The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1895-12-04

poot, for which appropriation was made last
session, have been Professionally filled by
trusted employees Of the department Of state
These apponteel, though now in Turkey, have
not yet received their eXequaturs.
The Consular Service.
In view Of the growth Of our interests in
foreign countries and the encouraging pros.
poets for u general expansion of our com
merce, the gu ,,tun of an Improvement in the
consular service has increased in Importance
and urgency.
urge such action by congress rs will per-
init the frequent and thorough inspection of
consulates by officers appointed for that pur-
pose or by persons already in the diplomatic
or consular service. The exf ense attending
such plan would be Insignificant compared
with its usefulness, and hope the legislation
necessary to set it on foot will be speedily
forthcoming.
The Financial Question.
As we turn from II review of our foreign re-
lations to the contemplation of our national
financial situaton we are Immediately aware
that we approach subject of domestic con
Germ more important than any other that can
crglge our attention, and one at present in
sucl pc rpleXing and delicate predicament a
to require prompt and wise treatment.
We may well De encouraged to earnest effort
in this direction when we recall the steps al
ready taken toward improving our economic
and financial situation and when we appre
ClilUe now well inc way mas Deen prephTtu ioI
further progress by an aroused and intelligent
popular interest i'll those subjects.
The compulsory purchase and coinage OF sill
yer by the government, unchecked and UNI
regulated by business conditions and needless
of our currency needs, which for more than 10
years diluted our circulating medium, under
mined confidence abroad in our financial abil-
ity, and at last eliminated in distress and
panic at home, has been recently stopped by
the repeal of the law which forced this reck'
less scheme upon the country
The things thus accomplished, notwithstand-
ing their extreme importance and beneficent
effects, fall far short of curing the monetary
evil from which we suffer u result of long
indulgence in ll-advised financial expedients.
The currency denomina,cd United States
notes and commonly known us greenbacSs was
issued in large volume during the late civil
war, and was intended originally to meet the
exigencies of that period. 1t will be seen by a
reference to the debates in congress ut the
time the laws were passed authorizing the
issue of these notes that their advocates de-
cared they were intended for only temporary
use and TO meet the emergency of war In a.
most if not all the laws relating to them some
provision was made contemplating their volun-
tary or compulsory retirement. large guam
tity of Them however, were kept on foot and
mingled with the currency of the country, so
that ut the close of the year 1874 they amounted
to S3sl ,0l901J.
Immediately after that date, and in January
1885, law passed providing for the re-
sumption of specie payments, by which the
secretary of the treasury was required, when
ever additional circulation was issued, to re-
quire national banks to retire United States
notes equal in amount to 50 per cent of such
additional national bank circulation until such
notes We're reduced to $500 900. This law
further provided that on and after Jan /,
1879, the United States notes then outstanding
should be redeemed in coin, and in order to
provide and prepare for such redemption the
secretary of the treasury was authorized not
only to use any surplus revenues of the gov
eminent, but to issue bonds of the United
States and dispose of them for coin, and to use
the proceeds for the purpose contemplated by
the statute.
In May, 1878, and before the date thus APP
pointed for the redemption and retirement of
these notes, another statute was passed for
bidding their further cancellation and retire
ment Some of them had however, been pre-
| viously re leemed and cancelled upon the issue
of additional rational bank circulation, as per.
mitted by the law of 1878, so that the amount
outstanding at the time OF the passage of the
act forbidding their further retirement was
| S3i6,6s ,0l6.
The law of 1875 did not stop at distinct prohi-
| bition, but contained, in addition, the follow
| ing express provison:
"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
| De ressued and paid out again and kept in
circulation"
This was the condition of affairs on Jan. !,
| 1879, which had been fixed upon four years be-
| fore he date tor entering upon the redemp-
| ton and retirement of all the se notes, and for
| which such abundant means had been pro-
| vded. The ernment was put in the anon
| alous situation of owing to the holders of its
| I
| could neither be retired by receiving such
| notes in discharge of obligations due the gov
eminent nor cancelled by actual payment in
gold
1t was forced to redeem without redemption,
| and to pay without acquittauce There had
been issued and sold s. 5,50J,000 of the bonds
authorized by the redemption act of 1875, the
| proceeds of which, together with other gold in
the treasury, created gold fund deemed SUI
| ficent to meet the demand which might be
made upon 1t for the redemption of the out
standing United States notes. This fund, to-
| gether with such other gold as might be from
time to time in the treasury available for the
same purpose, has since been called
Our Gold Reserve,
and Sl00,000,OOO has been regarded as an
adequate amount to accomplish its object.
This fund amounted Jan. !, 1879, to Sll4l9}-
800, and though thereafter constantly fuctuat-
ing, it did not fall below that sum until july
| establishment, ahis reserve amounted to less
than $l000VO,0JO, containing at that date only
$97 OF $3.50.
In the meartima, and in july 1890 an at
had been pass erecting larger governmental
| monthly purchases of silver than had been re-
quired undcr previous laws, and providi .
that in paymen. for such silver, treasury note,
of the United States should be issued, payable
on demand in gold or silver coin at the discre
ton of the secretary of the treasury. II was
however, declared in the act to be "the estab
lished policy of the United States to maintain
the two metals ON a parity with each other
upon the present legal ratio, or such ratio as
may be provided by law"
In view of this declaration it was not deemed
permissible for the secretary of the treasury
to exercise the discretion in terms conferr ID
on him, by refusing to pay gold on these notes
when demanded because by such discrimna ..
ton in favor Of the gold dollar the so.callod
parity of the TWO metals would be destroyed
and grave and dangerous consequences would
be precipitatcd by affirming accentuatinq
the constantly widening disparity between
their actual values under the existing ratio.
1t thus resulted that the treasury notes is
sued in payment of silver purchases under the
law of 1890 were necessarily treated as gold
obligations a. the option of the holder. These
I tI, l,,.-