Alma record. (Alma, Mich.) 1878-1928, 1895-12-13

|
| Luy gold i'm the market. or course, ne
| could not do this without paying q premium
| Private holders OF gold, unlike the govern,
| ment, having no parity 60 maintain would
| not be restrained from making the besi
| bargain possible when they furnished gold
| 10 the treasury. but the moment the Secle-
| tarv OF me treasury bought gold on any
| terms above par he would establish a gen
| cral and universal premium upon H. thuS
| breaking down the parity between fol9
| and silver Which the government Is pledged
! TO maintain. and opening the way 10 new
! aud serious complications In the mean
tire the premium would not remain ste.
/ tiDrarY, and the absurd spectacle might
! be presented OF dealer selling golu I.
the government, and with United states
notes or treasury notes in his hand imme-
Ciately clamoring for It's return anu re-
sale at higher premium.
1t may be claimed that "a large revenue
! aud redundant receipts might favorably
| affect the situation under discussion by
affording an opportunity OF retaining
these notes in the treasury when received,
| and thus preventing their presentation Tor
gold. Such retention To be useful ought TO
be a least measurahly permanent, and this
Is precisely what Is prohibited, as far as
! United States notes are concerned, by the
law of 1873, forbidding their further re-
tirement That statute i'm so many words
! provides that these notes when received
! into the treasury and belonging to the
United States, shall be paid out again and
! kept in circulation" 1t Will moreover be
readily seen that the government could
! not refuse to pay out United States notes
aud treasury notes in current transactions
when demanded. and insist on paying out
! silver alone, and still maintain the parity
between that metal and the currency rep
! resenting gold.
Would BE Uniust Taxation.
Besides the accumulat ton in the treasury
| or currency OF any kind eXactcd from the
people through taxation IL justly regarded
as an evil. and cannot proceed far without
vigorous protest against an un1ustlnaDIes
retention of money from the business OF
! the country, and q denunclation or
scheme OF taxation which proves ltseit TO
be unjust when il takes from the earnings
and incomes Of the citizens money so
! much in excess Of the needs OF govern
ment support that large sums can be gath
cred and kept in the treasury. such
condition has heretofore III time OF sur
plus revenue led the government 10 restore
currency to the people by the purchase OF
its unmatured bonds at 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.
Fear Overcones sentiment.
Perhaps It is supposed that sufficient
|, revenue receipts would I'm a sentimetal
way improve the situation. by inspiring
! confidence in our solvency and allaying the
! fear OF pecuniary exhaustion. And yet
through all our struggles to maintain our
gold reserve there never has been any APP
prehenson 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
I
= OF course the general state OF our funds,
5 exclusive OF gold was entirely immaterial
l TO the foreign creditor and investor. lis
t debt could only be paid IN gold, and his
r only concern was our ability TO keep on
2 hand that kind Of money.
= On July /, 1892. more than a year and a
half before the first bonds were issued to
) replenish the gold reserve, there was net
= balance In the treasury exclusive or such
r reserve, Of less than $1,000, 000 but the gold
= reserve amounted TO more than Sll4 00N, 600.
e which was the quoting feature Of the sit
Y uation. was when the stock OF gold be-
t gan rapidly TO fail that fright superNened
and our securities held abroad were re-
q turned for sale. and debts owed abroad
e We're pressed for payment. In the mean.
I time extensive SHIPMENTS OF gold and
. other unfaVorable indications caused rest
h lossness and fright among our people at
g home. ThcreupOn the general state of our
. funds, exclusive Of gold, became also inn
= material to them, and they. too, drew gold
v from the treasury for boarding against all
n contingencies. This is plainly shown by
= the large increase In the proportion of gold
8 withdrawn which was retained by our own
: people as time and threatening incidents
3 progressed During the fiscal year ended
|, June 80 1894, nearly 100000 in gold was
: withdrawn from the treasury and about
= S77.OO0. 600 was sent abroad, while during
i the fiscal year June 30, 1895, over s1l70o 0O
t was drawn out, of which only about s66.
o 600, 600 was shipped. leaving the large bal
o ance Of such Withdrawals to be accounteC
y for by domestic boarding.
n Can't Rely Upon Increased Revenues.
Inasmuch as the withdrawal OF our gol6
=, has resulted largely from fright, there /!
= nothing apparent that will prevent its con
n tinuance or recurrence, with It's natura
r consequences, except such a change in on
q financial methods as will reassure tn
n frightened and make the desire for golt
: less intense. II is not clear how an In
= crease in revenue. unless II be in gold, cal
q satisfy those whose only anxiety is 70 gaii
: gold from the governments store. 1t can
9 not therefore be safe to rely upon increased
" revenues as a cure for our present troubles
s 1t is possible that the suggestion Of IN
a. Gan - "A =
q culties we are considering may have origin
y ated in an intimation or distinct allegation
= that the bonds which have been issued os
Il tensbly 10 replenish our gold reserve, wer
really issued 10 supply insufficient rev
enue. Nothing can be further from tn
truth.
II To Maintain National Credit.
" Bonds were issued to obtain gold for m
% maintenance of our national credit, y
g. has been shown, the gold thus obtSne'
:, has been drawn again from the trcasur.
"a upon United States notes and treasur.
~ notes. This operation would have bee
- promptly prevented If possible, but thes
"a | notes having thus been passed TO the treas
~ ury, they became the money of the govern
20 ! ment, like any other ordinary governmen
- funds, and there was nothing 10 do but I
10 | use them in paying government expense
= when needed. At no time when bond
- have been issued has there been any con
= sideration OF the question of paying tn
"a expenses Of government with their pro
~; crcds. There was no necessity to conside
~ that question. At the time OF each bon
a. ury for ordinary operations, exclusive q
- the gold in our reserve. In February, lSS
Iu when the first issue OF bonds was made
~ such surplus amounted to over SlSOOO,U0l
10 in November, when the second issue wa
- made, IL amounted TO more than $4,000 0
Ca and I'm February, 1899 when bonds for tn
~ third time were issued such surplu
80 amounted 10 more than $l000o0.C00 II uo'
~ amounts TO SgS.0f2 5000. Besides all this
80 the secretary OF the treasury had no an
no thority whatever 10 issue bonds 10 increas
Il, the ordinary revenues or pay current OK
- peuses | cannot but thnk there has bee
- some confusion Of ideas regarding IN
~ effects Of the issue OF bonds and the result
OF the withdrawal OF gold. 1t was the la
ter process, and not the former, that, h
Is substituting In the treasury United state
OF notes and treasury notes for gold. IL
IT, | creased by their amount the money whic
tY was in the first instance subject to ord
IS, nary government expenditure.
vi silver Largely Responsible.
n Although thela compelling an increase
he | purchase of silver by the government wa
no | passed on the 18th day of July, 1890, witt
N | rawas of gold from the treasury upon II
M notes given tn payment on such purchas,
ed did not begin until October, 1891 Immed
ar ately following that date the Withdrawal
m upon both these uOtcs and United Stat,
ur notes inCr cd very largely and have col