The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-10-09
MIR. CLEVELAND VS.. GREENBACKS

''The American" a national journal
published in the city of Philadelphia
and now in it's twenty third volume, con-
tains an editorial in it's issue of Sept 21st,
under the caption "Mr. Cleveland and
The Greenbacks." There is some
mighty good readin'" in this article
and the contents are worth the perusal
of 'goldite," "silverite" and ''bi-metal
list" We give some extracts therefrom
There is no longer room for doubt
that Mr.. Cleveland will urge upon the
republican congress the cancellation of
the legal tender note authorized by con-
gress in 1862 and 1863, and known as
'Greenbacks,' as well as the Treasury
Notes issued under the Sherman Act Of
1890.
THE effort to discard silver as money
metal, conduct our business on THE
APPRECIATING GOLD STANDARD,
and at the same time keep in circulation
'greenbacks and treasury notes must re-
suit in failure. The attempt to do so has
and the issue of $162, 315 400 in bonds,
and must finally lead to suspension of
gold payments altogether
I'VE cannot possibly base a greater
quantity of credit money upon our mar
row gold basis. than other gold countries
do upon their much larger stocks of gold
There are those who urge the expan-
sion of credit, based on the restricted
gold basis as remedy for low prices, but
such an attempt at expansion would in
evltably lead to an increase of gold ex-
portation; for just as prices rose locally,
imports would increase and exports de-
crease, and an adverse balance of trade
would accumulate only to be paid in gold.
The very fact that our paper cur
rency, based on gold, is extended out of
all proportion to the narrow stock of gold
on which it rests, leads of itself to gold
exports Compared with European gold
using nations our monetary system is
strikingly top heavy. With the silver
certificates, which the President has ar
bltrarily undertaken to redeem in gold
alone, this country now has EIGHT DOL
LARS IN PAPER outstanding and re-
deemable in gold against EACH DOL
On the contrary the Bank of England
has 81. 53 for every dollar of paper out
standing, while the majority of the gold
using countries of Europe have about
TWO DOLLARS IN GOLD for everv
THREE DOLLARS of paper issued. On
the other hand the United States has ONLY
ONE DOLLAR IN GOLD with which to
redeem EIGHT DOLLARS in paper.
Even Russia, with it's enormous issue Of
irredeemable paper money. has so. 46 IN
GOLD with which to meet every dollar
of paper"
1t will be we'll for the reader to under
stand just what kind of job the Presi-
dent of the United States would under
take to have congress perform, when he
advises the retirement Of the" greenbacks'
and treasury notes. of the United
States. The former amounts to S346.S :
Ol6 while the latter amounts to $144, 1885,
$780, thus showing an aggregate of about
five hundred millions of paper money to
be retired if this effort is to be undertake
en-.
If Mr.. Cleveland, or any of the advo-
Gates of the gold standard, will be good
enough to inform the American people
jus how congress can retire $500 900 900
of notes by cancellation, on a basis of
one hundred million dollars of gold re-
serve he will confer a mighty favor
along the lines of mathematical instruc-
ton. We presume it will be admitted that
the only possible way in which the gov
eminent Of the United States can accom-
plish such an act would be by going
into the markets of the world and Dor
rowing S500,O00,000 in gold, on bond is
sues equivalent to that amount
How many of the American people are
willing to see the national debt, now ag-
gregating $1,000 100000 increased $780,
100000 more-thereby entailing an in
creased interest charge of at least SIS
0GO000 per a1num? Yet those who advo-
cate the retirement of the "greenbacks"
and treasury notes practically advocate
an increase of this character We are
moved to quote the closing paragraph in
the article from The American in the
editorial named above
with the decline of prices consequent
upon such an enormous contraction of
the currency, would come a great fall
ing off in imports and reduced revenues.
The expenditures of the government
would be increased, while the revenue.
already too small, (by about $4,000 900
the last fiscal year, would further de-
crease, and the President no longer called
upon to borrow gold to meet the demands
for redemption. would be obliged to Dor
row gold 10 meet the deficit. THE GOLD
STANDARD WILL INEVITABLY
BANKRUPT THE COUNTRY"