Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1895-12-07

PANSiN'S WI thS DSiidtC-
and Speaker Crisp in the
chair of the Speaker Of the
House of Representatives.
The latter body, which is now
largely Republican re-organi-
zed by electing Representa-
tive Thomas Hackett Reed Of
Maine, Speaker, to succeed
Hon. Charles Crisp. Mr..
Reed is a candidate for the
Presidency and his remarks
were not characteristic OF the
man, being guarded and rath.
er tame. He minated that
Congress would do nothing,
The Presidents message was
received on Tuesday and was
a great disappointment to the
Republicans as it did not fur
nish them with any ammuni
ticn with which to make wal
on the Administration.
The leading daily papers o.
the country comment very
favorably on the message.
The Philadelphia Record says
''As was generally antici-
pated, the President earnestly
recommends the permanent
retirement of the greenback
debt. and this not merely in
order to arrest The drain OF
gold from the country, but to
obviate the necessity for the
maintenance of an enormous
Treasury metallic reserve. In
reviewing the history of the
Legislation from the beginning
TO the stoppage OF the redemp.
ton of the greenback currency
in 1870 he describes with much
force the mischiefs arising
from the maintenance OF this
policy. The Government is
put in the strangely anomalous
position. for which there is no
example in the financial legis-
lation Of any other country, OF
owing the holders of its notes
debts payable in gold which
can neither be retired by re-
ceiving such notes in discharge
of obligations due the Govern
ment nor Cancelled by actual
payment in gold. As the
President tersely puts the
case. the Government sis
forced to redeem without re-
demption. and to pay without
acqulttance.
In the unnatural infusion OF
silver into the currency he
finds one of the potent causes
of shrlnkage of the Treasury
reserve of gold. Among the
other causes were the opera
ton of the Mckinley tariff in
gripping the exchange OF
commodities and requiring
gold payments for balances OF
imports, and the increasing
agitation for free silver coin
age, which has created appre-
tensions OF the willingness or
ability OF the Government to
continue gold payments, the
boarding Of gold at home, the
stoppage OF investments Of
foreign capital, the return OF
American securities sold "a
broad, and the high rate Of
exchange, inducing shipments
Of gold as a matter of specula-
ton.
1t now remains to remove
the chief danger to the public
finances in the floating green
back debt. To this end the
President again recommends
the exchange OF the green
backs for United States bonds,
Of small as well as OF large de-
nominations. bearing a low
rate of interest and running a
long term. To meet the OBJ
lection that this would cause a
contraction of the currency
the President also recon-.
mends that the national banks
be allowed to issue currency
equal to the par value OF the
bonds deposited TO secure cir
culation. This currency has
the great advantage of elias
ticity-a quality that is utterly
wanting in the Government
paper issues.
In the policy of maintaining
the greenback currency and
increasing the revenues in
order to prevent the drain Of
gold the President has not the
least faith. He says and he
proves it, too--that nothing
can be further from the truth
than the frequent assertion
that the bonds issued ostensi-
bly, to replenish the gold re.
serve were really issued to
meet insufficient revenue. The
bonds were issued only to OBJ
tain gold to maintain the ma
tional credit. AT the time oil
each bond issue there was "a
cafe curDl,,c N the Traact,rV