Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1895-12-05

presentation Of the notes they received i'll
exchange for it.
The secretary of the treasury might uss
such notes taken frcm A surplus revenue
to buy gold IN the market Of course he
could not do this without paying d pre-
MUM. The premium would not remain
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 hand Immediately
clamoring for its return and resale at
higher premium.
Gold and the Revenue.
1t may be claimed that a large revenue
and redundant receipts might favorably
affect the situation under discussion by
affording an opportunity Of retaining
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 permanent, and
this IS precisely what is prohibited, 80 far
as United States notes are concerned. by
the law Of 1878 forbidding their further
Y retirement. That statute in ~ many
words provides that these notes, when re-
ceived into the treasury and belonging to
the United States, shall BE- paid out
again and kept in circulation. "
u It will, moreover, be readily seen that
the government could not refuse 70 pay
out United States notes and treasury notes
I ID current transactions when demanded
I and insist on paying ont silver alone and
( stin maintain the parity between that
metal and the currency representing gold.
! BESIDES the accumulation in the treasury
Of currency Of any kind exacted from the
I people through taxation is Justly regarded
! as an evil, and it cannot proceed far with
/ out vigorous protest against an unjustif-
able retention Of money from the business
/ OF the country and denunciation of
scheme of taxation which proves itself to
| be unjust when it takes from the earnings
/ and income of the citizen money so much
4 in excess Of the needs Of government sup
port that large sums can be gathered and
/ kept in the treasury
Perhaps it is supposed that sufficient
revenue receipts would in a sentimental
way improve the situation, by inspiring
confidence in our solvency and alIaying
the fear Of pecuniary exhaustion. And
4 yet through all our struggles to maintain
\ our gold reserve there never has been any
apprehension as to our ready ability to pay
\ our way with such money as we had, and
\ the question whether or not our current
receipts met our current expenses has not
entered into the estimate OF our soIvency.
4 of course the general state of our funds,
/ exclusive of gold, was entirely immaterial
\ to the foreign creditor and investor. His
4 debt could only be paid in gold, and his
+ only concern was our ability to keep on
4 hand that kind Of money.
J Inasmuch as the withdrawal Of our gold
has resulted largely from fright, there is
nothing apparent that will prevent its con
-
/ consequences. except such a change in our
\ financial methods as will reassure the
I frightened and make the desire for gold
4 less intense. 1t is not clear how an in
4 crease in revenue unless it be ID gold. can
satisfy those whose only anxiety is to gain
\ gold from the governments store.
Y 1t cannot therefore be safe to rely upon
4 increased revenues as a cure for our pres
\ ent troubles.
Why the Bonds Were Issued.
1t is possible that the suggestion of in
II creased revenue as a remedy for the diff
! culties we are considering may have orig
\ mated in an intimation or distinct allega-
1 tion that the bonds which have been issued
/ ostensibly to replenish our gold reserve
4 were really issued to supply insufficient
revenue. Nothing can be further from the
{
for the maintenance of our national credit.
4 AS has been shown, the gold thus OBJ
/ tanned has been drawn again from the
treasury upon United States notes and
1 treasury notes. This operation would
have been promptly prevented if possible,
I but these notes having thus been passed to
the treasury they became the money Of the
7 government, like any other ordinary gov
4 ernment funds and there was nothing to
do but to use them in paying government
expenses when needed.
AT no time when bonds have been isl
sued has there been any considerationsof
the question Of paying the expenses Of
I government with their proceeds. There
was no necessity to consider that question.
4 AT the time of each bond issue we had a
safe surplus in the treasury for ordinary
operations, exclusive Of the gold in our
reserve.
I The Silver Purchase Acts.
It is neither unfair nor unjust to charge
4 large share Of our present financial per
l plexties and dangers to the operation Of
4 the laws of 1878 and 1890 compelling the
4 purchase Of silver by the government
which not only furnished new treasury
4 obligation upon which its god could be
4 withdrawn, but SO increased the fear Of
an overwhelming food of silver and
forced descent to silver payments that
4 even the repeal OF these laws did not en-
( tirely cure the evils of their existence.
4 While / have endeavored to make a
J plain statement Of the disordered eondi-
I tion of our currency and the present dan
\ gers nenacing our prosperity, and to sug-
Z gest way which leads to a safer financial
( system, have constantly had in mind
2 ~
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 mints shall be at once
thrown open to the free, unlimited and
| independent coinage Of both gold and sill
yer Of full legal tender quality, regardless
Of the action Of any other government and
in full view of the fact that the ratio be-
tween the metals which they suggest calls
for 100 cents worth of gold in the gold
dollar at the present standard, and only
80 cents in intrinsic worth Of silver in tho
silver dollar.
Those who believe that our Independent
free coinage Of silver at an artificial ratio
with gold OF Is to l would restore the
parity between the metals, and conse-
quently between the coins, oppose an I'M
supported and Improbable theory to the
general belief and practice Of other na-
tions and to the teaching Of the wisest
statesmen and economists of the world
both in the past and present and, what
is far more conclusive, they run counter
to our own actual experiences.
Twice in our earlier history our law
makers, In attempting to establish bi-
metallic currency, undertook free coinage
upon a ratio which accidentally varied
from the actual relative values OF the TWO
metals not more than 3 per cent. In both
cases, notwithstanding greater difficulties
and cost of transportation than now exist
the coins whose intrinsic worth was un-
dervalued in the ratio gradually and
surely disappeared from our circulation
and went to other countries where their
real value was better recognized.
Acts Of congress were impotent TO create
equality where natural causes decreed
even slight inequality.
The Nations Indebtedness
Our country's Indebtedness, whether
owing by the government or existing be-
tween individuals, has been contracted
with reference to our present standard.
To decree by act OF congress that these
debts shall be payable in less valuable
dollars than those within the contempla-
tion and intention Of the parties when
contracted would operate to transfer, BY
the fiat OF law and without compensation,
-, ou,1,.re ~,ro,@,r4x4 or,d n x-o4,.~,,. -