River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1895-12-05

and incomes of the citizens money so
much In excess of the needs OF govern
ment support that large sums can ie gath
cred and kept In the treasury. Such a
condition has heretofore In time OF SUR
plus revenue led the government torestore
currency to the people by the purchase of
It's unmatured bonds at large PREMIUM
and by a large increase OF It's DEPOSITS In
national banks. and we easily remember
that the abuse of treasury accumulation
has furnished most persn,aa l Ne. argument
in favor of legislation radically reducing
our tariff taxation.
Fear oyercomes sentiment,
II was when the stock OF goi began
rapidly TO fall that fright supsrvened
and our securities held abroad we're re-
turned for sale. and debts owed abroad
were pressed for payment In thu mean
time extensive shipments OF gold and
tossness and fright among our people at
home. Thereupon the general state OF our
funds exclusive of gold became also Inn
material 10 them, and they, too. drew gold
from the treasury for boarding against all
contingencies. This y plainly shown by
the large increase In the proportion OF gold
Withdrawn which was retained by our own
people as time and threatening incidents
prosrssssed During q, ,he od ,s oaa year snded
withdrawn from the treasury and about
$77. 100000 was sent abroad, while during
was drawn out, of which only about $685.
100000 was shipped leaving the large hal.
arce OF such Withdrawals 10 DE accounted
fur by domestic boarding
Cane Rely Upon Increased Revenues.
Inasinuch as the withdrawal Of our goli
has resulted largely from fright. there Is
nothing apparent that VIII prevent its con-
tinuanCe or recurrence. with its natural
consequences. except such a change IA our
financial methods as VIII reassure the
frightened aud make the desire for gold
less Intense II n not clear how an In
crease IN revenue. unless II be In gold, can
satisfy those whose only anxiety II % gain
gold from the governments store II can
not therefore be safe 20 rely upon increased
revenues as a cure for our present troubles.
To Maintain National Credit
Bonds were issued 10 obtain goli for lhe
maintenance OF our national credit As
has been shown. the sold thus obtained
has been drawn again from the treasury
upon United States notes ana treasury
promptly prevented II possible but these
notes having thus been passed 10 the treas
nty. they became the money 81 me govern.
funds aud there wac nothing to-sl0 but 20
use them n paying governments expenses
have been ISSUED has there been any con-
alteration OF IN. question Of paying tho
expenses Of government With their pro-
creds. There was no necessity 70 consider
that question. a. the time OF each bond
issue We had a safe surplus Ia the treas
nfy Tor ordinary operations, exclusive Of
{ the gold Ia our resfrye. Ia February issa
when the first issue ~ bonds WAS made.
such surplus amounted 20 over tlA.wD.oo0,
Ia November. when the second issue was
{ ~ De. Il amounted 90 more than 81. 10000.
and IN February, 1855. when bonds for the
u
E amounted 10 ~ IRE than sio.eo.ela Ii now
amounts 20 slS,0T. 80 %. Besides all this.
[ The secretary Of the trsa,surs had no sa-
( the ordinary revenues % Ray current ex-
Z ~ uHes.
SILVER Largely Responsible.
Although the Law compelling an incrt ased
I purchase Of silver ~ the government was
PASSED on the ifth day Of gtAy 1880. with
Z drawaln Of gold from the treasury upon the
I did not begin until October. 1871 inmedi-
ateiy following that date the Withdrawals
( upon both these notes and United states
+ notes Increased very largely ard have con-
tinned TO such an extent that EiRcs the
passage OF .nat Law there has beeh more
Z than 10 times as much gold taken Out Of
I the treasury ipon unitsd states notes and
treasury notes issued for silver purchases
I as was thus Withdrawn during the M
T the ia day OF January, ihTa. when specie
l payments were resumed. u i neither un-
fair nor unt1'st 10 charEe q large share %
I our present financial perpieNities and dam
] gers 20 theio Deration Of the laws o. 1875 and
j the government. which nor Only Furnished
new treasury Obligation upon wnteh it7
gold could be withdIawn. but - increasd
I the fear OF al oVerR helminE Hood OF silver
and "A forced descent 10 silver payments
/ taat even the repeal Of these laws did not
/ eGtirely cure the evils OF their existence.
