The record-union., 1895-12-04

If our gold reserve had never been
impaired, or if no bonds had ever been
| issued to replenish it, if their had been
no fear and timidity concerning our
ability to continue gold payment, If
any part of our revenues were
not paid in gold, and if we could look to
our gold receipts as means of main
tanning a safe reserve, the amount OF
our revenues would be an influential
factor in the problem, but unfortunate
ly all the circumstances that might lend
weight to this consideration, are en-
! tirely lacking in our present pred1ca-
ment No gold is received by the Gov
ernment in payment of revenue
charges, nor would there be if the rev.
enueS were increased
The receipts of the Treasury when
not in silver certificates, consists of
United States notes and Treasury notes
| issued for silver purchases. These forms
of money are only useful to the Govern
ment in paying its current ordinary ex-
penses and it's quantity in Government
possession does not in the least con-
tribute toward giving us tokens of safe
financial standing or condition, which
! is built on gold alone. If it is said that
these notes, if held by theGovernment,
can be used to obtain gold for our re-
serve, the answer is easy.
The people drew gold from the Treas
| uIy OH O0Iudiu upon the Oulleu 0IdlSS
| and Treasury notes, but the PROPOSE
ton that the Treasury could draw gold
! from the people upon them would be
regarded in these days with wonder,
and even if this could be done, there
! is nothing to prevent those thus part
ing with their gold from regaining it
| the next day or the next hour by the
presentation of notes they received in
| exchange for it.
| DADTrrv I0ITr,yUUU,NT COT II AND
SILVER.
The Secretary of the Treasury might
use such note taken from a surplus
revenue to buy gold in the market. OF
course, he could not do this without
paying a premium. Private holders of
gold, unlike the Government, having no
parity to maintain, would not be re-
strained from making the best bargain
possible when they furnish gold to the
| Treasury, but the moment the Secre-
| tary of the Treasury bought gold on
any terms above par, he would estab-
| lish a general and universal premium
upon it, thus breaking down the parity
between gold and silver, which the
Government is pledged to maintain, and
opening the way to new ana serious
complications.
In the meantime, the premium would
not remain stationary, and the absurd
spectacle might be presented of a dealer
| selling gold to the Government, and
with United States notes, or Treasury
notes in his hand, Immediately clamor-
| ing for sale at a higher premium. 1t
may be claimed that a large revenue
| and redundant receipts might favor
ably effect the situation under discus
sion, by affording an opportunity of
retaining these notes in the Treasury
when received, and thus preventing
their presentation for gold.
| Such retention to be useful ought to
| be at least measurably permanent,
and this is precisely what is prohibited,
so far as United States notes are con-
cerned, by the law of 1878, forbidding
their future retirement. That Statute
in 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 re-
| fuse to pay out United States notes and
Treasury notes in current transactions,
when demanded, and insist on paying
out silver alone and still maintain the
parity between thatmetal and the cur
rency representing gold Besides the
| accumulation in the Treasury OF cur
rency of any kind exacted from the peo-
pie through taxation, is justly regarded
as an evil, and it cannot proceed far
| without vigorous protest against an
unjustifable retention of money from
! the business of the country, and de-
| nunciation of a scheme of taxation
which proves itself to be unjust, when
| it takes from the earnings and income
of citizens money, so much in excess of
| the needs of the Governments support
that large sums can be gathered and
| kept in the Treasury
| Such a condition has heretofore in
| times of surplus revenue led the Govern
nent to restore currency to the people
| Oy the purchase of it's immatured bonds
| at large premium, and by a large in
crease 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.
| Perhaps it is supposed that sufficient
revenue receipts would, in a sentimental
way, improve the situation by inspiring
confidence in our solvency, and allay-
| ing the fear of pecuniary exhaustion,
and yet through all our struggles to
maintain our gold reserve there never
! has been any apprehension as to our
ability to pay our way with such money
as we had, and the question whether or
not our current receipts met our cur
| rent expenses has not entered into the
estimate of our solvency.
| OF course, the general state of our
| funds, exclusive Of gold, was entirely
! immaterial to the foreign creditor and
| investor. His interest could only be
paid in gold, and his only concern was
our ability to keep on hand that kind
| Of money.
THE GOLD RESERVE.
| On July l, 1893, more than year and
half before the first bonds were is
sued to replenish the gold reserve,
| there was a net balance in the Treas
ury, exclusive of such reserve, of less
than S13, 100000 but the gold reserve
amounted to more than 91l400O, 600,
which was the quieting feature of the
| situation.
| It was when the stock of gold began
radidly to fall that fright supervened,
and our securities held abroad were
| returned for sale, and debts owed
abroad were pressed for payment. In
the meantime, extensive shipments of
| gold and other unfavorable indications
caused restlessness and fright among
| our people at home. ThereupOn the gen
! eral state of our funds, exclusive of
gold, became also immaterial to them,
and they, too. drew gold from the
| Treasury for boarding against all con-
| tingencies. This is plainly shown by
| the large increase in the proportion Of
gold withdrawn, which was retained by
our people as time and threatening in
! cidents progressed.
During the fiscal year ending June
/ 2O 1904 ppar1v SS1 0D0 600 in gold wa {