The Penn's Grove record., 1895-12-06

49, NTG lawn Ouls u WHICH OILY AHNht
$66,OUq,0Oo was shipped, leaving the large
balance of such Withdrawals to be ac-
counted for hy domestic boarding.
lnasnuch ns the Withdrawal of our gold
has resulted largely from fright, there is
nothing apparent that will prevent its con-
tinuance or recurrence. with it's natural
consequence except such a change in our
financial methods as will reassure the
frightened and make the desire for gold
less intense.
To Preserve Our Credit.
1t is not clear how an increase in rev.
enue, unless II be in gold, can satisfy those
whose only anxiety is to gain gold from
the governments store. 1t cannot there
fore be safe to rely upon increased reve-
nues as a cure for our present troubles. 1t
is possible that the suggestion of increased
revenue as a remedy for the difficulties we
are considering may have originated in an
intinatlon or distinct allegation that the
bonds which have been issued ostensibly
to replenish our gold reserve were really
issued TO supply insufficient revenue. Moth
ing can be further from the truth. Bonds
were issued to obtain gold for the main
ltenance OF our national credit. As has been
shown, the gold thus obtained has been
withdrawn again from the Treasury upon
United States notes and Treasury notes.
This operation would have been promptly
prevented; if possible, but these notes hav-
Ing thus passed by the Treasury, they be-
came the money of the government, like
any other ordinary government funds, and
there was nothing to do but to use them
in paying government expenses when need
ed. At no time when bonds have been is
sued has there been any consideration of
the question of paying the expenses of the
government with their proceeds. There was
no necessity TO consider that question. As
| the time of each bond issue we had a safe
surplus in the Treasury for ordinary ope-
r%ations, exclusive of the gold in our reserve.
In February, 1894, when the first issue of
bonds was made. such surplus amounted
to over SlS,0O0,0O0; in November, when
the second issue was made, it amounted to
more than S42,0o0,00O, and in February,
1896, when bonds for the third time were
| issued, such surplus amounted to more
than $100.0 100000. 1t now amounts to $685.
EO72,420.30.
Besides all this, the Secretary of the
Treasury had no authority whatever to is
sue bonds to increase the ordinary revenue
or pay current expenses.
Confusion Of Ideas.
i cannot but think there has been some
confusion of ideas regarding the effects of
the issue of bonds and the results of the
withdrawal of gold. 1t was the latter
process, and not the former, that by sub
stituting in the Treasury United States
notes and Treasury notes for gold increased
by their amount the money which was in
the first instance subject to ordinary gov
eminent expenditure.
fAltDOueu Nv law COu1ptlllHk an lHCTeustu
purchase of silver was passed on the 18th
day of July, 1890, Withdrawals of gold from
1.-The Treasury upon the notes given In pay
ment on such purchases did not begin until
October, 1891. Immediately following that
date the Withdrawals upon both these
notes and United States notes increased
very largely, and have continued to such
an extent that since the passage of that
law there has been more than thirteen
! times as much gold taken out of the Urea
4 - .---. IL -
notes issued for silver purchases as was
thus withdrawn during the eleven and a
half years Immediately prior thereto, and
after the LIST day of January, 1879, when
specie payments were resumed.
cial system, | have constantly had in
O large share of our preset financial per-
plexities and dangers to the operation of
the laws of 1878 and 1890, compelling the
purchase of silver by the government.
which not only furnished a new Treasury
obligation upon which its gold could be
withdrawn. but so increased the fear of
the overwhelming flood of silver and a
forced descent to silver payments that even
the repeal of these laws did not entirely
cure the evils of their existence.
While l have endeavord to make n
plain statement Of the disordered condi-
ton of our currency and the present dam
gers menacing our prosperity, and to sug-
gest a way which leads to a safer inan-
Parity Of the Metals.
cial systems, | have constantly a in
mind the fact that many Of my countrymen
whose sincerity | do not doubt, insist that
the cure of thsills now threatening us may
he found in the single and simple remedy
of the free coinage of silver. They con-
tend that our mints shall be at once thrown
open to the free, unlimited and independent
coinage of both gold and silver dollars of
full legal tender quality, regardless of the
action of any other government and in
full view Of the fact that the ratio between
the metals which they suggest calls for
one hundred cents of gold in the gold
4 dollar at the present standard and only
fifty cents in intrinsic worth of silver in
the silver dollar.
We're there infinitely stronger reasons
than can be adduced for hoping that such
action would secure for us a bi-metnllic
currency moving on lines of parity, an
experiment SO novel and hazardous as that
proposed might well stagger those who be-
lieve that stability is an imperative condi-
ton of sound money.
No government, no human continuance
or act of legislation. has ever been able to
! hold the two metals together in free coin
| age at a ratio appreciablv different from
that which is established in the markets of
the world.
Against Free Coinage.
Those who believe that our independent
free coinage of silver at an artificial ratio
with gold of 10 to 1 would restore the pari-
ty between the metals. and consequently
between the coins, oppose an unsupported
and improbable theory to the general be-
lief and practice of other nations and to
the teaching of the wisest statesmen and
economists Of the world. both In the past
and present, and, what is far more conclu-
sive, they run counter to our W actual
experiences Twice in our earlier history
our lawmakers in attempting to establish
q bimetallic currency undertook free coin
age upon a ratio which accidentally varied
from the actual relative values of the two
metals not more than three per cent. In
both cases, Notwithstanding greater difficult
ties and cost of transportation than now
exist, the coins whose intrinsic worl- was
undervalued in the ratio gradually and
surely disappeared from our circulation and
went to other countries where their real
value was better recognized.
Acts of Congress were impotent to create
equality where natural causes decreed even