The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-04

+ over Sill.el01o0 was drawn out. Of which
I only about s66e0o,050 was shipped, leav-
ing the large balance Of such Withdrawals
I to be accounted for by domestic boarding
1 lnasmuch as the withdrawal Of our
I gold mas resulted largely from fright
there Is nothing apparent that will pre-
Z vent It's continuance or recurrence. with
It's natural consequences. except such
Z change IN our financial methods as VIII
reassure the frightened and make the de-
sire for gold less intense. Ii is not clear
how an increase IN revenue unless IL
be IN gold, can satisfy those whose only
anxiety Is to gain gold from the govern
ment store. II cannot. therefore be safe
TO rely upon increased revenues as cure
for our present troubles.
IL is possible that the suggestion OF in
creased revenue as a remedy for the diff
nculties We are considering may have orig
mated IN an intimation or distinct ale
cation that the bonds which have been
[ issued OstenSibly to replenish our gold
reserve were really issued TO supply in
suIhclent revenue. Nothing can be fur
Their from the truth. Bonds were issued
10 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 op-
eIa.ioh would nave been promptly pre-
vented II possible; but these notes having
thus been passed to the treasury they
became the money OF the government
Ike any other ordinary government funds
ana there was nothing to do but TO use
them IN paying government expenses
When needed. At no time when bonds
AAtt bse4l 4HsutA mas tneFe been any con-
slueEatloh OF the question of paying the
expenses Of the government with their
proceeds. There was no necessity to con
slider that question At the time of each
oohd issue We had a safe surplus in the
treasury for ordinary operations Txclu-
T n Fe q me g9ld IN our reserve
IL ep af isSi' when the first
surplus amounted 10 over sisO)0 d06
IN November when the second issue was
made, il amounted to more than St3.te3g tssi
NIB hon fE-
third time We're issued such surplus
amounted to more than SlO0.0000U0. IL now
amounts to SyS 072, ~. 30
Besides all this the Secretary Of the
treasury mad no authority whItcvcr to
issue bonds to increase the ordinary roy
enues or pay current expenses
cannot but think there has been some
CONFUSION OF IDEAS regarding the effects
OF the issue OF bonds, and the results
OF the withdrawal Of gold. 1t was the
iattef process and not the former that
~ substituting in the treasury nited
states notes and treasury notes for geld
increased by their amount the money
Whlch was in the first instance subject
10 ordinary government expenditure.
Although the law compelling an in
creased purchase Of silver by the govern
ment was passed on the l4th day OF Juiv
1880, the withdrawal of gold from tie
treasury upon the notes given IN paymeut
on sueh purchases did not begin until
october 1881. Immediately following that
date the Withdrawals upon both ibesa
notes and United States notes increased
very largely. and have continued to such
an extent since the passage of that law
that there has been more than thirteen
times as much gold taken out ii the
treasury upon United States notes and
treasury notes issued for silver purchases
ms was thus withdrawn during the eleven
ana half years Immediately prior there
TO and after the list day Of January. 1872
Wnen specie payments were resumed
1t Is neither unfair nor unjust to charge
large share of our present financial
perpleXities and dangers to the operation
al he lou gvf
the purchase of silver by the government,
which not only furnished a new treasury
obligation upon which its gold could be
Withdrawn. but so increased the fear Of
an overwhelming food of silver and a
forced descent TO silver payments that
even the repeal of these laws aid not en-
tirely cure the evils of their existence
While | have endeavored to make a
plain statement of the dsordered con1i-
ton OF our currency and the present
dangers menacing our prosperity ana 10
suggest a way which leads to a safer
financial system / have constantly had in
mind the fact that many of my ccun-
insist that the cure for the ills now
threatening us may be round
in the single and simple
remedy of the free coinage of silver They
contend that our minis shall be at once
thrown open to the free, unlimited and
Independent coinage of both gold and sill
yer dollars of fun legal tender quality,
regardless of the action OF any other gov
eminent 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 so cents in intrinsic worth of
silver in the silver dollar. Were there
Infinitely stronger reasons that can be ad-
duced for hoping that such action would
secure for us a bimetallic currency, NOV
ing on 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,
or act of legislation has ever been able
to hold the two metals together in free
coinage at ratio appreciably different
from that which is established in the
markets of the world, Those who be-
leve that our Independent free coinage
of silver at an artificial ratio with gold
of Is TO l would restore the parity be-
tween the metals and consequently be-
tween the coins oppose an unsupported
and improbable theory TO the general be-
lief and practice of other nations, ana
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 lawmakers, in attempting to
establish bimetallic currency, undertook
Tree coinage upon a ratio which acci-
dentally varied from the actual relative
values of the two metals not more than )
per cent. In both cases, notwithstand-
ing greater difficulties and cost of trans
portation than now exist the coins whose
| intrinsic worth was under-valued in the
IdNlp SIduudltg anu surely disappeared
from our circulation and went TO other
countries, where their real value was bet
ter recognized.
Acts of congress We're important to Gre
ate equality where natural causes de-
creed even slight inequality
Twice in our recent history we have
signally failed TO raise by legislation the
4 value of silver. Under an act of CON
/ gress passed in 1878 the government was
required for more than twelve years to
ENpend annually at least $4,000, $50 in the
! purchase of silver bullion for coinage The
/ act OF July II, 1890. in a still holder Effort
4 increased the amount of silver the gov
4 eminent was compelled to purchase ana
forced II 10 become the buyer annually of
J4ue0.e9 ounces, or practically the entire
product OF the mnts. nder both laws
silver rapidly and steadily declined in val
ne. The prophecy and the expressed hone
and expectation of those in the congress
who led in the passage OF the last mem
toned act that it would re-esta blish and
maintain the former parity between the
TWO metals are still fresh ina our memory
In the light of these experiences, which ac-
cords with the experiences of other ma
tons there is certainly no secure ground
for the belief that ali act of congress could
now bridge an inequality of fifty per cent.
between gold and silver at our present RAJ
ito, Tor IS there the least pOssihilitv thar