St. Paul daily globe., 1895-12-17
THE DEFECTS.

l
country, but in every other having
commercial relations with us.
THE DEFECTS.
Confidence in our securities" he
| continues, was at once restored, and
these encouraging indications of in
creasing prosperity still continue,
and it is reasonably certain that II
our progress 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 reforma-
| ton of our fiscal system, we are enter
| ing upon an era of material growth
| and development not surpassed In
|. our history. The safety of the eX-
! listing situation is, however, con-
stantly menaced, and our further
| progress toward a complete restora-
| ton of confidence and prosperity is
seriously impeded, by the defects in
our currency laws, and the doubt and
uncertainty still prevailing in the
public minds, and especially
abroad concerning the future
monetary policy of the gov
ernment Until these defects in our
laws are remedied and these doubts
are removed. there can be no salts
factory assurance of immunity from
periodical disturbances growing out
of the obligations which the gov
ernment has been compelled to as
sumo in relation to the currency.
Our past experience with the United
States notes and treasury notes has
clearly shown that the policy of at
tempting to retain these obligations
of the government as part OF our
circulating medium, and to redeem
them in coin on presentation and re-
issue them after redemption, must
be abandoned, or that such means
must be at once provided as will
have a tendency to facilitate the eff
forts of the secretary to Accumulate
and maintain a coin reserve Suftl-
cient in amount to keep the public
constantly assured of the stability
of our entire volume of currency, and
| of our ability at all times to pre-
serve equality in the eXchangeable
value of it's various parts. The lat
| ter alternative, which, in my opin-
| ion, if adopted, would not afford the
| relief demanded by the existing situ-
alton, necessarily involves such large
| increases of the interest-bearlng
debt, and would impose upon the
government permanently such
onerous and inappropriate duties in
relation to the paper currency OF the
country that it ought not to be IA
vorably entertained, except as last
resort in the struggle for the main
tenance of the public faith and the
preservation of the inviolability of
| private contracts.
WHAT IS NEEDED.
THE issue of bonds" he says. "to
| procure coin for the reserve, which is
| the only effectual method now avail
able under the law, will. unless condi-
| tions which have already been devel-
| oped by the present policy are radical
| ly changed, ultimately result in the
| creation of a public debt much larger
| than would be required to retire and
/ cdHCtl dlt TIC llolco, ciiu liiC eSiiAi lieSA
| interest charge would be much greater
| than it would be necessary to incur on
| new issue of bonds adapted to the
| present circumstances of the govern
ment and the well-known preference
| of investors. If, however, an attempt
| is to be made to keep the United States
| and treasury notes permanently in
| circulation by reissues after redemp-
~, ie- tn hn
manently charged with the duty of
| sustaining the value of all our cur
| rency, paper and coin alike, the con-
| clusion cannot be avoided that the pol
| icy of issuing bonds for the accom-
| plishments of these purposes must al
so become permanent, and such addi-
tional powers must be conferred on
the secretary as will enable him to ex-
| ecute the laws relating to these sub
jects with the least possible disturb
ance of the business affairs of the
people and the least possible charge
upon the treasury. I am thoroughly
| convinced that this policy ought not
| to be continued, but that the United
| States notes and treasury notes should
| be retired from circulation at the ear
| liest practicable day, and that the gov
| ernment should be wholly relieved
from the responsibility of providing a
credit currency for the people. 1t
| would be difficult, if not impossible, to
| devise more inconvenient, expensive
or dangerous system than the one
| now in operation under the laws pro-
viding for the issue, redemption and
reissue of legal tender notes by the
| government.
| ALWAYS A BURDEN.
''There has never been a time since
the close of the war;" the secretary
says, when the gradual retirement
and cancellation of the United States
notes would not have been a benefit
to the country. nor has there ever
been a time when the issue of addi-
tional notes of the same character
would not have been Injurious to the
country. If our legal tender notes
were retired, there is abundant reason
to believe that a very large amount
of gold, which has been excluded from
the country by the excessive use of
silver and paper in our circulate
| would promptly return to take its
place in our currency and constitute
permanent part of our medium of
exchange. A country having such eX-
tensive trade relations with other ma
tions as we now enjoy cannot be de-
prived Of it's proper share of the
worlds stock of money, and if it
adopts and adheres to a sound and
staple currency system at home, 1t
will get the best money the world
has, because no other kind is ever
used in interna tional transaction. AS
long as the government leaves other
people reasonably free to trade abroad,
and does not make any kind of paper
legal tender in the payment of debts.
it cannot materially or injuriously
contract the currency by the with
drawal of it's own notes. The retire
ment and cancellation of the legal
tender notes would not necessarily
produce any contraction of the circu-
lation, and if such result should fol-
low, and continue for any considerable
period, it would be demonstration
of the fact that the volume of cur
| renew nrnViOuS1U nvictinor