The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-04
FINANCES OF THE NATION.
SILVER AND GREENBACKs.
LegisIatiOn as to Both, and the Raid
ON the Gold Reserve.


ON the Gold Reserve.
AS we turn from a review of our foreign
relation to the contemplation of our ma
tional financial situation we are Immediate
ly aware that we approach a subject Of
domestice concern more important than any
other that can engage our attention and
one at present in such a perplexing and
delicate predicament as to require prompt
and wise treatment. We may well be en-
couraged to earnest effort in this direction
when we recall the steps already taken
toward improving our economic and finan-
cial situation and when we appreciate how
well the way has been prepared for further
progress by an aroused and intelligent
popular interest in these subjects.
BY command Of the people, customs
revenue system, designed for the protection
and benefit of favored classes at the ex-
pense Of the great mass of our countrymen
and which while inefficient for the purpose
of revenue curtailed our trade relations
and impeded our entrance to the markets
of the world, has been superseded by a
tariff policy which, in principle, is based
on denial of the right of the government
to obstruct the avenues to our peoples
cheap living or lessen their comfort and
contentment for the sake of according
special advantages to favorites, and which,
while encouraging our intercourse and trade
with other nations, recognize the fact that
American self-reliance, thrift and ingenuity
can build up our country's Industries and
develop its resources more surely than
enervating paternalism.
The compulsory purchase and coinage Of
silver by the government unchecked and
unregulated by business conditions and
needless Of our currency need, which for
more than fifteen years diluted our cir
culatinR
abroad in our financial ability, and at last
eliminated in distress and panic at home,
has has bee, been recently stopped by the repeal OF
on the country. The things thus ac-
complished. notwithstanding their extreme
imhp0rtance ana penincent effects. fall far
which we suffer as result of long in
diligence in ill-advised financial expedi-
ents.
The currency denominated United States
notes and commonly known as greenbacks
was issued in large amounts during the
late civil war, and intended originally to
meet the exigencies of that period. 1t will
be seen by a reference to the debates in
Congress at the time the laws were passed
authorizing the issue of these notes.
that their advocates declared they were
intended for only temporary use and to
meet the emergency of war; In almost If
not all the laws relating to them some
provision was made contemplating their
voluntary or compulsory retirement. A
large quantity of them, however, We're
kept or. foot and mingled with the cur
rency OF the country, so that at the close
of the year 1874 they amounted to 1881 ,999 073
Immediately after that date and in Janu-
airy, 1875. law was passed providing for
the resumption Of specie payments by which
the Secretary of the Treasury was required
whenever additional circulation was issued
to national banks to retire United States
notes equal to 30 per cent. of such addi-
tional national bank circulation until such
notes were reduced to $500, 900 OO0 This law
further provided that on and after the 1st
doxr Of Inv <-1
notes then outstanding should be redeemed
in coin, and in order to provide and prepare
for such redemption the Secretary of the
the surplus revenues of the government
but to issue bonds of the United States
and dispose Of them for coin and to use the
the statute.
REDEMPTION FORBIDDEN.
In May. 1878, and before the date thus
appointed for the redemption and retire
ment Of these notes, another statute was
passed forbidding their further cancellation
and retirement. Some of them had. how
ever been previously redeemed and cam
celed on the issue of additional national
bank circulation as permitted by the law
of 1876, so that the amount outstanding
at the time of the passage of the act for
bidding their further retirement was $780,
6S1 ,0l6 The law of 1878 did not stop at
distinct prohibition. but contained in addi-
ton the following expressed provision
"And when any Of said notes may be re-
deemed 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
This was the condition Of affairs on the
first day OF January, 1879. which had been
fixed on four years before the date for
entering on the redemption and retirement
Of all these notes and for which such abun-
dant means had been provided. The
government was put in the anomalous situa-
ton of owing 10 the holders of its notes
debts payable in gold on demand which
could neither be retired by receiving such
notes in discharge Of obligations due the
government, Cancelled by actual paw.
ment in gold. IL was forced TO redeem
without redemption and TO pay without
acquittance.
There has been issued and sold sos 500 oO
of the bonds authorized by the resumption
act OF 1915. the proceeds OF which togethe
with other gold in the treasury, created (
| gold fund deemed sufficient to meet the de
mands which might be made on Il for tn,
| redemption OF the outstanding United State
| notes. This fund, together with such othe
| gold as might be from time TO time In tn,
| treasury available for the same purpose
| has been since called our gold reserve, ant
! &0o,000ooo has been regarded o. an ADEQUATE