The only way possible to the government for
procuring gold is by the issue and sale of bonds.
The only bonds that can be issued were author
lied nearly twenty-five years ago. and are not
well calculated to meet our present needs.
Among other disadvantages they are made pay
able in coin, instead of specifically IN gold,
Wnicn, IN eGlstlng CONDITIONS detracI: ltrsely'
and IN an increasing ratio from their deslra-
bility as investments 1t is by no means certain
that bonds of this description can much longer
be disposed of at price credltable to the imam
clal character of our government.
The most dangerous and irritating feature OF
the situation, however. remains to be men
toned. 1t is found in the means by which the
treasury is despoiled of the gold thus obtained,
without cancelling single government obliga-
tion, and solely for the benefit of those who find
profit in shipping it abroad, or whose fears in
duce them to hoard it at home
We have outstanding about five hundred mil
lions of currency notes of the government for
which gold can be demanded; and, curiously
and, in fact, redeemed and paid in gold, they
shall be reissued. Thus the same notes may do
duty many times in drawing gold from the
treasury; nor can the process be arrested as
long as private parties who profit or otherwise
see an advantage in repeating the operation.
More than 300,000000 of dollars in these notes
have already been redeemed in gold and, not
withstanding such redemption, they are still
outstanding. Since the l tn day of January,
1894, our bonded interest bearing debt has been
increased 500 0000 900 for the purpose of obtain
sues were made amounting to $4,000 900 each
one in January and another in November. AS
a result of the first issue there was realized some
thing more than S58OOOODO in gold. BetT cen
that issue and the succeeding one in November,
comprising period of about ten months, nearly
100000 in gold drawn from from the
treasury. This made the second issue neces-
sary. and upon that more than S58,OOO,0OO IN gold
was again realized.
Between the date of this second issue and the
present time, covering a period of only about
two months, more than $69,0)0G00 in gold were
expended without any cancellation OF govern
ment obligations, in any permanent way BEN
citing our people, or improving our pecunIary
situation.
An adequate gold reserve is in all circum.
stances absolutely essential to the upholding of
our public credit and to the maintenance of our
high national character.
Our gold reserve has again reached such a
stage of diminution as to require its speedy en-
forcement.
It will hardly do TO say that simple increase
of revenue Will cure our troubles. The appre-
hension now existing and constantly increasing
to our financial ability, does not rest upon
calculation of our revenue. The time has passed
when the eyes of investors abroad and our people
at home were fixed upon the revenues of this
government. Changed conditions 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 in the treasury a comfortable sur
plus of more than S63000,0J0, but it IS not In
gold and therefore does not meet our difficulty.
Whatever ideas may be insisted on as to sill
yer or blmetalllsm, a proper solution OF the
question now pressing upon us only requires
recognition of gold as well as silver and con-
cession of its Importance, rlghtfully, or wrong
fully acquired. a basis of national credit
necessity in the honorable discharge of our
obligations payable in gold and a badge OF
Besides the treasury notes which certainly
should be paid in gold, amounting to nearly
500000,000 of dollars there will fall due in 1904
one hundred millions of bonds issued during the
last year for which we have received gold, and
in 1907 nearly 600 millions of per cent bonds
issued 1877; Shall the payment of these obliga-
tions in gold be repudiated? If they are to be
paid in such a manner as the preservation
of our national honor and solvency demands
we should not destroy, or even impern our ab1-
ity to supply ourselves with gold for that pur-
pose.
In my opinion the secretary of the treasury
should be authorized to issue bonds of the gov
ernment for the purpose of procuring and main
tanning sufficient gold reserve for the redemp-
tion and cancellation of the United States
legal tender notes and the treasury notes issued
for the purchase of silver under the law
of July A. 1890. We should lie relievedfrom
the humilating process of issuing bonds to pro-
cure gold Immediately and repeatedly drawn
out on these obligations for purposes not related
to the benefit of our government, or our people.
1he principal and interest OF these DOnQS
should be payable on their face in gold, because
they should be sold only for gold, or its repre-
sentative, and because there would now prob
ably be difficulty in favOrably dispoSlng OF
bonds not containing this stipulation. j sug-
gest that the bonds be issued in denominations
of twenty and fifty dollars and their multiples,
and that they bear interest at a rate not ex-
ceedlng per cent per annum do not see why
they should not be payable nifty years from
their date We of the present generation, have
large amounts to pay il we meet our obligations
and long bonds are most SaIeable.
The secretary of the treasury might be per
Initted at his discretion to receive on the sale
of bonds the legal tender and treasury notes to
or redeemed in gold, they should be cancelled,
These bonds under existing laws could be
deposited by national banks as security for cir
culation, and such banks should be allowed to
issue circulation up to the face value of these,
or any other bonds so deposited.
National banks should not be allowed to take
out circulating notes of a less denomination
than SO. and when such now outstanding
retirement, they shouN be cancelled and notes
of the denomination u SO and upward issued
in their stead Silver certificates of the denom-
Inatlon of $40 and upward should be replaced
by certificates of denominations under S1O
Our duties on imports should be paid In gold.
allowing all other duties to the government to
be paid in any other form of money.
Objection has been made to the issuance or
retiring the non-interest bearing LEGAL tender
notes. In point of fact. however. these notes
have burdened US with large load of interest.
and it is still accupulating.
NhIle the cancellation or these noFes Nouic
not relieve us from the obligations already in
CURED on their account. Il ese figures are given
by way of suggesting that their existence has
not been free from interest charges and that
the longer they are outstanding judging from
the experience of the last year, the more cxpeIF
siya they will become.