The Union times. [volume] (Union, S.C.) 1894-1918, 1895-12-13
oun FINANCIAL srruArron

aware that we approach subject OF domes-
tic concern more important than any other
that can engage our attention, and one at
present in such a perploxing and delicate.
predicament as to require prompt and wise
treatment.
BY command OF the people customs reve-
nue. system, designed for the protection and
benefit of favored classes at the expense OF
the great masses OF our countrymen, and
which, while inefficient for the purpose of
revenue, curtailed our trade relations and
impeded our entrance to the markets OF the
world, has been superseded by a tariff
policy, which In principle is based upon
denial OF the right OF the government to
obstruct the avenues to our peoples cheap
living or lessen their comfort and content
ment. for the sake OF according especial ad-
vpntages to favorites, and which, while
encouraging our interior and trade. with
other nations, recognizes the fact that Ameri-
can self-reliance, thrift and ingenuity can
build up our country's industries and develop
its resources more surely than an enervating
patcrnaism in February, 1895 therefore, the
situation was exceedingly critical.
The results Of prior bond issues had been
exceedingly unsatisfactory, and the large
Withdrawals OF gold Immediately succeeding
to their public sale in open market gave rise to
a reasonable suspicion that a large part of
the gold paid into the treasury upon such
sales was promptly drawn out again by the
presentation of United States notes or treas
ury notes and found its way to the hands OF
those who had only temporarily parted with
The message then ia kes up the repeal Of
the silver purchase clause. says 1t under
mined confidence and produced the panic.
Tho history of the issue and partial redemp-
elon Of United States notes Is given at length.
GOLD RESERVE.
Stress is laid on the Importance OF the gold
reserve. Loss Of gold is attributed to tho
existence OF Treasury notes. Tho rise and
| fall OF the reserve is followed, and the histo-
| ry of the bond issues, matters that are fami-
| liar to our readers, are rehear rsed in detail.
Then follows a history of the contract with
tho bond syndicate.
81 have never had the slightest misgiving
| concerning the wisdom propriety OF this
arrangement"
As to further gold Withdrawals it says:
| Quite large Withdrawals for shipment in tho
| immediate future are predicted in we'll in
| formed quarters. About $1G,000,000 has
| been withdrawn during the month of Novem-
Der. The foregoing statement Of counts and
| condition. develops the fact that after in
| creasng our interest bearing bonded indebt-
| edness more than S162, 100000 to save our
| gold reserve. we arc nearly where we started,
having now in such reserve 1888, 9G6, as
| against 500, i3s.37T in Fob. 1894, when the
| first bonds were issued.
The government has paid in gold moro
| than nine-tenths of its United States notes
| and still owes them all. 1t has paid in gold
| about one-half of its notes given for silver
| purchases without extingulshinS by such
| payment one dollar of these notes. The
| edness of S95, 500, 900 in establishing II gold
reserve. and OF S162, ,3l5, 400 in efforts to
| maintain it.
| FAvoRs RETIREMENT OF aREENBACKs.
Trouble is found in the retirement and can
| collation. Of our United States notes, common
ly called greenbacks, and the outstanding
| treasury notes issued by the government in
1880
believe this could he quite readily accom-
| plished by the exchange of these notes for
United States bonds of small as well as large
denominations, bearing u low rate OF inter-
| est.
The currency withdrawn by the retirement
OF the United States notes and treasury notes,
amounting to probably less than $4S6, 900, 900,
might be supplied by such gold as would be
tL u 3sf nat national in SaSks Ha iasFe"se In
think they should be allowed TO issue cir
culation equal to the par value of the bonds
they deposit to secure 1t, and that the tax on
their circulation should be reduced to me-
fourth OF ono per cent, which would un-
ooubtediy mcct all tho expense tho govern
! ment incurs on their account
In general way tho President proceeds to
| intimate that tho establishment OF State
banks may be necessity. AS to silver coin
age, he says:
! 1 do not overlook the fact that the cance,la.
ton oil the treasury notes issued under the
SILVER purchasing act OF 1890 would leave tho
treasury in tho actual ownership of sufficient
silver including scigniorage. to coin nearly
$17S, ,0OO, 600 in standard dollars. 1t is WORTHY
| OF consideration whether this might not.
| from time to time, be converted into dollars
| or fractional coin and slowly put into circu-
| lation as in the judgment of the Secretary
OF the Treasury tho necessities of the coun-
| try should require.
BIMETALLIsM IMPOSSIBLE
No government. no human contrivance or
act oi legislation. has ever been able to hold
| tho two metals together in free coinage Mt a
ratio appreciably different from that which Ia
established IN the markets OF the world
Those who believe that our independent free
coinage OF silver ut an artificial ratio with
gold OF IL to would restore the parity be-
tween the metals, and consequently between
the coins, oppose an unsupported and i'm
probable theory to tho general belief and
practice OF other nations and to the teach
ing OF the wiscst statesmen and economist OF
the world both in the past and present
The President then went on to argue tho
impractability OF bimetalism, upheld the gold
standard as the only true means of value
holding that lit does not despise silver nor
seek its punishment" and that ..such a
standard also gives free scope for the use and
expansion of safe and conservative credit"
He urges tho advocates of free coinage of
silver to re-examine their views and beliefs
in tho light OF patriotic reason and familiar
experience, and to weigh again and again
the consequences Of such legislation as their
efforts have invited. Even the continued
agitation of the subject adds greatly to the
difficulties OF a dangerous financial situation
already forced upon u.s.
In conclusion especially entreat the peo-
pie representatives in the Congress- who are
charged with the responsibility of inaugura-
ting measures for the safety and prosperity
OF our common country to promptly and ef-
fectively consider the ills of our critical fl
nancial plight. have suggested a remedy
which myjudgment approves.
desire, however, to assure the Congress
that am prepared to cooperate with them
i'll pcrlccting any other measure promising
thorough and practical relief and that | will
GLADLY labor with them In nYnrx nntrinti,. On