Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1895-12-27
MUST CONSIDER THE FINANCES

MUST CON6IDER THE FINANCES
The Presidents message TO Congress ask
ing that no recess be taken for Christmas
until some action is had to relieve the finan.
cial situation is a needed reminder to our
legislators that the maxim Cuisines before
pleasure" requires immediate application.
The gold reserve is below $4,000 00.-
There have been heavy Withdrawals of gold
from the gold reserve for shipment abroad
and the slump in the foreign market for
American securities indicates even larger
Withdrawals Of gold for shipment 10 the near
future. There was severe fall In the prices
oil our securities in the American markets
also, with the result of number of failures
in New York, Philadelphia and Boston The
situation, in short, has some of the features
Of the panicky time when Congress repealed
the Sherman silver act to prevent an imme.
diate tumble to the silver basis. The sever
ity Of the crisis is intensified, If not created,
by the wild lingo proceedings at Washing
ton which influence capitalists everywhere
TO take in sail and prepare Tor war. Hostii.
ties will doubtless be averted by wiser coun
sells, but great deal oil harm and loss has al
ready been inflicted on innocent people.
The plan for the correction OF the finan.
cial evils Of the day, outlined by the Presi-
dent In his message, and given in full in
Secretary Carlisle's report, is undoubtedly
the correct one, however distasteful IL may
seem to Congress. The $4S5, 100000 of out
aiandinu Uraan hacka md Sharrnon pntap n IN
the means by which the treasury is depleted
Of Its gold, and by which apprehensions as
TO the ability of the treasury to continue
gold payments are excited, and the only
sure remedy is TO retire these gold demand
notes and cancel them. Secretary Carlisle
asks for authority TO retire and cancel them
by the issue of long term per cent bonds,
Tor which they would be exchanged. This
would be the cheapest way. The govern.
ment would save money by paying per
cent. instead of per cent. which is the 10
terest rate required to be paid on the bonds
issuable under existing law. If Congress
does not authorize Mr.. Carlisle to proceed
as be suggests In his report, the alternative
is to continue the issue of 4 per cent. bonds
in exchange for gold whenever the decline
of the gold reserve seems to be alarming the
business community.
In view of the probability that Congress
will decline to authorize the retirement of
the greenbacks, it remains to be considered
whether under existing law the end in view
may not be effected, provided the President
and Secretary should feel compelled TO act
upon their conviction that the retirement of
some part at least of the greenbacks and
Sherman notes is necessary. A suggestion
has been made by ]. II. Cowperwait, of
tually retired by an issue of bonds under
existing law in exchange for "any kind of
government money" This authority adj
vises Mr.. Carlisle ITO sell whatever quantity
OF bonds might prove TO be necessary in
order to pot in the treasury the paper money
which otherwise is likely to be presented
for redemption" Whatever paper money
is taken into the treasury under this plan
would be withdrawn from circulation
There is already large surplus in the
treasury over and above the probable ex-
pepditures in the next few years, and any
addition made to the amount would be per-
manently lodged in the Secretary's hands.
A bond issue of $50,O0o,0O0 would relieve,
it is held, the glut of money in New York |
which permits exports of gold-the only |
exportabe variety of our money. Scarcity
of money, In short, would prevent the ex
portation Of any sort of money. 1t would
create paying demand which might even
cause gold to be imported. Nobody would
misuse the greenback to get gold from the
treasury for export if it would pay better to
keep the gold in this country. Such is the
theory. To put it into practice would re.
luire courage and backbone, but the ad-
ninistratlon is credited with the requisite
mount of these virtues. Its value, il any,