Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-12-03
well be remedied by better adapting the

banks of large capital to establish branches
In such localities as would serve the peo-
ple-so regulated and restrained as to Sc
cure their safe and conservative control
and management. "
But there might not be the necessity for
such an addition to the currency by new
issues of bank circulation as at first glance
is indicated. If we should be relieved from
maintaining a gold reserve under condi-
lions that constitute it the barometer Of
our solvency, and If our Treasury should no
longer be the foolish purveyor Of gold for
rations abroad or for speculation and
boarding by our citizens at home, I should
expect to see gold resume its natural and
FORMAL functions in the business affairs of
the country and cease to be an object at
tracing the timid watch of our people and
exciting their sensitive imaginations.
1 do not overlook the fact that the can
collation. of the Treasury notes issued I'M
der the silver-purchasing act of 1890 would
leave the Treasury in the actual ownership
of sufficient silver, including seigniorage,
to coin nearly $17S.00O,OOO in standard dol
lars. 1t Is worthy of consideration whether
this might not, from time to time, be con-
verted into dollars or fractional coin and
slowly put into circulation, as in the judg-
ment of the Secretary of the Treasury the
necessities of the country should require.
Whatever is attempted should be entered
uEcn fully approaching the fact that by
careless, easy descent We have reached
dangerous depth, and that our ascent will
not be accomplished without laborious toll
and struggle. We shall be wise if we real
ize that. we are financially i'll and that our
restoration to health may require heroic
treatment and unpleasant remedies.
In the present stage of our difficulty it is
not easy to understand how the amount of
our revenie receipts directly affects it. The
important question is not the quantity of
money received in revenue payments, but
the kind of money We maintain and our
ability to continue in sound financial con-
dition. We are considering the Govern
ment's holdings of gold as related to the
soundness Of our money and as affecting
our national credit and monetary strength.
If our gold reserve had never been i'm
paired; If no bonds had ever been issued TO
replenish 1t; If there had been no fear and
timidity concerning our ability to continue
gold payments; If any part of our revenues
were now paid in gold, and If we could look
to our gold receipts as a means of maintain
ing safe reserve, the amount of our reve-
nues would be an influential factor IN the
problem. But unfortunately all the circum-
stances that might lend weight to this con-
sideration are entirely lacking.
In our present predicament no gold is re-
ceived by the Government in payment of
revenue charges, nor would there be If the
revenues were increased. The receipts of
the Treasury, when not in silver certih-
Gates, consist of United States notes and
Treasury notes issued for silver purchases.
These forms of money are only useful to
the Government in paying it's current Or
binary expenses. and it's quantity in Gov
eminent possession does not in the least
contribute toward giving US that kind of
safe finarcial standing or condition which
is built on gold alone.
If 1t is said that these notes If held by the
Government can be used to obtain gold for
our reserve, the answer is easy. The peo-
pie draw gold from the Treasury on de-
mand upon United States notes and Treas
ury notes, but the proposition that the
Treasury can on demand iraw gold from
the people upon them would be regarded in
these days with wonder and amusement.
And even If this could be done, there is
nothing to prevent those thus parting with
their gold from regaining it the next day
or the next hour by the presentation of the
notes they received in exchange for it.
The Secretary of the Treasury might use
such notes taken from a surplus revenue to
buy gold in the market. OF course he could
not do this without paying a premium. Pri-
vate holders of gold, unlike the Govern
ment, having no parity to maintain, would
not be restrained from making the best
bargain possible when they furnished gold
to the Treasury; but the moment the Secre-
tary of the Treasury bought gold on any
terms above par he would establish gen.
hIa
breaking down the parity between gold and
silver which the Government is pledged to
maintain, and opening the way to new and
serious complications. In the meantime the
premium would not remain stationary, and
the absurd spectacle might be presented of
dealer selling gold to the Government,
and with United States notes or Treasury
notes In his hand Immediately camoring
for its return and resale at a higher
premium.
1t may be claimed that large revenue
and redundant receipts might favorably
affect the situation under discussion 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 concerned, by the
law Of 1878 forbidding their further retire.
ment. That statute in so many words pro-
vides 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 refuse to pay
out United States notes and Treasury
notes in current transactions when de-
manded and insist on paying out silver
alone and still maintain the parity between
that metal and the currency representing
gold. Besides, the accumulation in the
Treasury of currency of any kind exacted
from the people through taxation is justly
regarded as an evil, and it can not proceed
far without vigorous protest against an
unjustifiable retention of money from the
business OF the country and a denuncia-
tion of scheme. of taxation which 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 Govern
ment support that large sums can be gath
cred and kept in the Treasury Such con-