The herald., 1895-12-24
Financial Danger and Remedy

lean people the utter worthlesSness and in
sufficiency of our financial system. The
emergencies to be met show it's incapacity
to meet them. For years | have been ad-
vocating by means of public addresses be-
fore bankers associations, before the Com
mercial congress at Kansas City and be-
fore the Worlds Congress of Bankers at
Chicago. through the public press and be-
fore congress, the necessity of funda-
mental revision of our financial laws,
showing from official statistics and facts
that our system was used as means of
plundering the American people; that it
could not meet our domestic demands, and
that it would break down completely un-
der the first great strain that it might be
subjected to.
President Cleveland, in his message of
December 20, says: I'VE are in the
midst of another season of -perpleXlty
caused by our dangerous and fabulous
financial operations. This might be ex-
pected to occur with certainty as long as
there is no amendment in our financial
SYSTEM"
"The real and sensible cure for our re.
curing troubles can only be effected by
complete change in our financial scheme.
The financial system of the United States
Is SuBpitlilSittti aPkShtotS ~ N"S
finances of Europe; and it lies in the pow
er of European tinanciers to block our
financial work.
Yesterdays dispatches show that the
bankers of London held secret meeting,
and raid Immediately followed on Amer
lean securities and loans. Also' 1t Is an
nounccd that the Roihschilds have "de-
cided to Immediately withdraw some 81 5,-
100000 from America" the entire object
being to financially crush and coerce us to
abandon the Monroe doctrine,
have advocated for years that our ma
tional money system should be based upon
American resources: that it should be de-
voted primarily to American interests; that
it should be broad and strong enough to
fully provide for our domestic and foreign
business, and that it should not IN any
manner be an appendage or an appurte-
nance of foreign finances.
1t is the height of intelligent absurdities
for the strongest. wealthlest ana most pow
erful nation on earth 10 ignore her own
financial resources and powers and to sub
sttute therefor the resources and means or
foreign nations, paying an enormous an
nual prize therefor. In view OF these facts
| have advocated first, constitutional
amendment as the basis OF stable imam
cial system: an amendment that pledged
the faith and resources OF the natlon as a
basis of our system.
President Cleveland asks in his message
that congress shall not take recess until
il has by Legislative enactment or dec!ar.
alton done something. not only to remind
those apprehensive among our own people
tn at tie resources of this government and
a scrupulous regard for honest dealing at
fords a sure guarantee of unquestioned
safety and soundness, but to reassure the
world that with these factors and The patri-
otism of our citizens the ability and deter
minat,on of our nation to meet in any cir
cumstances every obligation 1t lncurs do
not admit of question"
The highest form of obligation known to
our form of government is the constitution
or an amendment thereto ratified by two
thirds majority of each house, and by
three-fourths of all the states.
Congressional laws may be changed or
repealed by any subsequent congress. But
a constitutional amendment is beyond its
power. The following amendment pro.
posed by me in 1890 covers the ground
completely and has met with the approval
of our best legal, financial and congress
sional talent. 1t is as follows:
Article XVI. Section /. national cur.
rency circulating medium shall be Issued
TO the amount OF $40 per capita, as shown
by the census of 1890, and by each sue
ceeding census. for the proper redemption
of which when required, the resources, the
property and the faith of the nation are
pledged: for which redemption. congress,
by a two.thirGs vote of each house, may
provide for the collection of government
revenues and taxes, in gold or silver coin.
Sec. 2. Said currency. with gold and sill
yer coin OF the United States of present
weight and iineness. the dollar being the
standard or unit of values. and such notes
as may be issued in lieu of gold or silver
coin and bullion. held exclusively for eX-
change for currency, shall constitute the
only legal tender money of these United
States, and shall be received at par in sat
isfaction of all obligations for the payment
of money within the jurisdiction of these
United States. Said gold and silver com
and currency shall be eXchangeable at par
value.
Sec. 3. Congress shall have power to
enforce this article by appropriate legisla-
tlon. but shall have no power to increase or
decrease said issue; provided that after
the issue of 1900. congress may, by two
thirds vote of each house. reduce the ad-
ditional issue at any census.
The embodiment of this in our consttu-
ton is the highest guarantee our nation
can give and would be basis for Imam
cial system that would command the high
est confidence at home and abroad, as
President Cleveland suggests.
But while this amendment is in process
of adoption congress can proceed at once
to enact financial law in harmony with it,
Such law should have the following pro-
treasury and also to supply gold for ma
tiOnai use from our own resources:
Sec. 3. That the secretary OF the treas
ury with the approval of the president may
from time to time make such rules and
regulations for the exchange of gold, silver
and currency, at the treasury or any sub
treasury of the United States. in sums OF
not less than $500, as the interests OF the
people may require. Such rules and regu-
lations may require premium to be PAID
on gold or silver taken from the tleas ury
or sub-treasuries. for export: said rules
and regulations may also at any time re-
quire that the gold or silver or any part
thereof taken from the public lands OF the
United States, or from any lands hereafter
sold or patented by the United States,
shall be sold to the United States at it's
market value: and there is hereby reserved
to the government the prior right to buy all
any part of such gold or silver for public
use at its market value, and shall pay
therefor in legal tender currency.
Such rules and regulations may further
provide that each banking corporation
formed under the laws of the United
States, and receiving the benefit of such
law. shall at such times as may be ordered
forwarded to the United States treasury or
any sub.treasury designated, at the eX-
pense of the United States, such percent
age of the gold or silver held by such bank
as may be named i'll such rules and regula-
tions, or as may be designated in any
special order, and shall receive in exchange
therefor legal tender currency.
Such rules and regulations may also
provide for establishing system for clear
ing international commercial balances,