Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1895-12-12


health may require heroic treatment.
1nasnuch as the withdrawal of our gold has
resulted largely from fright there is nothing
apparent that will prevent its continuance or
REQUIRE nee with its natural consequences ex-
cept such change in our financial methods as
will reassure tho frightened and make the de-
sire for gold less intense. It is not clear how
an increase in revenue, unless it be in gold and
satisfactory to those whose only anxiety is to
gain gold from the governments store. It can
not, therefore. be safe to rely upon increased
revenues as cure for our present
troubles. 1t is possible tn at the suggestion of
increased revenue as remedy for the difficult
ties we are considering may have originated in
an intimation or distinct alleeati on tn a + tha
bonds which have been issued ostensibly to
replenlsh our gold reserve were really issued
TO supply insufficient revenue. Nothing can be
further from the truth. Bonds were issued to
obtain gold for the maintenance of our natioual
, credit.
Free Silver.
While have endeavored to make plain
statement of the disordered condition of our
currency and the present dangers menacing our
prosperity and to suggest a way which
leafs to safer financial system
1 have constantly had in mind the fact that
many of my countrymen, whose sincerity do
not doubt, insist that the cure for the ills now
threatening us may be found in the single and
simple remedy of the free coinage of silver.
They contend that our minis shall be at once
thrown open to the free and unlimited and
independent coinage of both gold and silver
dollars of full legal tender quality, regardless
OF the action of any other COVE rnment, and in
full view OF the fact that the ratio between
the metals which they suggest calls for one
hundred cents worth of gold in the gold dollar
at the present standard and only fifty cents in
intrinsic worth of silver the silver dollar.
In the present sta ze of our difficulty it is not
easy to understand how thu amount of our rev.
enue receipts affects it. The important Ques-
ton is not the quantity of money received in
revenue payments, but the kind of money we
maintain and our ability to con tinue in sound
financial condition. We are considering the
government holding of gold as related to the
soundness of our money and as affecting our ma
tional credit and monetary strength. If our gold
reserve had never been impaired; If no bonds
had ever been issued to replenish if there had
been no fear and timidity concerning our abil-
ity to continue gold payment if any part
OF our revenues were paid in gold,
and if we could look to our gold receipts as a
means of maintaining a safe reserve the
amount of our revenues would be influential
factor in the problem. But unfortunately all
the circumstanc es that might lend weight to
this consideration entirely lacking. In our
present predicament no gold is received by the
government In payment of revenue charges
nor would there be if the revenues were in
creased The receipts of the treasury when not
In silver Ger tihcates, consist of United
States notes and treasury notes, issued
for silver purchases. These forms of money are
only useful to the government in paying its
current ordinary expenses aud its quantity
In government possession does not in the least
contribute iowa I'd giving that kind of safe
on god alone. 1t is said that these
notes II held by the government can be used to
obtain gold for our reserve. The answer is
easy. The people draw gold from the treas ury
on demand upon United States notes and treas
ury notes, but the proposition that the treasury
can On demand draw gold from the people upon
them would be regarded in these days with
wonder and amazement And even if this
could be done there Is nothing to prevent
those thus parting with the If gold from regain
ing 1T the next day the next hour by the
preSentatio n of the notes they received in Ak
change for it.
The secretary of the treasury might use such
notes taken from d surplus revenue to buy
gold IN the market. Of course. he could not do
this without paying premium. Private hold
erS of gold, unlike the government having no
parity to maintain. would not be restrained
from making the best bargain possible when
they furnished gold to the treasury; but the
moment the Secretary of the treasury bought
gold on any terms above par he would estab-
HSh general and universal premium upon it.
thus breaking down the parity between gold
and silver which the government is plbged to
maintain, and opening the way to new and
serious complications.
In the meantime the premium would not re-
main stationary and the absurd spectacle might
be presented of a dealer selling gold to the
Government and with United States notes or
treasury notes in his hands Immediately clam
orlng for its return and ale at higher
premium. 1t may be elaine that large rev.
enue and reduced re ceipts might favorably af-
feet the situation under discussion by affordng
an opportunity affecting these notes in the
treasury when received, and thus preventing
their presentation for gold. Such retention to
be useful ought to be at least measurably per-
manent, and this is precisely what is prohib-
tied so far United States notes are con.
cerned b. law of 1S7S forbidding their res
tirement. That the statute in O many words
provides that these notes when received into
the treasury and belonging to the United States
shall be Paid out again and kept in circula-
ton. " 1t will moreover be readily seen that
the government could not refuse to pay out
United States notes and treasury notes in cur
rent transactions when demanded, and insist
on paying out silver alone and still maintain
the parity between that metal and the cur
Tency representing gold. Besides the accumu
Jation in the treasury of currency of any kind
exacted from the people through taxation is
Justly regarded as an evil and it cannot pro-
coed far without vigorous protest against an
unjustihable retention of money.
We're there infinitely stronger reasons than
can be adduced for hoping that such acti on
would secure for ~;vrNAtallic currency NOV
'=-S. na1aruous proposed might well
stagger those who believe that stability is an
imperative condition of sound money No gov
lation has ever been abls to hold the two metals
together in free coinage at ratio appreciably
different from that which IS established in the
markets of the world.
In the light of these experiences, which ac-
cord with the experiences of other nations,
there is certainly no secure ground for the be-
lief that an act of Congress could bridge
an equality of 90 per cent between gold and sill
yer at our present ratio, nor is there the least
possibility that country. which has less
than one seventh. OF the silver money in the
world, could by its action raise not only our