A Hazardous Experiment
while have endeavored 10 make a plain
I statement OF the disordored condition Of
I our currency and the present dangers
menacing our prosperity. and 10 suggest
way. which leads 10 a safer financial sys-
I TEN, | have constantly had IN mind the
( fact that many OF my countrgmen, whose
sincerity ! do not DOUBT insist that the
cure for the Ills now treHteuiBg us may be
found Ia the single and simple remedy OF
/ the free coinage q silver. They contend
that our minis shall At once be thrown open
to the free, unlimited and independent
coinage OF both gold and silver of full
iegal-tsnder quality. researches Of The s &C;
view of the fact thst 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 % cents
IN intrinsic worth OF silver IN the silver dol
lar.
opposed to Our owa Experience.
Those who believe that our independent
free coinage of silver at an artificial ratio
with gold OF sixteen to one would restore
the parity between the metals, and conse-
quently between the coins. propose an I'M
supported and improbable theory TO the
general belief and practice Of other nations
and TO the teaching of the wisest states
men 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 the recent history we have sig-
naily failed TO raise by legislation the
passed In 1873 the government was re-
quired for more than Z years to expend
annually al least 81, 000.t00 in the purchase
Of silver bullion for coinage. The act of
July u. 1890. in still holder effort in
creased the amount OF silver the govern
I
forced ii to become the buyer annually of
54,000,O0O ounces, or practically the entire
product of our mines. Under both laws
silver rapidly and steadily declined in
value.
Dire Eject of Free Coinage.
In the light of these experiences, which
accord with the experiences of other ma
tons. there is certainly no secure ground
for the belief that an act of congress could
now bridge an inequality of 80 per cent.
between gold and silver at our present
ratio, nor is there the least possibility that
our country, which has less than one-sev-
enth of the silver money in the world,
could by it's action alone raise not only our
own but all silver to its lost ratio with gold
Our attempt to accomplish this by the free
coinage of silver at ratio differing widely
from actual relative values would be the
signal for the complete departure of gold
from our circulation. the immediate and
large contraction of our circulating med
inm, and shrinkage In the real value and
monetary efficiency OF all other forms of
currency as they settled to the level of
silver recommendation.
Has Faith in the People.
All history warns us against rash ex-
periments which threaten violent changes
in our monetary standard and the degrade
ton of our currency. The past is full of
lessons teaching not only the economic
danger. but the national immortality that
follows In the train of such experiments. l
will not believe that the American people
can be persuaded after sober elaboration
to jeopardze their nations prestige and
nostrums, nor that they will Yield 10 the
false allurements of cheap money when
they realize that 1t must result in the weak
ening of that financial integrity and
rectitude which thus far in our history has
been so devotedly cherished as one of the
traits of our Americanism.
Our country's Indebtedness whether
owing by the government or existing be-
tween individuals has been contracted
with reference to our present standing.
10 decree by act of congress that these
debts shall be payable in less value dollars
than those within the contemplation and
intention of the parties when contracted
would operate TO transfer by the fiat of law
and without compensation an amount of
property and volume of rights and inter
ests almost incalcuiable.
Must Maintain the Single Standard.
Those who advocate blind and head
long plunge to free coinage in the name
of bi-metalism and processing the be-
lief contrary to oil experience that we
should thus establish a double standard
and a concurrent circulation of both met
ais of our coinage are certainly reckoning
from cloudy standpoint. our present
standard of value is the standard of the
civilized world and permits the only BIZ
Is within the Independent reach of any
single nation. however powerful that ma
ton may be. While the value of gold
is steadied by almost universal CONNER
cial and business use. IL does not des-
pise silver nor seek its Punishment
There Is vast difference between a
standard of value and a currency for
monetary use. Standard must necessaril J
be fixed and certain. The currency may
he in divers forms and of various kinds. !
No silver-standard country has gold cur
rency in Giro ulation: but an enlightened
and wise system OF finance secures the !
benefit of both Ecld and silver as currency
and circulat ng Taedium by keeping the