The morning times., 1895-12-17

been completed under rthecontract.
The issue Of bonds to procure coin for
the reserve. which is the only effectuai
Method now available under the law. Will.
unless the conditions which have already
been developed by the present policy are
| radically changed. ultimately result IN the
creation of public debt much larger than
would be required to retire and cancel all
the notes; and the annual interest charge
VIII be much greater than 1t would be neces-
sary TO incur on new class or bonds
adapted TO the present circumstance OF
| the government and the weii-Anown prefer
ences OF investors. II. however. an attempt
Is to be made to keep the United States
notes and Treasury notes permanently IL
circulation by reissues after redenption.
charged with the duty OF sustaining the
value or all our currency, paper and com
that the policy OF issuing bonds for the
ACCOMPLISHMENT of these purposes must
also become permanent. and such addition
Ill powers Must he conferred upon the Secre-
tary as Will enable him To execute the
laws relating To these subjects with The
least possible disturbance OF the business
affairs of the people, and the least possible
charge upon the Treasury. | am thorough
" convinced that this policy ought not 10
be continued, but that the United States
notes ami Treasury notes Should be retIfeu
from circulation at tie earliest pfacticaDie
day. and that the government should be
wholly relieved from the responsibility OF
providing credit currency Tor the people.
1T would he difficult. II not inpoSslpie.
to devise a more inccnvenicnt expensive
or dangerous system than the one now In
operation under the laws providing for the
Issue, redemption and reissue or Legal ten
der notes by The government.
THE RESUMPTION, ACT.
'The well-known resumption act of
January ID, 1875, was passed. which
provided that all United States notes In
excess of $500, 100000 should be retired
and Cancelled, with certain limitations as
TO the method of retirement, and tIat. after
.lluulry L. lS.D. Inc Secretary OF tue
Treasury should redeem la coin all such
notes as might be then outstanding on
of not less than $50. Under this act notes
TO the amount of S3o.3lS.ySf / Were retired
and cancelled, when the process WAS again
arrested by the act of May 81, 1873, here
tofore quoted. II Is thus seen that two IN
crfectual efforts have been made since the
close of the war TO eliminate this legal
tender paper from our currency, and, with
ont now attempting to discuss the causes
of their failure; ii is pertinent to suggest
that the Injurious effects OF its continued
circulation mad not then been felt as they
have been since, and could not then be
certainly foreseen. 1t was net then law
fully redeenIab.e IN coin, but was mere
promise to pay at some indefinite time
In the future, and, consequently, had not
been. and could not then be, used TO force
gold out OF the Treasury, and thus compel
repeated issued of bonds to maintain n
reserve. blt it had then, IS IL has now, all
the vices that belong inherently to legal
tender paper. whether issued by the gov
ernment or by individuals or corporations,
and II also had then. a S IL siill has, the
additional vice OF having been in its origin
forced loan without interest.
DISARRANGE OUR CURRENCY.
"The policy of maintaining a legaI-tender
paper currency and attempting arbitrarily
TO increase the volume of circulation by
continuing the purchase and coinage ofIegal-
tender silver after 1t bad been demonstrated
that 1t could not be raised TO parity with
gold ut The established ratio. could not fail
ultimately TO disarrang oar currency aud
greatly impair its value in the estimation of
the world; without ccnterring any conipsn-
satory advantage upon any part OF our
people. on the lst day of July. 1873. our
total circulation outside of the Treasury was
S123 l32, GA. while on tie 1st day OF De-
ceniber, 1895. 1t was 81 ,594.195.419. be-
ing an increase OF more than i1S Der cent.
although the population of the country has
increased only about q per cent: and at
the same time the use OF credit Instruments
III place of cash has been very greatly in
creased IN all large financial TRANSACTIONS
Since the date first mentioned. full legal
tender silver has becn coined-to the amount
of S423.2s9. 500, of which. however, the
sum OF 81 5.Gi3.60s is still held 10 the Treas
ury under the act OF July | 4. 1890. and
SI55 .93i .0o2 III legal-tender paper have
been arbitrarily added to the currency by
the issue of notes for the purchase OF silver
bullion. thus making tie obligation of the
government 10 redeem all It's notes in coin
and MAINTAIN the parity OF the two metals
SO nilr0eEsDtlie tDtI, LOT several wears,
constantly increasing doubt of its ability to
accomplish the task has seriously disturbed
the public mind and iniuriousiy affected our
industries and trade at home and our credit
abroad.
DEFICIENCY IN THE REVENUE.
mo one has questioned nor does anyone
now question, the ability Of the government
promptly to meet all its obligations in
CURED In the maintenance OF the public
service, and, consequently. the financial
disturbance and general business depression
cannot properly be attributed to defi-
cheney in the revenue. On the contrary.
the deficiency in the revenue, which began
TO appear In the latter part OF S92. and has
continued ever sincc. Is mainly attributable
TO the same causes which produced the fl
uancial dist urba nee and business depression.
The great loss of revenue, instead or being
the cause of our financial difficulties is one
OF the effects produced by defective eur
rency system. and failure to recognize
this important fact will lead us far n stra in
our search for an adequate remedy. II is
true that the tariff act OF 1890. which re-
manned in force until after the close OF the
fiscal year 1S9s, had greatly reduced the
revenue derived from customs. and that the
creased from-S31 s .040.11o.66 during the
fiscal year 1890, to sass, a .95i.49 dur
ing the fiscal year 500: iliitisnoi probable
that there would have been any considerable
excess OF expenditures over the receiptS ir
the business of the people had not been in
tcrrupted by the disturbances growing out
rency.
THE CONCLUSIONS DRAWN.
'As gold coin and gold certificates are
10 longer being paid TO the government. all
our customs must be collected in United
states notes. Treasury notes, silver certifi-
Gates. or silver dollars, and the latter can
not be used for the reason that the expense
OF transferring them IN large amounts from
place to place would exceed the profits Or
dlnariiy made in business transa ctious.
The conclusions to be from these facts
must be apparent at a glance. Owing to
the peculiar character OF our currency the
abllit ofthe Treasury to hoa rd United States
and Treasury notes is limited to n certain
anount-which cannot be definitely deter
mined In advance-and If 1t She ould a fter that
amount has been reached, refuse to pa v out
these notes In making disbursements at the
places where our customs are collected. the
immediate result would be that nearly all
pa yments to the government would be made
in silver certificates. which it is bound to
take. but can compel no one else to take.
There would he stream OF these nom
legal tender certificates constantly flow
ing into the Treasury. and II would receive
Treasury notes al part OF the surplus
revenue, but would soon be compelled to
nay out those already accumulated or
pay gold, or break down In Its operations
at the subtreasuries. This result has been
avoided heretofore only by paying out
these notes from the Treasury from time
TO time, whenever the character OF cur
rency coming in indicated that the point
will be necessary to pursue the same policy
hereafter as long as the legal tender notes
are In existence. Notwithstanding all the
efforts of the department to protect the
Treasury against excessive receipts or
these certificates it bas frequently hap
pened that they constituted more than 30
per cent OF all the payments OF customs
dues at New York. where more than two
Z nir <,f tha fnfa al n nd da- huf