The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-12-04

but there might not be the necessity
for such an action to the currency by
new issues of bank circulation as at
first glance is indicated. II we should
be relieved from maintaining a gold
reserve under the conditions that con-
stitute II the barometer of our solv-
ency. and II our treasury should no
longer by the foolish purveyor of gold
nations abroad. or for speculation and
boarding by our citizens at home, /
should expect to see gold resume its
natural and normal functions in the
business affairs of the country and
cease to be an object attracting the
timid among our people and exciting
their sensitive imaginations. / do not
overlook the fact that the cancellation
of the treasury notes issued under the
silver purchasing act of 1890 would
leave the treasury in the actual owner
ship OF sufficient silver, including seig-
noriage. to coin nearly x7S,000,000 in
standard dollars. 1t is worthy of con-
sideration whether this might not.
from time to time, be converted into
dollars or fractional coin and slowly
put into circulation, as in the judgment
of the secretary of the treasury the
necessities of the country should re-
quire. Whatever Is attempted should
be entered upon fully appreciating the
fact that by careless easy descent we
have reached a dangerous depth and
that our ascent will not be accom-
plished without laborious toll and
struggle. We shall be wise IL we real
lie that we are financially III and that
our restoration to health may require
heroic treatment and unpleasant RENE
dies.
ONE OF THE TROUBLES.
In the present stage of our difficulty,
1t is not easy to understand how the
amount of our revenue receipts directly
affects II. 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 sound financial condition.
We are considering the governments
holding of gold as related to the
soundness of our money and as affect
ing our national credit and monetary
strength. If our gold reserve had
never been impaired or IL no bonds
had ever been issued to replenish 1t, II
there had been no fear and timidity
concerning our ability to continue gold
payment IL any part of our revenues
were not paid in gold, and If we could
look to our gold receipts as a means OF
maintaining a safe reserve, the amount
of our revenues would be an inf1uen-
| tial factor in the problem. But, un-
| fortunately. all the circumstances that
might lend weight to this considera-
ton are entirely lacking in our present
| predicament. No gold is received by
the government in payment of revenue
| charges nor would there be If the reve-
! nues were increased. The receipts OF
| the treasury, when not in silver certifi-
: Gates, consist of United States notes
| and treasury notes issued for silver
! purchases. These forms of money are
| only useful to the government In pay
| ing its current ordinary expenses, and
| In n0SS4SSlOn
| does not in the least contribute toward
| giving us the kind Of safe financial
| standing or condition which is bulit
| ON gold alone. If Ii is said that these
notes held by the government can be
used to obtain gold for our reserve, the
answer is easy. The people draw gold
from the treasury on demand upon
| limited States notes and treasury notes,
but the proposition that the treasury
! can on demand draw gold from the
! people upon them would be regarded In
/ these DAVIS with wonder and amuse-
ment. and even IL this could be done
there is nothing to prevent those thus
parting with their gold from regainine
it the next day of the next hour by the
! presentation of notes tney received III
exchange for it.
WHAT MIGHT HAPPEN.
The secretary of the treasury Nigh
use such notes taken from a surplu
| revenue to buy gold in the market;
| course, he could not do this withou
| having a premium. Private nolders
gold, unlike this government, nave n
parity 10 maintain, would not De re
strained from making the best bargain
nossible when they furnished gold t
the treasury, but the moment the sec
rotary of the treasury bought gold o.
any terms above par he would estaplsl
a general and universal premium up
on 1t, thus breaking down the part,
between gold and silver which the gov
eminent is pledged to maintain and op
ening the way to new and serious com
pllcations. In the meantime the pre-
MUM would not remain stationary, an
the absurd spectacle might be presente
of a dealer selling gold to the govern
ment, and with United states notes .
treasury notes in his hand, immedi
ately clamoring for it's return and "a re
sale at higher premium 1t may Q
claimed that a large revenue and re
dundant receipt might favorably aHec
the situati under discussion by al
fording an opportunity or retalnin
these dn the treasury when received
and thus preventing their presentatio
for gold. Such retention to be user
| ought to he at least measurably perma
nent: and this Is precisely what Is prt
hibited. so far as United states note
are concerned.
HOW THE LAW OF 1873 WORKS.
Nv the law of 1873 forbidding the
. future retirement. that statute In
, many words provides that these mote
when received into the treasury ana o.
longing to the United States snail [
maid out again and kept In circulation
: II will, moreover. be readily seen fh&
the government could not refuse to pa
ont limited suites notes and treasur
, notes in current transactions, whe
demanded and insisted on, paying 81
Yer alone and still maintain the parii
I between that metal and the currenc
J representing gold. Besides the acc
r notation an the treasury of currenc
: Of any kind exacted from the Peep
] tbrough taxation Is justly regarded
E an evil and 1t cannot proceed far Wit
; ont yirorous protest against an untus
Sfiable retention of money from the bu
mess of the country and a denunci
ton of a scheme of taxation wink
Y nroves itself to be unjust, when II tax
: from the earnings and income OF q
4 citizens money 50 much in excess of u
: needs of the government support TN
: large sums can be gathered and kept