Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1895-12-21

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the proportions of a panic, and II wa q owl
ueht 10 all who were familiar with tho
SITUATION that unless effectual stress was
p1o'hptly taken to check the growing dis
Nust the government would be comnellad
"i'iiln d Few days to suspend gold paw
heh's and drop to deprecated silver and
paper standard. More than s4S. 600 600 of
Inc amount withdrawn during the brief
period mentioned was not demanded for
export, but was taken out by people who
had become alarmed on account of the
cTltlcal condition of the treasury in its
relatlons to the currency of the country
Inc purchase of 100000 ounces of gold
IolloWed, 1t being in the contract that
not less than one-half of the gold was to
pe procured abroad, but after a large part
or the gold had been furnished from
abroad, the secretary, in order to prevent
disturbance in the rate Of foreign ex
change at critical period and avoid
condition which would force gold exports
and consequent Withdrawals from the
treasury, acquiesced in a departure from
the literal terms of the contract, that one
nail or the coin should be procured abroad
ana accepted deposits of gold then held
! IN TINS country to complete the delivery
commence in our securities was at once
restored and the encouraging indication
OF increasing prosperity still continue, and
it Is reasonably certain that if our prog
ress is not checked by a repetition of
large demands upon our resources or by
failure to meet the just expectations of
the people in respect to the reformation
of our fiscal system, we are entering upon
an era of material growth and develop
ment not surpassed in our history.
RETIREMENT OF NOTES.
The safety Of the existing situation is,
however, constantly menaced and our fur
Their progress toward the complete res
| toration of confidence and prosperity is
seriously impeded by the defects in our
currency laws and the doubt and uncer-
| tainty still prevailing in the public mind
and especially abroad concerning the fu-
ture monetary policy Of the government
Our past experience with the United
| States notes and the treasury notes has
| clearly shown that the policy Of attempt
ing to retain these obligations Of the gov
| eminent permanently as a part Of the cir
| culating medium, and to redeem them in
coin on presentation and reissue them
| after redemption must be abandoned, or
that such means must at once be proVid-
ed as will have a tendency to facilitate
| the efforts Of the secretary to accumulate
| and maintain coin reserve sufficient IN
amount to keep the public constantly
! assured of the stability OF our entire vol
! ume Of currency and of our ability at all
| times to preserve equality in the ex-
! changeable value of it's various parts.
The latter alternative, which, in my opin-
| ion, If adopted, would not afford the re-
lief demanded by the existing situation
| necessarily involves such large increases
| of the interest-bearing public debt from
time to time. and would impose perma-
| nently upon the government such erron-
/ eous and inappropriate duties in relation
| to the paper currency of the country that
! It ought not to be favorably entertained
| except as last resort in the struggle for
tho maintenance Of public faith and the
reservation of private contracts.
The issue of bonds to procure coin for
| the reserve. which is the only etrectual
method now available under the law, WILL
! unIess conditions which have already been
! developed by the present policy are RAD
| ically changed, ultima tely result IN the
! creation of a public debt mucn larger
! than would be required to retire and can
eel the notes, and the annual interest
charge would be much greater than II
would be necessary to incur on new
issue Of bonds adapted to the present
circumstances Of the government anu IIle
Well-knoWn preferences OF investors. -
however, an attempt is to be mace 10
keep the United States notes ana treasury
notes permanently in circulation by rels-
sues after redemption and the govern
ment is to be permanently charged with
the duty of sustaining the value OF cur
rency, paper and coin alike, the conclusion
can not be avoided that the policy OF IS
erine bonds for the accomplishment OF
these purposes must also become perma-
nent, and such additional powers must
be conferred upon the secretary as WIN
- t1a hin, ~ execute the laws relating to
th.sa subjects with the least possible d1s-
turbance of the business affairs.
am thoroughly convinced this pohcy
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 releVeo
IN a