The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-12-04

I of increased revenue as a remedy for
1 the difficulties we are considering may
/ have originated in an intimation or
| distinct allegation that the bonds
which have been issued ostensibly to
replenish our gold reserve were really
issued TO supply insufficient revenue.
| Nothing can DE farther from the truth.
/ bonds were issued TO obtain gold for
| the maintenance of our national
/ credit AS has been shown, the gold
thus obtained has been drawn again
from the treasury upon United States
notes and treasury notes. This opera
/ ton would have been promptly pre-
vented if possible; but those notes
having been passed to the treasury,
they became the money of the govern
| mpnt. like any other ordinary govern
meut funds. and there was nothing to
do but to use them i'm paying govern
/ ment expenses when needed. At no
| time when bonds have been issued has
| there been any consideration OF the
| question of paying the expenses OF
government with their proceeds, there
| was no necessity 10 consider that
| question. At the time of each bond
issue we had q safe surplus in the
| treasury for ordinary operations, eN-
elusive of the gold in our reserve. in
| February. 1894, when the first issue
Of bonds was made such surplus
amounted to over $1S,000,000 in No
| vember. when the second issue was
made. it amounted to more than %42,-
| 900 600. and i'm February, 1898, when
bonds for the third time were issued,
| such surplus amounted to more than
| 500 O0O. 900 1t now amounts to $9o,-
| O72. 420.30, besides all this the Secre-
tarv of the Treasury had no authority
whatever to issue bonds to increase
the ordinary revenues or pay current
| evDpnSes. | cannot but think there
| has been some cOnfusions OF ideas re
oardino the effects of the issue of
| bonds and the results of the withdraw
nj of gold 1t was the latter process
| and not the former that, by subStl-
tuting in the treasury United States
| notes and treasury notes for gold, IN
| creased by their amount the money
which was in the first instance subject
to ordinary government expenditures.
Although the law compelling an in
creased purchase of silver by the gov
eminent was passed ON the 14th day OF
| July. 1890. Withdrawals of gold from
| the treasury upon the notes given in
| payment on such purchases did not
| begin until October. 1891. Immediately
| following that date the Withdrawals
| upon both these notes and United
| States notes increased very largely,
| and have continued to such an extent
that since the passage of the law there
| has been more than thirteen times as
| much gold taken out of the treasury
upon United States notes and treasury
notes issued for silver purchases as
| was thus withdrawn during the eleven
and a half years Immediately prior
| thereto and after the first day of Jan
| uary, 1879, when specie payments were
| resumed.
FREE COINAGE OF SILVER.
| II isneither unfair or unj just to charge
| Il large share of our present financial
| perplexities and dangers to the opera
tion of the laws of 1873 and 1890, COM
| peling the purchase of silver by the
government which not only furnished
| new treasury obligation upon which
il. gold could be withdrawn, but so in
creased the fear OF an overwhelming
food of silver and afforded descent to
| silver payments that even the repeal of
these laws did not entirely cure the
| evils of their existence.
While | have endeayored to make a
plain steatment of the disordered con
dition of our currency and the present
dangers menacing our prosperity, and
to suggest a way which leads to safer
financial system, | have constantly
had in mind the fact that many of my
| countrymen, whose sincerity | do not
doubt. insist that the cure for the ills
now threatening us may be found in
the single and simple remedy of the
free coinage of silver. They contend
that our mints shall be at once thrown
| 0pen to the free, unlimited and indie
pendent coinage of both gold and sill
yer dollars of full legal tender quality,
| regardless of the action of any other
| governments, and in full view of the
fact that the ratio between the metals
| which they Suggest calls for 100
cents worth of gold in the gold dollar
at the present standard, and only fifty
cents in intrinsic value worth of silver
in the silver dollar. Were there inf
nitely stronger reasons than can be adj
duced for hoping that such action
| would secure for us a bi-metallic cur
rency moving on our lines of parity, an
experiment so novel and hazardous as
that proposed might well stagger
those who believe that stability is an
imperative condition of sound money.
No government no human contriv-
ance or act Of igislation has ever been
able to hold the two metals together
in free coinage at a ratio appreciably
different from that which is estab-
lished in the markts of the world.
Those who believe that our indepen-
dent free coinage of silver, at an arti-
fetal ratio with gold of 16 to l, would
restore the parity between the metals,
and consequently between the coins,
oppose an unsupported and improba-
bic theory to the general belief and
practice of other nations, and to the
teaching of the wisest statesmen and
economists of the world, both in the
past and present, and what is far more
conclusive, they run counter to our
own actual experiences.
Twice in our early history our law
makers, in attempting to establish a
bi-metallic currency, undertook free
coinage upon a ratio which accidental