The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1895-12-17

which the government has been compelled
TO assume In relation To the currency.
our past experience with the United
states notes and the treasury notes has
clearly shown that tho policy OF attempt
ing To retain these obligations Of the gov
ernment permanently MS part OF our cir
culating medium and 10 redeem them in
coin on presentation and reissue them
after redemption. must he abandoned or
that such means must he at once pro-
Nided as viii have u tendency to facilitate
the efforts OF the secretary 10 accumulate
nhd MAINTAIN coin reserve sufficient In
amount TO keep the public constantly as
surrd OF the stability oi our entire volume
OF currency ana OF Our ability Mt all times
TO preserve equality tn the cxchangeahlc
value OF It's various parts The latter nj.
formative. which. 10 my opinion, If adopted
would not AFFORD the relief by the exist
ing situation necessarily involves such
large Increases OF the interest bearing
nuhlic debt from time to time and would
Impose permanently upon the government
such oneroua and Inappropriate duties in
relation 10 the paper currency of the
country That 1t ought not to he favor
ably entertained except ma a last rcsor,
~ the struggle for the maintenance OF
thc public faith mud the preservation OF
"rhe issue Of bonds" he says, TO pro-
euro coin for the reserve. which II the
only .effectual method now available un-
der the law WILL unless conditions which
nave ALREADY been developed by the pres
cnt policy are radically changed, ulli-
matoly result IN the creation OF a pubic
10 retire and cancel all the notes. and
the annual Interest charge will be much
greater than IL would be necessary TO
incur on "A new class of bonds ndaptcd
To present circumstances OF the govern
ment and tho well known preference OF
investors. II, however, an attempt Ia
made TO keep the United states notes
ana treasury notes permanently I'm cir-
culation by reissues after redemption ana
the government Ia to be permanently
charged with the duty of sustaining the
value ~ all our currency. pappr and coin
alike. the conclusion can not he avoided
that the policy of issuing bonds for the
accomplishment OF these purposes must
also hecom" pCrma mont and such Rddi-
honnl powers must he conferred upou tho
secretary as Will enable hm 10 execute
the laws relating to these subjects with
the least possible disturbance of the husi-
ness affairs of the people ana the least
unssih'e ohnigc upon tho treasury. am
ought not to be continued, hut that the
nitcd States nnd treasury notes should
be retired from circulation at IN" earliest
practicable day and that the government
should be wholly relieved from the re
spons'bility OF providing credit cur
rcncy for the people.
1T would hp difficult II not impossible
TO devise II more inconvenient, expensive
or dangerous system than the ono now IN
operation under the laws providing for
the issue redemption and reissue OF legal
tender notes by the government.
There has never been a time since the
close. OF the war. the secretary says.
collation. OF the United States notes would
not have been beneficial to the country,
nor has there over been a time when the
issue of additional notes OF the same
character would not have been injurious
to the country.
III our legal tender notes were retired
there lie abundant reason to believe that
n very large amount OF gold, which has
been excluded from the country by the
excessive use OF silver and paper In our
circula ton. would promptly return TO take
a permanent part Of our medium Of cN-
change A country having surh extensive
now enjoy can not he deprived of It's
proper share of the worlds stock OF
money and II " adopts and adhorcs 10 a
sound and stable currency system NJ
homo IT VIII Spt the best money the world
has, because no other Kind iR ever used
IN International transactions AS long
az tho government leaves our people ica-
free to trade abroad and does
not make any kind OF paper legal tender
IN the payment OF debts II can not ma
terla,lY or iniur1ously contract the cur
rency ny the Withdrawal of its own notes.
The retirement and cancellation of the
Iognl tender notes would not necessarily
produce any contraction of the circula-
Hon and u such a result should follow
and continue for any considerable period
I would he "a demonstration of the fact
hat the volume OF currency previously
existing was not needed In the business
IF the people for. whenever the volume
s. reduced below the actual requirements
'ither from abroad In exchange for our
products and securities or by the banks
AZ home or both
THE United States notes ard the troas-
my notes Issued In payment for SILVER
ullion together amounting at tlb, be-
Ginning 20 fN2 lG2,WlS have boon used
md are still being used 10 withdraw sold
rom the government whcneyor our own
)oope or the Eovernm ents. or people Of
other couutrl ~ see proper 10 demand II |
'or any purposc. and ii der the laws now
P , n %
10 means of complying with these de- |
liands except by the Issue and sale Of in |
crest hearing bonds under the not Of |
january II, 1875, or by the purchase o:
gold coin bonds or potcs of tho United |
states under section 800 of the revised |
tatutrs. Against these demands the |
rcnsury has no available means of de-
rnse except nj the sacrillce Of the public |
redit aud the immediate depreciation of |
he entire volume of our currency
Long adherence TO f..is., system has |
o IT great extent undermined our Natiop- |
II credit. So far as 1t ~ related to the |
OF a sound currency, and IL |
'ropped up by trall and Temporary sup |
,orts. No surplus OF revenue. however |
arge, could eNtricatc M from our pres !
mt difficulties OF give us assurance al |
afuty In the future, unless II should bc |
cqulrcd to he paid In gold under n sys-
en- which would exempt the Government
which Is Demanded Ia be used IN making |
ne payments and II rs scarcely nsc's-
AIRY to alEEeSf tfht Sl'n u system IL I'M |
CFRlblc as long aP the United 8 alto |
0tes and treasury notc9 arr kept IN |
REGULATION and are fodcemahlc In gold |
" the government itself on presentation.
The opinion seems 20 prevail 10 some cN-
st that the nero poEHesson of a surplus |
Il the treasury would prevent withdraw
rs OF gold and thus render the Issue of
onds for the protection o. the reserve
Iunecos sarv bat this view Of tho subject
r founded. m my Judgment, upon an en-
ire mtsCCnCeptipn of the causes thai
ave produced the Withdrawals. UnleA
nm wholly mistaken they have very
title, ~ any. relation to the amount of
Money held by The government or 10 tho
mount Of money the government nag
he nhiiity 10 raise by taxation OF other
isc. but they relate primarily and al
most exclusively to tho character Of The
money II might be able 10 supply and
eer In circulation.
o the kind Of money to be used and not
~ TO the amount of money on hand that
brought our securities back from abroad
or sale. caused foreign investors to with
lraw their capital and foreign creditors
O collect their debts end compelled our
,wn people to suspend or contract their
BUSINESS operations and thus diminlsh the
Incomes Of employers and greatly reduce
n entirely stop the wages Of labor. Large
have been made during the
asst three years, simply becaus" gold was
wanted and tho desire 10 secure gold
vas due to a growing diatrlsi OF the other
,inds of currency IN circulation ana not
4 all 10 any apprehension that the gov
rnment would not be able 10 discharge
n ITS obligations in some kind Of pay or
old Whom the. rergfutR for CUSTOMS con-