Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-04

NAtoC iioeSo III the treasury WDpr
received, aud thus preventing their pre-
sentatlon for gold Such retention to bt
ustIul, ought 20 be at least measurably
permanent, and this is precisely what is
prohibited, so far as United States notes
are concerned BY the law of 1873. for
bidding their further retirement. that
statute in so many words provides that
these notes when received into the treas
ury and belonging to the United States.
shall be paid out again and kept in cir
euiatlon. 1t will, moreover, be readily
see that the government could not refuse
TO pay out United States notes and ticas-
ury notes in current transactions when
demanded, and insist on paying out silver
alone, and still maintain the parity be
tween that metal and the currency repre-
sehtlng gold. Besides, the accumulation In
the treasury of currency of any kind ex-
acted from the people 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
anu dennnciation Of system of taxation
VII oh proves itself to be unjust when it
takes from the earnings and income of
the citizen money SO much in excess Of
the needs OF government support that large
sums can be gathered and kept in the
treasury. Such condition has heretofore
IN time of surplus revenue led the govern
ment to restore currency to the people by
the purchase of its uumatured bonds at a
large premium and by il large increase of
It's deposits in national banks, and we
easily remember that the abuse of treasury
accumulation has furnished most persua-
Sive argument in favor of legislation radi-
cSiiy reducing our tariff taxation. Per
haps it Is supposed that sufficient revenue
receipts would in a sentimental way i'm
prove the situation, by inspiring conf
dence in our solvency and aliaying the
fear of pecuniary exhaustion And yet
through all our struggles to maintain our
gold reserve, there has never been any APP
prehension as to our ready ability to pay
our way with such money as we had. and
the questions whether or not our current
receipts met our current expenses has not
entered into the estimate OF our solyency.
or course the general state of our funds
exclusive of gold was entirely immaterial
to the foreign creditor and investor His
debt could only be paid in gold, and his
only concern was our ability to keep on
hand that kind of money. On July /,
1892, more than a year and a half before
the first bonds were issued to replenish
the gold reserve, there was net balance
in the treasury, exclusive of such reserve,
of less than Sl3 900, coo; hut the gold re
serve amounted to more than Sll4, goo,
600, which was the quieting feature of
the situation. 1t was when the stock of
gold began rapidly 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 unfavorablc indications caused rest
lessness and fright among our people al
home Thereupon the general state of our
funds, exclusive Of gold, became also i'm
material to them, and they began to out
draw gold from the treasury for boarding
against all contingencies. This is plainly
shown by the large increase in the proper
ton of gold withdrawn which was re
tanned by our own people as time and
threatening incidents progressed. During
the fiscal year ending June 30, 1894, nearly
SS5, 600, 600 in gold was withdrawn from
the treasury and Shout S77, 900, 900 was
sent abroad, while during the fiscal year
ending June 80, 1926, over $l17, 900. 600
was drawn out, of which only about $685.
COO 600 was shipped, leaving the large
balance of such Withdrawals to be &C
counted for by domestic boarding. In
asmuch as the withdrawal of our gold has
resulted largely from fright, there is
nothing apparent that will prevent its
continuance or recurrence, with its natural
consequences, except such Il change in our
financial methods rs will reassure the
frightened and make the desire for gold
less intense. 1t is not clear how an in
crease in revenue unless it be in gold, can
satisfy hose whose only anxiety is to gain
gold from the governments store 1t
cannot therefore be safe to rely upon in
creased revenues as cure for our present
troubles 1t is possible that the sugges
ton of increased revenue as IA remedy for
the difficulties we are considering may
have originated in an intimation or dis
tinct allegation that he bonds which have
been issued ostensibly TO rcplensh our
gold reserve were really issued to supply
insufficient revenue. Nothing can be fur
Their from the truth Bonds were issued
10 obtain gold Tor 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 operation
would have been promptly prevented If
possible, but these notes having hus been
passed TO the treasury, they became the
money of the government like any other
ordinary government funds, and there was
nothing tn do but TO use them in pay ing
government expenses when needed.
AT no time when bonds have been is
sued has there been any consideration of
the question of paving the expenses of the
government with their proceeds. There
was no necessity to consider that question
At the time of each bond issue we had a
safe surplus in the treasury for ordinary
operations, exclusive of the gold in our
reserve. In February, 1891, when the first
issue of bonds was made, such surplus
amounted to over SIS, 600. 600; in Novem
Der when the second issue was made, it
amounted to more than $40, 900, coo and in
February. 1895, when bonds for the third
time were issued, such surplus amounted
to more than 800 600, goo II now
amounts to sos. 072, 420 30 Besides all
this, the secretary of the treasury had no
authority whatever to issue bonds to in
crease the ordinary revenues Or pay cur
rent expenses.