Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1895-12-06

collation. OF the treasury notes Issued I'M
| leave the treasury In the actual ownerhsip
| OF sufficient silver. including seigniorage,
to coin nearly s17so0o,Coo in standard dol
| lars. 1t Is worthy OF consideration wheth-
| er this might not, from time to time, be
converted into dollars or fractional coin
aeWy ~ PVT ut into eircnlaop as In the
the necessities of the country should re-
quire. Whatever is attempted should be
entered upon fully approaching the fact
that by careless, easy descent we have
reached e dangerous depth, and that. our
aseent VII o not Pc Without
| wise If we realize that We are financially
| i'll and that our restoration to health MAY
require heroic treatment and unpleasant
| remedies.
| Question of Quality. Not Quantity.
| In the present stage of our difficulty it is
not easy to understand how the amount Of
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-
| ditions. 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, or il no bonds had ever been issued
and timidity concerning our ability to. CON
tinue gold payments; IL any part of our
revenues We're not paid in gold. and if we
could look to our gold receipts as means
| of maintaining safe reserve, the amount
| of our revenues would be an Influential
| factor in the problem. But unfortunately
| all the circumstances that might lend
| weight to this consideration are entirely
lacking. In our present predicament no
Is If e Moad
be If the revenues were increased. The re-
| ceipts Of the treasury. when not in silver
| and treasury notes issued for silver pur-
| chases. These forms of money are only
useful to the government in paying Its
n to <1J1n
| tity In government possession does not in
the least contribute toward giving us that
| kind of safe financial standing or condition
| which is built on gold alone.
Would Destroy the Parity.
II it is said that these notes If held by the
government can be used to obtain gold for
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 draw 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 regatning it the next day
OF the next hour by the presentation of the
The secretary of the treasury might use
| such not taken from a surplus revenue to
buy. gold in the market. OF course. he
| Private holders of gold unlike the govern
| ment having no parity to maintain, would
not be restrained from making the best
L
to the treasury; but the moment the secre-
tary of the treasury bought gold on any
terms above par he would establish gem
eral 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
and serious complications. In the mean
time the premium would not remain sta
tionary, and the absurd spectacle might
be presented of dealer selling gold to
the government, and with United States
/ notes
diately clamoring for its return and re-
sale at higher premium.
1t may be claimed that large revenue
and redundant receipts might favorably
affect the situation under discussion by
abordi nn;s an OPP Of retaining
and thus preventing their presentation for
gold Such retention to be useful ought to
Is precisely what is prohibited, as far as
United States notes are concerned by the
law law, Of 1878 l., forbidding their further re
provides that these notes when received
into the treasury and belonging to the
United States. shall be paid out again and
readily seen that the government could
not refuse to pay out United States notes
when demanded. and insist on paying out
silver alone. and still maintain the parity
between that metal and the currency rep
woald Be Unjust Taxation.
Besides the accumulation in the treasury
of currency of any kind exacted from the
people through taxation Is justly regarded
as an evil, and cannot proceed far without
vigorous protest against an unjustifablt
retention of money from the business O
scheme of taxation which proves itself t,
be unjust when it takes from the eaffiIIy,
and incomes of the. citizens money s,
much In excess Of the needs of govern
nent support that large sums can be gath
cred and kept, in the treasury Such
conc has heretofore in time of sur
= rn v,t TO- a,fc
currency to the people by the purchase O
its unmatured bonds at a large premium
national banks, and we easily remember
that the abuse of treasury accumulate
has furnished a most persuasive argument
In favor of legislation radically reducing
our tariff taXatio
Fear Overcomes Sentiment.
Perhaps 1t is supposed that suficien,
revenue re-, receipts would in sentimeta
confidence in our solvency and allaying thu
fear Of pecuniary exhaustion. And ye
gold reserve there never has been any ap
prehension as to our ready ability to pay
our way with such money as we had, and
the question whether or not our current
receipts met our current expenses has no.
entered into the estimate Of our solvency
OF course the I general state Of our funds
to the foreign creditor and investor. Hi.
debt could only be paid in gold and hi:
hand that kind of money
On July l. 1892. moro than year and 6
half before the first bonds We're issued tt
replenish the gold reserve, there was ne
balance in the treasury exclusive of sucl
reserve. of less than s1sOOo,oOo; but the golt
reserve amounted to more than s114. 600 900
which was the quieting feature of the sit
uation. It was when the stock of gold be
gan rapidly to fall that fright supervenet
and our securities held abroad were re
turned for sale, and debts owed abroad
We're pressed for payment. In the mean
time extensive. shipments Of gold an,
other unfavorable indications caused rest
, lcssness and fright among our people a
home. Thereupon the general state of gu
funds, exclusive of gold, became also i'm
from the treasury for boarding against al
contingencies. This is plainly shown b,
, the large increase in the proportion of gol
. people as time and threatening incident
] progressed. During the fiscal year ende
,, Jane 80, 1894, nearly ss5,oooooo in gold wa
$77,O0O.000 was sent abroad, while durin
> the fiscal year June 80, 1895. over Sill, 0OOt
Was GI Thsh only Se about s
!. ance of such Withdrawals to be accounte
!. for by domestic boarding
! Can't Rely Upon Increased Revenues.
Inasmuch as the withdrawal of our sol
E nothing apparent that will prevent its con
t tinuance or recurrence. with it's nature
consequences, except such a change in on
financial methods as will reasSure tn
. frightened and make the desire for gol
less intense. 1t Is not clear how an In
crease IN revenue, unless it be in gold. ca
satisfy those whose only anxiety is to gal
! gold from the governments store. 1t can
not therefore be safe to rely upon increase
revenues as cure for our present troubles
1t Is possible that the suggestion of in
creased revenue as a remedy for the diff
culties we are considering may have origin
ated In an tntfmation or distinct allegatio
that the bonds which have been issued. os
tensibly to replenish our gold reserve, wer
really issued to supply insufficient rev
!, enue Nothing can be further from tn
} truth.
To Maintain National Credit.