Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-01-28

| incre Ase of revenue will cure our troubles.
The apprehension now existing and con-
stantly increasing as to our financial abil-
| t.y does not rest upon a calculation of
| our revenue The time has passed when
| the eyes of investors abroad and our peo-
| pie at home were fixed upon the revenues
have attracted their attention to the gold
of the government. There need be no
fear that We cannot pay our current ex-
penses with such money as we have. There
is now in the treasury a comfortable sur
plus Of more than sixty-three millions Of
dollars, but it is not in gold, and there
fore does not meet our difficulty.
A Word to the Silver Men.
I cannot see that differences of opinion
concerning the extent to which silver ought
to be coined or used in our currency should
| interfere with the counsels of those whose
duty it is to rectify evils now apparent in
our financial situation. They have to con-
slider the question Of national credit and
the consequences that will follow from its
collapse. Whatever ideas may be insisted
| upon as to silver or bimetallism, proper
solution of the question now pressing upon
us only requires recognition of gold, as
we'll as silver, and concession of it's i'm
portance, ,rightfully or wrongfully acquired,
as q basis of rational credit, d necessity
in the honorable discharge Of our obliga
tions payable in gold and Il badge Of SOL
vency.
1 do not understand that the real friends
of silver desire condition that might fol-
low inaction or neglect to appreciate the
meaning Of the present eXlgency II it
Should result in the entire Punishment of
geld from our financial and currency ar
rangenents.
Besides the treasury notes which certain
ly should be paid in gold, amounting to
nearly $J0O,OJU,OO0, there will fall due i'll
1904 500, 100000 of bonds, issued during the
last year, for which we have received gold,
and in 1907 nearly $GEO,OoO,OO0 Of four per
cent bonds issued in 1877. Shall the pay
ment of these obligations in gold be repu-
dated? If they are to be paid in such
manner as the preservation of our national
honor and national solvency demands, we
should not destroy or even imperil our
ability to supply ourselves with gold for
that purpose.
While l am not unfriendly to silver and
while l desire to see it recognized to such
an extent is consistent with financial
safety, and the preservation of national
honor and credit, l am not willing to see
gold entirely tanished from our currency
and finances. To avert such consequence
l believe thorough and radical remedial
legislation should be promptly passed. l
therefore beg Congress to give the subject
Immediate attention.
What should BE Done.
In my opinion the Secretary of the Treas
ury should be authorized to issue bonds of
the government for the purpose of procur-
ing and maintaining sufficient gold re-
serve, and the redemption and cancellation
OF the United States legal tender notes, and
the treasury notes issued for the purchase
Of silver, under the law Of July IA, lS9o
We should be relieved from the humiiat-
ing process of issuing bonds to procure
gold, to be immediately and repeatedly
drawn out on these Obligations for pur-
poses not related to the benefit of our gov
ernment or our 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 representatives
and because there would now probably be
diflculty in favorably dispoSing of bonds
not containing this stipulation. l suggest
that the bonds be issued in denominations
of twenty and fifty dollars and their null
tipes, and that they bear interest at n
rate not exceeding per cent per annum
do not see why they should not be pay
able fifty years from their date We of the
present generation have large amounts to
pay II we meet our obligations, and long
bonds are more salable. The Secretary OF
the Treasury might well be permitted at
his discretion to receive on the sale Of
bonds the legal tender and treasury notes
to be retired and of course, when they
are thus retired or redeemd in gold they
should be Cancelled.
These bonds, under existing laws, could
be deposited by national banks as security
for circulation, and such banks should be
allowed to issue circulation up to the face
value of these or any other bonds so 1e-
only per cent interest and which sell in
the market at less than par.
National banks should not be allowed to
take circulating notes of less de-
nomination t!an so, and when such as are
now outstanding reach the treasury, except
for redemption and retirement, they should
be Cancelled and notes of the denomination
of $40 and upward issued in their stead
Silver certificates of the denominations of
$40 and upward should be replaced by GER
tificates Of denominations under $40.
Duties to Hc Paid in Gold.
AS constant means for the maintenance
of a reasonable supply Of gold in the treas
ury our duties on imports should be paid
in gold, allowing all other dues to the gov
ernment to be paid in any other form of
money.
1 believe all the provisions have sug-
gested should be embodied in our laws if
we are to enjoy a complete reinstatement
of a sound financial condition. They need
not interfere with any currency scheme
providing for the increase of the circulat-
ing medium through the agency of nation
al or state banks since they can easily be
adjusted to such a scheme. Objection has
been made to the issuance Of interest-bear-
ing obligations for the purpose Of retiring
the Notwithstanding legal tender notes.
In point of fact, how ever, these notes
have burdened us with large load Of in
terest, and it is still accommodating. The
aggregate interest onS the original issue
of bonds, the proceeds of which in gold
constituted the reserve for the payment of
these notes. amounted to $70,32G,250 on
January l, 1895, and the annual charge for
interest on these bonds and those issued
for the same purpose auring the last year
1895.
While the cancellation of these notes
would not relieve us from the obligation
already incurred on their account. these
figures are given by fway Of suggestion
that their existence has not been free from
interest charges and that the longer they
are outstanding, judging from the expe-
rierce of the last'year. the more expensive
they will become.
In conclusion, desire to frankly confess
my reluctance to issuing more bonds in
present circumstances and with no better
results than have lately followed that
course. l cannot, however, refrain from
adding to an ASSURANCE of my anxiety to
cooperate with the present Congress in
any reasonable neasrife Of relief, an ex-
of my discrimination to leave
nothing undone which furnishes a hope for
the situation or checking a
suspicion of our disinchnation or disability
to meet with the strictest honor every ma
''O'>@ GROVER CLEVELAND.
Executive Mansion,