The morning times., 1895-12-17
Mr.. GlRusLE'S REMEDY
from First Page,

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sumption act, could be lawfully reissued.
aud he held that they could: but he stated
that tits construction OF the law was con-
should be settled by a distinct provision Of
law. The result was that Congress passed
the act OF May 81, 1878, making 1t manda-
tory upon the Secretary OF the Treasury
70 reissue the uotes.
OLD LEGAL TENDER NOTES.
"since the passage of that act. tho right
and duty of the Secretary OF the Treasury
10 reissue the old legal tender notes. no
matter how received into the Treasury.
provided they belong 10 The United States.
has never Teen questioned In any quarter.
and. as to the Treasury notes issued under
the silver-purchasiilg act. they must be re-
issued when redeemed-n gold. or. II can
celed, silver dollars must be issued in their
place: for if this were not done. there wound
he a smaller amount OF such notes outstand-
ing than tile cost OF the silver buiilOn ana the
standard silver doAars coined tiiereiron
and held III the Treasury, and this condition
is expressly prohibited under the statute
under wnicn the notes were Issued. Whether
these notes are reissued or destroyed. and
standard silver dollars substituted for them.
The practical result is the same, for In both
cases the Secretary would be using notes re-
deemed in gold for the payment or the ordi-
nary expenses OF the government: III one
case by paying out the notes themselves.
and In the other by dra awing silver from
reserve fund ON account OF their cancelia-
zion, and then pa wing out the silver.
The CASH ba:a nee in the Irea sury on the
:! st day OF December, 1898. was Sl17.-
406. .3S6.62, being S9s s.o1..a2o. 80 In ex-
cess Of the actual gold reserve on that day.
and SIT, ,i06, ,3S6.G2 in excess of any sum
that IL would be, necessary TO use for re-
plenishinC mat fund IN case the Secretary
shGuid at any time be able to exchange cur
rency for gold. There is, therefore, no
reason tn doubt the ability of the govern
ncnt to discharge all its current obligations
during the present fiscal year, and have a
idrSc cash balance at its close, without I'M
posing additional taxa tianin any form upon
the people: but 4 adhere TO the opinion.
heretofore expressed that the Secretary or
The Treesury ought aiwa Us TO tia veauthcrity
20 issue and sell. or to use in the payment
Of expenses, short-tifdo bonds, bearing
low rate OF interest, 10 supply casual De-
rjcienccs in the revenue. Although former
recommendations upon tins subject can
not he strengthened by repetition, The sub
iet.t is OF such Importance That CONSIDER
II my duty to present 1t again TO the atteli-
lion OF Congress. AMI to express the hope
ifat it Will receive favorable considerations.
.'While tire situation does not require
any legislation for raising additional reve-
nue. by taxation at this tine, it Is such as
to require the striCtcst economy in appro-
UriationS and public expenditures. At
tIne when the people, upon whom the ex-
pense OF sustaining the government is i'm
posed, are compelled TO practice the closest
economy III their business and domestic ar
fairs In order 10 meet their obligatio ana
re-cStabiish their trade and industries, IL
IS more than ever the duty OF the pubic
authorities TO avoid waste ana extrafa-
gance in the approp.i a. ion and DISBURSEMENT
Of the revenues.
Nearly every appropriation is In terms,
Dr by necessary implication. direction 10
Inc executive authorities to expend the
money, and therefore, the responsibility
for an Increase or reduction of expenditures
rests primarily aud mainly upon Congress.
!t is certain tnat IL appropriations are not
n3de the money VIII not be expended, and,
Tor the reason Just stated, 1t sairuost equally
FasNFs.s slslN Ntlan
the money must be- expended. The power
II the executive officials 10 reduce expen-
iitires * limited TO the comparatively lew
cases in which the disbursement Is LETT to
tbeir discretion. and. however judiciously
this discretion may be exercised, the effect
upon the total outlay is scarcely apprecia-
ABOUT BOND ISSUES.
Between the 1st day of February. 1894.
tndths 5ihday OF .!arch. 1885. three issues
II bonds were made. amounting in The ag-
Sregate 10 S152.3l5, 400. The conditions
'xistiag [ Tie dates Ol the first two Of these
ssues. aud the results of their negotiation.
we're fully detailed in nay last annual re-
bort, aud need not be further GQticed at this
lFne. The payments into the Treasury on
tccount of the second bond safe were not
'ntireiy completed until after the LIST day
II December, 1894. and it soon became evil
lent that the transaction had not been eff
ectual 10 stop the drain of gold. In that
HUnth the Withdrawals amounted to Sal
507.221. ana curing the next, January,
4Stc. tUSs 10 Z, oc, Guu
hey continued without dimiuution during
The early days OF February. so that on the
Stu OF That month the reserve had been re-
duced to Sfl $40. ISL and several million
more bad been deman nded. part OF Which
vas taken out and afterward returned 10
he Treasury on account OF the temporary
restoration of confidence resulting from
he act that il became generally kuownthat
measures were a bout To Ice taken for the re-
plenisbme ut of The reserve.
"Tte large withdrawals In December.
1894, and IN January anp tue early part or
February, 1885. weredue almost entlrelyio
4 feeling OF fapprebepsionin in the ublic mind,
which increased in intensity from day 10
day until il nearly reached the proportions
OF "A panic. and ii was evident to all VITO
were familiar with the situation that ur-
less eflectual steps were promptly taken
20 check the growing distrust the govern
meut would bc compelled within Few DAYS
to suspend gold payments and drop to q
deprecated silver and paper stdnd3 rd.
More than $4,000 600 OF The amou mt with
dra WI during tue bricI period last nIeDiiUned
was not dema nded for export, but was
taken out by people VITO had become
alarmed On account OF the critical conGi-
ton of the Treasury in its relations 10 the
currency of The country.
a.ConpresS, although earnestly appealed
to for relief, having failed 10 make any
other provision for meeting the emer-
cency contract, the particulars of which
were Immediately communicated TO that
BODY was entered into on tie eth day Of
February 1895, for the purchase of B.,
100000 ounces of standard gold coin, at
th. price OF SI7.S044l per ounce, 10 he
paid for by tie delivery of United States
bonds, having thirty years TO run, 9Ed Lear