Delaware gazette and state journal., 1895-12-05

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figures in the following paragraph Of
the message are conclusive on this
point:
At no time when bonds have been
Issued has there been any consideration
OF the question of paying the expenses
OF the government with their proceeds.
Ihere was no necessity to consider
that question. At the time OF each
bond issue we had safe surplus in
the. treasury for ordinary operations,
exclusive of the gold in our reserve.
La February, 1894, when the first issue
OF bonds was made, such surplus
amounted to over Sl9, 900, 600; in No
vember, when the second issue was
made, 1T amounted to more than S42, :
uU0, QOO, and in February, 1895, when
bonds for the third time were issued,
euch surplus amounted to more than
slOO, uOO, 600. 1t now ar,ounts TO
S3o, OI3, 420. Besides all this. the Secre.
tary OF the Treasury had no authority
whatever to issue bnods to increase the
ordinary revenues or pay current ex-
penses
With unerring wisdom the messapy
points Congress and the country to the
real trouble, and reveals in some detail
Its alarming portent The trouble is
IN the treasury notes which the govern.
ment is forced to redeem without re-
demption and to pay without acquit-
tance.o The treasury has outstanding
notes amounting to nearly $500, 900, 900
which must be redeemed upon presen.
tation, and yet when presented and
paid the law says that they shall not
be retired, cancelled or destroyed, but
they shall be ressued and paid out
again and kept in circulation. -
The result of this way of treating
our currency is stated thus by the
President;
Nearly 1927, 000 coo of the gold Thus
Withdrawn has been paid out on these
United States notes, and yet every one
OF The S346, 600, 600 is still uncalled and
ready to do service in future gold de-
pletions. More than SIC, 600, GOO in gold
has, since their creation in 1890. been
paid out from the treasury upon tho
notes given on the purchase of silver
Dy the government; and yet the whole,
amounting to Sl55, GOO, 600, excepting
q little more than GIG, 600, 600, which
nave been retired by exchanges for sill.
YER at the request of commerce., re-
mains outstanding and prepared to
ION their Older and more experienced
allies IN future raids upon the trea.
sury's gold reserve. In other words.
the government has paid in gold moro
thap nine-tenths of it's United States
notes, and still owes then all. IL has
PAID IN gold about one-half of its notes
given for silver purchases without ex
tingulshlng by such payment ono dol.
lar of these notes.
In short the treasury is in effect n
great bank Of issue without n hanks
facilities for protecting its reserve. Its
gold is the easy prey of every man who
wishes to hoard or to export the
precious metal. Ours is the only great
civilized government which makes its
treasury banking institution. Too
great Or too hearty approval of tho
tresident's mastery and statesmanlike
presentation of this vital question
can not be accorded 10 him. He un-
dfrstands the radical defect in our cur.
rency system and he has made it SO
plain that any intelligent business man
can readily understand IT,
a wise remedy is indicated for Con
gressional consideration. 1t is 10 retire
the outstanding redeemabe notes of
the government by issuing long term
non'intereFt bearing bonds Then en-
courage, by reducing the fax on bank
circulation and otherwise, the national
banks to put out bank notes which
will take the place Of the retired gov
eminent notes. In short, turn over the
banking business to the banks where
il properly belongs and where it can be
safely attended to.
II Congress will act on the Presi.
dont's suggestions and put this coun.
try on perfectly safe and sound
monetary basis, we shall enter upon a
career Of business prosperity which
will transfer the financial centre of the
world from London to New York. The
dollar, liko the pound sterling, will at
all tines and in all places mean the
same thing and will accordingly have
the confidence of business men and
tinanciers the world over. Our great
resources, industry and accommodating
wealth will do the rest.
In connection with the currency sys
TEN, the message takes up the free sill
yer heresy and exposes its fallacies in
the most complete and satisfactory
manner 1t admits the sincerity az
many Of our fellow -countrymen who
insist that the cure of the Ills now
threatening may he found in the sinnle
and simple remedy Of the free coinage
Of silver " In npirit 1t brotherly
trankness the President has reasoned
with the free silver advocates, and his
reasoning is both convincing and per-
suasve.
What possible answer can be made to
such arguments as the following which
are extracted from this part OF the
message
No government, no human contriy-
aace or act Of legislation, has ever been
a'le V mold the two metals together
on lfee c9lnase at d ratio apprecably
9lHerent from that which is estab-
lisaed ~ The markets of the world.
,,... Naf = there the least posi-
pli'lS llat our country, which has less
in the world, coad by ita action alnna
raise not Only cur own- hut Hi +
silver to It's osy fatio with gold. OH.
attempt TO accomplish tbis bv the fre6
coinage of Eifver 4; 1;4rt (