Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1895-12-06
ABOUT OUR FINANCES.
Present Situation Demands Prompt and
Wise TreAtnent.

Wise Treatment.
As we turn from q review of our foreign
relations to the contemplation of our ma
,ional financial situation. we are imme.
diately aware that we approach subject
OF domestic concern moe important than
any other that can engage our attention,
and one at present in such perplexing
and delicate predicament as to require
prompt and wise treatment.
The compulsory purchase and coinage of
silver by the government unchecked and
unregulated by business conditions and
needless of our currency needs, which for
m re than Is years diluted. our circu-
lating medium, undermined confidence
abroad in our financial ability, and ut last
eliminated in distress and panic at home
has been stopped by the repeal of the laws
which forced this reckless scheme upon
the country. This, together with the
amended tariff bill, notwithstanding their
extreme Importance and beneficent effects,
fall far short of curing the monetary evils
from which we suffer as a result OF long
indulgence in ill-advised financial ex-
pedieuts.
Greenbacks Discussed.
The currency denominated United States
notes and commonly known as green
backs was issued in large volume during
the late civil war intended originally to
meet The exigencies of that period.
large quantity of them however, were
kept on foot and mingled with the cur
rency Of the country so that at the close
Of the year 1874 thsy amounted to $751;
Immediately after that date and in Jan
uary, 1875, a law was passed providing
that on and after the lst of January, 1879,
the United States notes then outstanding
| should be redeemed in coin and in order
to provide and prepare for such redemp-
ton the secretary of the treasury was au'
thorized not only to use any surplus rev.
enues of the government but to issue
bonds of the United States, and dispose
of them for coin and to use the proceeds
for the purposes contemplated by the
statue.
In May, 1873, and before the date thus
appointed for the redemption and retire
ment of these notes, another statute was
passed forbidding their further cancella-
ton and retirement. Some of them had.
however, been previously redeemed and
cancelled upon the issue Of additional ma
tonal bank circulation as permitted by
the law of 1875, so that the amount out
standing at the time of the passage Of the
act forbidding their further retirement
was SAf. 6s1 .O18.
lrovl lunx VI the Law Of 1873.
The law OF IS did not stop at distinct
prohibition, bat contained, in addition,
the following express provisions: And
when any of said notes may be redeemed
or be received into the treasury under any
law from any source whatever and shall
belong to the United States, they shall not
be retired. cancelled or destroyed, but
they shall be reissued and paid out again
and kept in circulation"
The government was thus put in the
anamalous position of owing to the hold
ers of its notes, debts payable in gold on
demand, which could neither be retired
by receiving such notes in discharGing
obligations due the government nor can
celled by actual payment in gold. 1t was
forced to redeem without redemption and
to pay without acquittance.
There had been issued and sold s95 $780,
600 of the bonds authorized by the resump-
ton act of 1879, the proceeds of which,
together with other gold in the treasury,
created gold fund deemed sufficient to
meet the demands which might be made
upon it for the redemption of the out
standing OnlCou OLh:es HUGS. Lib luAu'
together with such other gold as might be
from time to time in the treasury available
for the same purpose has since been called
our gold reserve, and 500, OOO, 900 has been
regarded as an adequate amount to &C.
complish its object.
Shrinkags Of the Reserve.
The reserve had fallen in April, 1906, to
or, oil, 1880. It has from that time to the
present. with very few and unimportant
movements, steadily decreased except as
it has been temporarily replenished by the
sale of bonds.
Among the causes for this constant and
uniform shrinkage in this fund may be
mentioned the great falling of Of exports
under the operation Of the tariff law un-.
til recently In force. which crippled our