The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-29
HE SUGGESTS A MEASURE
SAYS ITS PASSAGE is NEEDED TO
MAINTAIN THE RESERVE,
And Asks SiIverites to Assist in Up
Eress Urged to Act at Once.

sideration of the Congress to the condition
of our national finances. and in connection
with the subject Endorsed the plan of cur
rency legislation which at that time seemed
to furnish protection against impending
danger. This plan has not been approved
by the Congress In the meantime the sit
uation has so changed and the emergency
now appears so threatening that deem it
my duty to ask at the hands of the legisla-
tive branch of the government such prompt
and effective action as will restore conf
dence in our financial soundnesS and avert
business disaster and universal distress
among our people.
Whatever may be the merits of the plan
outlined in my annual message as a REM
edy for Ills then existing and as safeguard
against the depletion of the gold reserve
that its reception by Congress In our pres
ent advanced stage of financial perplexity
necessitates additional or different legisla-
tion With natural resources unlimited in
variety and productive strength, and with
a people whose activity and enterprise seek
only a fair opportunity to achieve national
success and greatness. our progress should
not be checked by a false financial policy
and needless disregard of sound monetary
laws nor should the timidity and fear which
they engender stand in the way of our
prosperity. 1t is hardly disputed that this
predicament confronts US to-day. There
fore, no one in any degree responsible for
the making and execution of our laws
should fall to see a patriotic duty in hon
estly and sincerely attempting to relieve
the situation. Manifestly this effort will
not succeed unless 1t is made untrammeled
steadfast determination to resist the temp
tation to accomplish party advantages. We
may well remember that if We are threat
ened with financial difficulties all our people,
in every station of life, are concerned, and
surely those who suffer will not receive the
promotion of party interests an excuse
for permitting our present troubles to adj
vance to a disastrous conclusion. 1t is also
of the utmost importance that we approach
the study of the problems presented as free
possible from the tyranny of precon-
mon danger we may be able to seek with
unclouded vision a safe and reasonable pro-
THE REAL TROUBLE.
The real trouble which confronts
sists in lack of confidence, widespread
and constantly increasing, in the continu-
ing ability disposition of the govern
ment to pay it's obligations in gold This
lack of confidence grows to some extent
out of the palpable and apparent embar-
rassment attending the efforts of the gov
eminent under existing laws to procure
gold, and to greater extent out of the
impossibility of either keeping it in the
treasury or canceling obligations by it's
expenditure after it is obtained. The only
way left open to the government for pro.
curing gold is by the issue and sale of
bonds. The only bonds that can be SO
issued were authorized nearly twenty
years ago, and are not we'll calculated to
meet our present needs. Among other dis
advantages, they are made payable in gold
coin, instead of specifically in gold, which.
in existing conditions, detracts largely and
in increasing ratio from their desira-
bility as investments. 1t is by no means
certain that bonds of this description can
much longer be disposed of at a price
creditable to the financial character of our
government
ure O. the situation, however. remains to
be mentioned. 1t is found in the means by
which the treasury is despoiled of the gold
thus obtained without canceling a single
government obligation, and solely for the
png It abroad or Whose fears induce them
to hoard it at home. We have outstanding
about s5O0,0O0OOO of currency notes of the
government for which gold may be de-
manded; and, curiously enough the law
requires that when presented, and, in fact,
redeemed and paid in gold, they shall be
reissued. These same notes may do duty
many times in drawing gold from the
treasury; nor can the process be arrested
wise see an advantage in repeating the
operation. More than 500, 600, 600. in these
and, Notwithstanding such redemption,
they are still outstanding
THE BOND ISSUES.
Since the 18th day of January, 1884, our
bonded interest bearing debt has increased
s1OoOOO0O0. For the purpose of obtaining
gold to replenish our coin reserve two is
sues were made, amounting to $4,000, 900
each--one in January and the other in No
yember AS result of the first issue
there was realized something more than
s58. 600 600 in gold Between that issue and
the succeeding one in November, compris-
ing a period of about ten months, nearly
s163 100000 in gold drawn from the
treasury This made the second issue nee
essary, and upon that more than S5s,0oo.0o0
in gold was again r sH a Between the
time covering a period of only about two
months, more than $69000,000 in gold have
been drawn from the treasury. These large
sums of gold were expended without any
cancella<i lion of government obligations or
in any neranen. our Mag geeuniary s,tuatidn
The financial events of the past year sug-
gest facts and conditions which should GER
tainy arrest attention. More than $l72,OVo,-
900 in gold have been drawn out of the
treasury during the year for the purpose
of Shipments abroad or boarding at home.
While nearly one hundred and three mil
lions of this amount were drawn out dur
ing the first ten months of the year, a sum
aggregating more than two-thirds of that
amount being about Sixty-nine millions,
was drawn out during the following two
months, thus indicating marked aece.era-
ton of the depicting process with the lapse
of time The obligations upon which this
gold has been drawn from the treasury are
still outstanding and are available for use
in repeating the exhaustive operation with
shorter intervals our perplexities ac-
cumulate Conditions are certainly super
may be issued to replenish our gold less
useful for that purpose.
cumstanceS, absolutely necessary to the up
holding of our public credit and to the
maintenance of our high national character
Our gold reserve has again reached such a
stage of diminution as TO require its speedy
reinforcement. The aggravations that must
inevitably follow present conditions and
methods will certainly lead to misfortune
and loss not only to national credit
and prosperity and to financial enterprise
but to those of our people who seek en-
ployment as a means of livelihood and to
those whose only capital is their daily
labor. 1t win hardly do to say that
simple increase of revenue will our
troubles as the apprehension existing
and constantly increasing as to finan-
cial ability does not rest upon a calcula-
ton Of our revenue. The time has passed
when the eyes of investors abroad and our
peopIe at home are fixed the revenues
Of the government. Changed conditions
have attracted their attention to the gold
movement. There need be no fear that we
cannot pay current expenses with such
money as we have. There is now in the
treasury a. comfortable surplus of more
than $50 100000. but 1t is not In gold, and
therefore does not meet our difficulty.
A WORD TO SILvERITES.
cannot see that differences OF opinion
concerning the extent 10 which silver ought
70 be coined or used in currency should
interfere with the counsels OF those whose
| duty II is to rectify evils now apparent in
our financial situation. They have to con-
slider the question of national credit and
the consequences that will follow from its
-