The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1895-02-02

F, ~ctcasing as 20 our ~nnancia! ability does not
rest upon a calculation Of our revenue. The
time has passed when the eyes Of investors
abroad and our people ut home were fixed
upon tue revenues of the government.
Changed conditions have attracted their at
tention 10 the gold Of the government.
There need be no fear that we cannot pay
our current expenses, with such money as
we have. There IL now in the treasury a
comfortable surplus Of more than SOB Co.,
900. hut II Is not In gold. and therefore
does not meet our difficulty. l cannot see
that difference Of opinion concerning the
extent to which silver ought to bescoined or
used In our currency should interfere with
the counsels OF those whose duty II is to rec
Ufy evils now apparent in our financial situa-
ton. They have to consider the question OF
national credit. and the consequences that
will follow Its collapse. Whatever ideas
may be insisted on as to silver or bimctal-
lisIn. a proper solution OF the question now
pressing upon us only requires q recogni-
ton of gold rs we'll as silver and a cOncrs-
sion Of it's Importance. rightfully or wrong
fully acquired, as a basis OF national credit
a necessity in the honorable discharge OF
our obligations. pay able in gold and Il badge
of solvency. ] 10 not understand that the
real friends Of silver desire a condition that
might follow In action or neglect to appre-
ciatc the meaning Of the present exlgency
ii 1t should result in the entire Punishment
of gold from our financial and currency ar
ranEelnents. Besides the treasury notes,
which certainly should be paid in gold,
amounting TO nearly $500, 900, 600, there will
fall due in 1904 500, 600. 600 of bonds issued
during he last year, for which we have
received gold, and in 1897 nearly $60.0OO,-
GOO OF 4 per cent bonds issued In 1877.
Shall the payment Of these obligations In
gold be repudiated? II they are to he paid
IN SIJrh q manner "a tho nrpEprVHtiOl OF
our national honor and national solvency
demands, We should not destroy or even
imrcril our ability to supply ourselves with
gold for that purpose. While l am not un-
friendly to silver. and while / desire to see
it recognized 10 such an extent as is con-
sistcnt with financial safety and the pres
e~rvation Of national honor and credit. I
am not willing to see gold entirely banished
from our currency and finances. To avert
sud, a consequence, | believe thorough and
radical remedial legislation should be
promptly passed. / therefore beg congress
/ to give the subject immediate attention.
The Presidents RecOm re ndnt1Ons
In my opinion she secretary OF the treas
ury should be authorized to issue bonds OF
the government for the purpose OF procnr-
ing and maintaining a sufficient gold re-
serve and a redemption and cancellation OF
| the United States legal tender notes and
the treasury notes issued for the purchase
| vi SLlfVT uNle II INV VI July ~ 'oO
We should be relieved from the humiliating
! process Of issuing bonds to procure gold to
be Immediately and repeatedly drawn out
on these obligations for. purposes not re-
lated to the benefit of our government or
people. The principal and interest Of these
bonds should be payable on their face in
gold, because they should be sold only for
gold or its representative, and because there
would now probably be difficulty in favor
ably disposing Of bonds not containing this
stipulation. 1 suggest that the bonds be
issued in denominations of $40 and $50. and
their multiples, and that they bear inter-
est at a rate not exceeding 3 per cent per
annum. l do not see why they should not
be payable fifty years from their dates. We,
of the present generation. have large
amounts to pay ii we meet our Obligations,
and long bonds are most salablc. The sec
rotary of the treasury might we'll be per-
ml:ted at his discretion to receive on the
sale Of bonds the legal tender and treas
ury notes to be retired, and, OF course.
when they are thus retired or redeemed in
gold, they should be cancelled.
These bonds under existing laws could be
deposited by national banks as security
for the circulation. and such banks should
be allowed to issue circulation up to the
face value OF these or any other onds SO
deposited. except bonds outstanding hear
ing only . per cent interest, and which sell
in the market at less than par. National
banks should not be allowed to take out
circulating notes Of q less denomination
than $40. and when such as are now out.
standing reach the treasury, except for re-
demption and retirement. they should be
cancelled and notes of the denomination OF
$40 and upwards issued in their stead. Sill
yer certificates of the denomination of $40
End upwards should be replaced by certif-
Gates Of denominations under $40. As a con-
slant means for the maintenance Of q
reasonable supply Of gold in the treasury,
our duties on imports
Should He Paid in Gold,
allowing all other dies to the government
to be paid in other form Of money. I be-
| lieve all the provisions I have suggested
should be embodied in our laws II we are
to enjoy a complete reinstatement Of a
sound financial condition. They need not
interfere with any currency scheme provid-
ing for the increase of the circulating me-
dium through the agency Of the national
or state banks since they can easily be
adjusted to such a scheme. The objection
has been made to the issuance Of interest
bearing obligations for the purpose of re-
! firing the non-interest bearing legal tender
notes. In point of fact, however, these
interest, and 1t is still accumulating. The
aggregate interest on the original issue Of
bonds, the proceeds Of which in gold con-
stituted the reserve for the payment Of
these notes, amounted to $40, 326, $50 on
Jan. /, 1896, and the annual charge for in
terest on these bonds and those issued for
the samespurpose during the last year will
be 50, 145,O 900. dating from Jan. 1, 1895.
While the cancellation of these notes
would not relieve us from the obligations
already incurred on their account, these
figures are given by way Of suggesting that
their existence has not been free from in
.terest charges. and that the longer they are
outstanding, judging from the experience Of
the last year, the more expensive they will
become.
In conclusion, I desire to frankly confess
my reluctance to issuing more bonds in
present circumstances. and with no better
results than. have lately followed that
course. I cannot, however, refrain from
adding to an assurance Of M anxiety to
cooperate with the present congress in any
reasonable measure of relief, an expression
Of my determination to cave nothing I'M
done which furnishes n hope for improving
the situation or checking a suspicion Of
our dislnclination or disability to meet with
the ~strictest honor every national obligation.
Grover Cleveland.
Executive Mansion, Jan. %, 1895.
INDIAN INSTITUTES.