The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-17

certain that, II our progress II not checked
Nv a repetition o. large demands upon cur
resources or bT q failure 20 meet the Just
expecta tons OK the peoS,le In respect % TIE
reforms ton OF our fiscal system, we are
snfer1ng upon "A era Of material grow n
and development Tot SURPASSED IA cur BIS
tory. The safety OK the existing sftl4a-
don IL. however. constantly uenacsds ana
our further progress toward ne cor1pfets
restoration OF confidence ard prosperity
IL seriously frnpeaed. by the defsets n
our currency laws. and DOUBT ana 0Eiees-
tainfy still prevailing In ire puosic I'm
and especially abroad, concerning We - :
turs monetary policy OF the govern H. IT,
Until these defects in our laws are rene
died and those doubts are removed, tneFe
can be no satisfactory assurance O III
rnurify from periodical Disturbances grow
ing csst Of the obligations which the GOV
ernr7ent has been compelled 70 assume n
relation 20 the currency. oar past eAp1-
Renee with the United States notes and
the treasury notes has clearly sao~h tfi'At
ire policy OF attempting to retain these
obligations of the government permanent
IL as part OF our circulating rleGiufa ana
10 redeem them IA coin on prese1tation
and reissue them after redemption must
be abandoned. or that such means must
he abandoned. or that sucn means must
DO If once provided as VIII have ter
Aenrv 70 facilitate the efforts o. the secre-
fary to accumulate and maintain a com
reserve sufficient In amount 20 keep the
public constantly assured % the stabliltE
OF our entire volume % currency and o.
our ability at all times 20 preserve equal
tfv fu the exchanges bic value OF It's various
parts The latte alternative, which. n
my opinion, ~ adopted. would not AFFORD
the relief demanded by the existing situa-
ton, necessarily involves such large IN
crease cf the iuteresf-bearing public debt
from time 10 time and would impose per-
ruanently upon the government such er-
goneous and inappropriate duties in reia-
ton 10 the paper currency OF the country.
that Il ought not to be favorably enter
tanned except as a last resort In the strug-
gle for the maintenance OF public faith
and the preservation OF the inyiolabihty OF
private contracts"
'~rhe issue OF bonds" Carlisle says, 70
procure coin fer the reserve which IL the
only efiectuai method now available under
ths law, will, gniess conditions when nave
already been developed By the present poll
icy are radically changed. ultimately result
IN the creation OF a public deot much larger
than would be required 20 retire and cancel
the notes. and the annual interest charge
would be much greater than IL would n
necessary 20 incur on a new issue or bonds
adapted TO the present circumstances or tne
government and the weil-known preferences
be made % keep the United States notes
and treasury notes permanently In cireula-
ton by Te.Sg1es after redemption. and the
government is 10 be permanently charged
with the duty o. sustaining the value OF all
our currency, paper and coin alike. the
conclusion can not be avoided that the pol
fey OF issuing bonds for the accomplish
ment of these purposes must also become
permanent. and such additional powers
must be conferred upon the secretary as
will enable him 10 execute the laws Telai-
ing TO these subjects with the least posi-
BILE disturbance Of the business affairs OF
the people ard the least possible charge on
The treasurer. | am thoroughly convinced
that this policy ought not to be continued.
but that the United States treasury notes
should be retired from circulation at the
earliest practicable day. and the govern
ment should be wholly relieved from the
responsibility OF providing a credit curren-
cy for the people. IL would be difficult.
~ not impossible. 10 devise more incon-
venient. expensive or dangerous system
than the one now I'm operation under the
laws providing for the issue, redemption
and reissue CT legal tender notes By the
government
There has never been a time since the
close OF the war when the gradual
retirement and cancellation OF the
United States notes would not have
been benefit 10 the country, nor has there
ever been a time when the issue OF addi-
t.onal notes OF the same character would
not have been Injurious 10 the country. IL
our legal tender notes were retired there
is abundant reason 70 believe that a very
large amount of gold which has been ex-
cluded from tho country by the excessive
use OF silver and paper In our circulation
would promptly return TO take its place IN
our currency and constitute a permanent
part OF our medium of exchange. a country
having such extensive trade relations with
other nations as VIC now enjoy can not
now be deprived or It's proper share OF tho
worlds stock OF money. and II It adopts
and adheres to a sound and stable currency
system at home Il VIII get the best money
the world has. because no other kind Is ever
used ,n international transactions. As long
as the government leaves our people rea-
sonably free 20 trade abroad and does not
make any kind Of paper legal tender IN tho
payment Of the debts II can not materially
or ihjuriously contract the currency by
the withdrawal OF rs own notes. The re-
tirement and cancellation OF the legal ten
der notes would not necessarily produce any
contraction OF the circulation. and II such
n result should follow and continue for any
considerable period. u would DE a demon
stration Of the fact that the volume OF tho
currency previously existing was not need
cd In the business OF the people Whenever
quirements OF trade. The deficiency will
be supplied either from abroad In exchange
for our products and securities. or by the
banks az home. or both.
THE United States notes and the treas
ury notes issued in payment Tor silver bull
Ion. together amounting at the beginning
OF the year to 2Gl2.olS. have been used
ana are atiA being USED TO withdraw gold
from lh= government whenever our own
people Or tbs government or people OF 9th.
er countries see proper 70 demand IL for
any purpose and under the laws now cx,
tsting the secretary OF the treasury has
no means or complying with these de
mands except by the Issue and sale Of In
terest- bearing bonds under the act or Jan
uary IL. fss5. or by the purchase Of gold
coin With bonds or notes 81 the United
sta tes under section $40 cf the rcviset
atatutes. Against these demands the
treasury has no available means OF dc
Tense except az the sArrice Of the publl,
credit and the immediate depreciation al
the entire volume OF our currency. Ions
adherence "a a false system has to a rrea1
extent undermined our national credit
So far ne & = related TO the maintenance,
OF sound currency. ard p must BE- re
coUstVueted-Dot merely prcpQcd up rs
fraN and temporary supports. No sur
plus revenue. however large. could extri
cate rs from Our present difficulties or CIV.
assurance OF safety In she future uajcs
e should 10 required 20 - paid On eoil
under system which would exempt IN,
government from the obligations 20 fgrn
ish the gold when demanded 20 be used r.
making the payments. and a. is scared,
necessary - suggest that such a svsfeu
IS Impossible as long as thc United State
rotes ana treasury notes are kept ln cir
cuIatlon ani are refcerrahl IN gold h-
the government itsclf en- presentation. Th,