The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1895-12-04

E PRESIDENTS MESSAGE
lcoNcLuDEp FROM 1sr pAeE.l

Wy oo1 "a GU hOLlOs
l should ok poet to see gold
its natural and normal in the business
affairs OF the country, and cease to be
an object attracting the timid watch of
our people and exciting their sensitive
imaginations.
The Seignorage.
I do not overlook the fact that the
cancellation Of the Treasury notes
issued usder the silver purchasing act
Of 1890 would leave the Treasury in the
actual ownership of suf1cient silver
including seignorage to coin nearly
SITS 900, 600 in standard dollars. 1t Is
worthy Of consideration whether this
might not, from lime to time, be con-
verified into dollars or fractional coin and
slowly put into circulation as the
Judgment Of the Secretary OF the Treas
ury or the necessities of the country
should require.
Whatever Is attempted should be
entered upon, fully a%ppreclatirg
the fact that by careless, easy
descent we have reached q dan
gerous depth and that our ascent
will not be accom- plished withoutlabor-
GUS toll and struggle. We shall be wise
if we realize that we are financially i'll
and that our restoration to health may
require heroic treatment and unpleasant
III Iu0 pEeSeHb bLHR0 OIL OUT
difficulties it is not easy to understand
how the mount Of our revenue receipte
are affected. The important question
is not the quantity of money received
in revenue payments, but the kind OF
money we maintain and our ability to
continue in sound financial condition.
We are considering the Governments
holdings as gold 90 related TO the
s~oundness Of u money and as affecting
our national credit and monetary
strength. II our gold reserve had never
been impaired; if no bonds had ever
been issued to replenish it; II there had
been no fear and timidity concerning
our ability to continue gold payments;
II any part OF our revenues were now
paid in gold, and If we could look to our
gold receipts as q means Of maintaining
q safe reserve the amount OF our rove
nues would be an influential fact in the
matter.
Under he circumstances that might
lend weight to this consideration are
entirely lacking. In our present predi-
cament no gold is received by the Gov
eminent In payment OF reven ne charges,
nor would there be if the revenues were
increased. The receipts of the Treasury,
when not in silver certificates, consist
OF United States notes and Treasury
hOsSo " oiitCI puICuh6tb. IQGS6
forms Of money are only useful to the
Government in paying it's current ordi-
nary expenses and It's quantity in Gov
eminent possession does not in tina least
contribute toward giving us that kind
OF safe financial standing or condition
which is built on gold alone.
II IL Is said that These notes IL hold
by tho Government can be used 10 OBJ.
tain gold for our reserve, the answer is
easy. The people draw gold from the
Treasury on demand upon United States
notes aid Treasury notes, but the
proposition that the Treasury can on
demand draw gold from the people
would be regarded in these days with
wonder and amusement, and even if
this could be done there is nothing to
prevent those parting with their gold
from regaining it the next day or the
next hour by the presentation Of the
notes they received in exchange for 1t.
The Secretary OF the Treasury might
use such notes taken from q surplus
revenue to buy gold In the market. OF
course he could not do this without pay
ing a premium TO private holders Of
gold, who, unlike the Government,
having no parity to maintain, would
not be restrained from making the best
bsrgain possible when they furnish gold
to the Treasury; but the moment the
Secretary of the Treasury bought gold
on any terms above par he would estab-
lish a general and universal premium
upon 1t. thus breaking down the parity
between gold and silver, which the Gov
eminent is pledged to maintain, and
opening to new and serious ccm plic b.
tionS.
In tho meantime the premium would
not remain stationary and the absurdity
might be presented of a dealer in gold
TO the Government and with the Unite
States notes CIR Treasury notes in his
hand Immediately clamoring for its re-
turn and resale at a higher premium.
1t msy be claimed that large and abund-
ant receipts may faVorably affect the
situation under discussion by affording
an opportunity OF retaining these notes
In the Treasury when received and thus
preventing their presentation for gold.
such retention to be useful ought to be
at least measurably permanent, and this
is precisely what happened 90 far SO the
United States and notes are concerned
by the law OF 1878 %forbidding their fur
ther retirement. The statute In so many
words provides that these notes when
received into the Treasury and belong
ing to the United States shall be paid
out again and kept in circulation"
1t will moreover be said that the
Government should not refuse to pay
out. United States notes and Treasury
notes IN current transactions when
demanded and insist in paying OUT
silver alone and still maintain the
parity between hat metal aud the cur
rency representing gold, besides the &C
emulation in the Treasury of currency
OF any kind exAcsed from the people
through taxation, il Justly regarded as
an evil and 1t canno proceed far with
out vigorous protest against an iDiusti-