The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-17

ly as a part of our circulating medium
and to redeem them in coin on presenta-
ton and reissue them after redemption
must be abadoned, or that such means
must be at once provided as will have
tendency to facilitate the efforts of the
secretary to accumulate and maintain
coin reserve sufficient in amount to keep
the pubic constantly assured OF the sta
bility of our entire volume of currency
and of our ability at all times to pre-
serve equality in the exchangeable value
of its various parts.
THE issue of bonds to procure coin for
the reserve, which is the only effectual
method now available under the law. will
unless the conditions which have already
been deplored by the special policy are
radically changed ultimately result in the
creation of public debt much larger
than would be required to retire and cam
Gel all the notes; and the annual interest
charge VIII be greater than ii would be
necessary to incur on new class OF
bonds adapted to the present circum-
stances of the government and the well
known preference of investors IT, how
ever, an attempt is to be made to
keep the United States note and treasury
notes permanently in circulation by is
sues after redemption and the government
is to be permanently charged with the
duty OF sustaining the value of all our
currency, paper and coin alike, the con-
clusion cannot be avoided that the policy
of issuing bonds for the accomplishment
of these purposes must also become per-
manent, and such additional powers must
be conferred upon the secretary will
enable him to execute the laws relating
10 these SUBJECTS with the least
possible disturbance of the bust
ness affairs of the people, and the least
possible charge uuon the treasury. |
am thoroughly convinced that this policy
ought not to be continued, but that the
United States notes and treasury notes
should be retired from circulation at
the earliest practicable day, and that the
government should be wholly relieved
from the responsibility of providing a
credit currency for the people.
legal tender
there is abundant reason to believe that
a very large amount of gold which has
been excluded from the country by the
excessive use of silver and paper in our
circulation, would promptly return to
take its place in our currency and con-
stitute a permanent part of our medium
of exchange.
THE retirement and cancellation of
the legal tender notes would not neces-
circulation; and if such a result should
follow and continue for any considerable
period, IT would be a demonstration of
the fact that the volume of the currency
previously existing was not needed in
the business of the people. for whenever
the volume is reduced below the actual
requirements of trade, the deficiency viii
be supplied either from abroad in ex-
change for our products and securities,
or by the banks at home, or by both"
After discussing at considerable length
the disturbances to the country caused
by the silver purchasing act, Secretary
Carlisle continues as follows: 1.-THE great
of our financial difficulties, is one of the
effects produced by a defective curren-
cy system and a failure to recognize
this important fact will lead us far astray
in our search for an adequate remedy.
1T is true that the tariff act of 1890
which remained in force until after the
close of the fiscal year 1894, had greatly
reduced the revenue derived from GUS
TOMS and that the expenditures of the
government were increased from $3lS, 0i0,-
40 during the fiscal year of 1890 to $685.
during
it is not probable that there would have
been any considerable excess of expendi-
people had not been interrupted by the
disturbances growing out of the un@ltis-
factory condition of our currency.
Remedies which might nave been more
or less effective under other circum-
stances cannot be in the least degree eff
fective now, and it would be futile and
dangerous at this time to attempt cor
rection of our financial disorders other
wise than by a total removal of their
causes.
mo surplus revenue, however large,
could extricate US from our present diff
ficultieS or give assurance of safety in
the future, unless ii should be required
to be paid in gold under system which
would exempt the government from the
obligation TO furnish the gold when de-
manded to be used in making the pay
ments; and 1t is scarcely necessary to
suggest that such a system is impossible
as long as the United States notes and
treasury notes are kept in circulation
and are redeemable in gold by the gov
eminent itself on presentation.
lowing to the peculiar character of
our currency the ability of the treasury
to hoard United States and treasury notes
is limited to a certain amount-which can
not be definitely determined in advance
and if it should, after that amount has
been reached, refuse to pay out these
notes in making disbursements at the
places where our customs are collected
the immediate result would be that nearly
all payments to the government would be
made in silver certificates, which it is
bound to take, but can compel no one else
to take. There would be a stream of these
non-legal tender certificates constantly
flowing into the treasury, and it would
receive scarcely any more United States
notes or treasury notes as parts of the sur
plus revenue, but would soon be COMPEL
ed to pay out those already accumulated,
or pay gold or break down in its operations
at the sub-treasuries. This result has
been avoided heretofore only by paying
out these notes from the treasury from
time to time, whenever the character of
the currency coming in indicated that
the point of danger was about to be
reached, and it win be necessary to pur-
sue the same policy hereafter as long as
the legal tender notes are In existence.
Not tyff = at udfupr all the qfforfg If tho