The Canton times. (Canton, Miss.) 1893-1906, 1895-12-06

|
FOOLISH purvcvor OF gold for nations abroad Oh
for speculation and boarding by our citizens Il,
nome. should expect to see gold resume Its
natural and normal functions In the business
AFFAIRS q the country, and cease to be an object
exciting their sensitive imagination.
THE SILVER sEIGNIoRAGE.
do not overlook the fact that the cancella-
tton of the treasury notes issued under the sill
ver-purchasing act Of 1890 would leave the
treasury IN the actual ownership OF SUFFICIENT
Sl1eNW0oo In standard dollars. II
~, is,s worthy Of consideration whether
and slowly put into circulation, as in the judg-
ment OF the secretary of the treasury, the
necessities of the country should require.
| NOT QUESTION OF QUANTITY. BUT KIND.
In the present stage Of our difficulty it is not
| easy to understand the extent to which our
| revenue receipts directly affects 1t. The i'm
| portant question Is not the quantity OF money
| received Ill revenue payments but the kind OF
money we maintain and our ability to continue
| In sound financial condition. We are consid-
ering the government holding Of gold as re-
lated to the soundness and as affecting
our national credit and our monetary
strength. II our gold reserve had never been
impaired; II no bonds had been issued to re-
plcnlsh; II there had been no fear and tim idity
concerning our ability to continue gold pay
ment: II any part OF our revenues were now
paid in gold and If we could look to our gold
receipts as u means of maintaining safe re-
serve the amount of our reVen les would be an
influential factor in the problem. But, unfor-
tunately. all the circumstances that might lend
weight 10 this consideration are entirely lack
ing. In our present predicament no gold is re-
ceived by the government in payment of reve-
nue. charges. nor would there be il the revenues
were increased. The receipts OF the treasury
When not In silver certificates consist of
United states notes and treasury notes issued
for silver purchases. These forms OF money are
only useful to the government paying it's cur
rent ordinary expenses and its quantity
in government possession does not In the least
contribute toward giving us that Kind of safe
financial standing or condition which is built
on gold alone. II it is said that those notes If
held by the government can be used to obtain
gold Tor our reserve the answer is eaSy. The
people draw gold from the treasury on demand
upon United States notes and treasury 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 amusement, and even II this could be done
there Is nothing to prevent those thus parting
with their gold from regaining it by the next
day or the next hour by the presentation of the
notes they received in exchange for it,
The secretary of the treasury might use such
notes taken from surplus revenue to buy
gold In the market. or course he couId not do
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-
lsh general and universal premium upon it.
and silver. which the government is pledged 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 o dealer selling gold to |
the government and with United States notes |
or treasury notes in his hand Immediately |
for its return and q resale at a |
higher premium. 1t may be claimed that a |
large revenue and reduced receipts might |
favorably affect the situation under discussion
rhf n mr. = nSn
notes in the treasury when received, and thus
their presentation for gold.
Such retention to be useful ought TO be at
least measurably permanent, and this is pre-
,isely what is prohibited SO far as United
States notes are concerned by the law of 1873
'orbidding their future retirement.
NO FEARS OF OUR soLvENCY.
Perhaps 1t is supposed that sufficient revenue
receipts would. In sentimental way, improve
,he situation by inspiring confidence in our
'olyency and allaying the fear of pecuniary
exhaustion, and yet all through our struggle to
our gold reserve there never has been |
my apprehension as to our ready ability topay |
,ur way with such money as we had, and the |
question whether or not our current receipts
net Our current expenses entered into the es-
innate OF our solvency. or course the general
tate OF our funds, exclusive of gold, was en- |
irely immaterial to the foreign creditor and
INVESTOR His debt could only be paid in gold |
nd his only concern was our ability to keep
n hand that kind of money.
On July l, 1892 more than year and half
efore the first bonds were issued to repl niSh
he gold reserve, there was net balance in the
reasury exclusive OF such reserve, of less
1an Sl3G00,OOO, but the gold reserve amounted
more than 114,U00,000, which was the quiet /
ig feature OF the situation. 1t was when the | '
Jock Of gold began rapidly to fall that fright q
lpervened, and our securities held abroad G
ere returned for sale, and debts owed abroad v
ere pressed for payment. In the meantime | r
1tensive shipments Of gold and other I'M {
vorable indications caused restlessness and o
light among our people at home. O
THE BOARDING OF GOLD. e
Thereupon the general state of our funds. q
,clusive of gold, became also immaterial to y
em, and they, too, drew gold from the treas y
y for boarding against all contingencies. -
mis- is plainly shown by the large increase in -
e proportion of gold withdrawn which was 9
tanned by our own people as time and threat =,
ling Incidents progressed. During the fiscal =,
ar ending June 30, 1891, nearly $S5 900 900 in =.
Id was Withdrawn from the treasury and "
out $77, 600 900 was sent abroad while during y,
e fiscal year ending June 30. 1895, over Sl17,- "
1000 was drawn out, of which only s66,0oo0O0 n.
IS shipped, leaving large balance OF such II,
thdrawais to be accounted for by domestic y,
arding Va
ENTY OF MONEY FOR CURRENT EXPENSES. CT
At no time when bonds have been issued has e,
BEEN se Of s Of as
cir proceeds. There was no necessity to con-
Ter that question, At the time of each bond
ue we had a safe surplus in the treasury for NJ
iinary operations exclusive of the gold in n
r reserves In February, 1894, when the first Ia
ue OF our bonds was made such surplus mn
counted to over $4,000 0OO In November | -
EN- the second issue was made. il amounted | on
over A2 100000, and in February 1885, when se
nds for the third time were issued. such sur en-
IS amonted to more than sloo,OoO,O0o. 1t now tn
cunts to sos. or. 40. 80. ma
BESIDES all this the secretary of the treasury ar
no authority whatever to issue bonds to sir
rease the ordinary revenue or pay current sp
Denses. can not but think there has been ms
ne confusion OF ideas regarding the effects sti
the issue Of bonds and the results of the n
hurawal OF goIo- II was tne latter process su,
not the former that by substituting in the me
asury United States notes and treasury | ms,
es TOT goio increased oy their amour. tne ize
ney which was in the first instance subject I
ordinary government expenditure sui
WHEN THE WITHDRAWALS BEGAN. spe
Though the law compelling an increased iei