Crawford avalanche. (Grayling, Mich.) 1879-19??, 1895-02-07


eating a marked acceleration of the de-
pleting process with the lapse of time.
Obligations Still Outstanding.
''The obligations upon which this gold
has been drawn from the treasury are
still outstanding and are available for
use in repeating the exhausting operation
with shorter intervals as our perplexities
accumulate.
Conditions are certainly supervening
tending 10 make the bonds which may be
issued TO replenish our gold less useful for
that purpose. An adequate gold reserve
is in all circumstances absolutely essential
to the upholding of our public credit and
to the maintenance of our high national
character.
Our gold reserve has again reached
such state of diminution as TO require
its speedy reinforcement. The aggrava-
tions that must inevitably follow present
conditions and methods will certainly
lead to misfortune and loss, not only to
our national credit and prosperity, and to
financial enterprise, but to those of our
people who seek employment as means
of livelihood and to those whose only
capital is their daily labor.
1T will hardly do to say that simple
increase of revenue win cure our troubles.
The apprehension now. existing and con-
stantly increasing as to our financial abili-
ty does not rest upon a calculation of our
revenue. The time has passed when the
eyes of investors abroad and our people
at home were fixed upon the revenues of
the government. Changed conditions
have attracted their attention to the gold
of the government. There need be no
fear that we cannot pay cur current ex-
penses with such money as we have.
There is now in the treasury comfort
able surplus of more than $63, 600, 900,
but ii is not in gold and therefore does
not meet our difficulty.
Silver Question Not the Issue.
Il cannot see that differences of opin-
ion concerning the extent to which silver
ought to be coined or used in our cur
rency should interfere with the counsels
of those whose duty it is to rectify evils
now apparent in our financial situation.
They have to consider the question of ma
tional credit and the consequences that
will follow from its collapse. Whatever
ideas may be insisted on as to silver or
bimetallism, a proper solution of the ques-
ton now pressing upon us only requires
a
a concession of it's Importance, rightfully
or wrongfulfy acquired, as n basis of ma
tional credit, "a necessity in the honorable
discharge of our obligations payable in
gold and badge of solvency. / do not
understand that the real friends of silver
desire n condition that might follow in
action or neglect TO appreciate the mean
ing of the present exigcncy Il it should
result in the entire banishment of gold
from our financial and currency arrange
ments.
Besides the treasury notes which cor
tainly should be paid in gold, amounting
to nearly $500, 0,000. ZOO. there will fall due
in 1904 S100,000,OO0 of bonds issued dur
ing the last year for which we have re-
ceived gold, and in 1907 nearly 00,O00,-
600 of 4 per cent. bonds issued in 1877.
Shall the payment of these obligations IN
gold be repudiated? If they are to be
paid in such a manner as the preserva-
ton of our national honor and national
solvency demands, we should not destroy
or even imperil our ability to supply our
selves with gold for that purpose.
while / am not unfriendly TO silver,
and while l desire to see il recognized to
such an extent as IL consistent with finan-
tional honor and credit, 1 am not will
ing to see gold entirely banished from
our currency and finances. To avert such
a consequence, L believe thorough and
radical remedial legislation should be
Congress to give the subject immediate
attention.
Secretary Should Have Authority.
I'm my opinion, the Secretary of the
Treasury should he authorized to issue
bonds Of the Government for the purpose
of procuring and maintaining sufficient
gold reserve and the redemption and can
collation. of the United States legal-ten-
der notes and the treasury notes issued
for the purchase Of silver under the law
of July IA, 1890. We should be relieved
from the humiliating process of issuing
bonds TO procure gold to be Immediately
and repeatedly drawn out On these obli-
cations for purposes not related to the
benefit of our Government or our people,
The principal and interest of these bonds
should be payable on their face in gold,
because they should be sold only for gold
or its representative, and because there
would now probably be difficulty In favor
ably disposing of bonds not containing
this stipulation.
II suggest that the bonds be issued in
denominations of $50 and $50 and their
multiples, and that they bear interest at
u rate not exceeding per cent. per an
mum. l do not see why they should not
be payable fifty years from their dates.
We of the present generation have large
amounts to pay IL we meet our obliga-
tions and long bonds are most salable.
Ihe Secretary of the Treasury might well
b. permitted at his discretion to receive
on the sale of bonds the legal tender and
treasury notes to be- retired and, of
course, when they are thus retired or re-
deemed in gold they should be Cancelled.
II believe all the pro ,isons have sug-
gcsted should be embodied in our laws
if we are TO enjoy complete reinstate-
ment Of sound financial condition.
They need not interfere with any cur
rency scheme providing for the increase
Of the circulating medium through the
agency of national or State banks, since
they can easily be adjusted to such a
scheme.
"In conclusion desire to frankly con-
fess my reluctance TO issuing more bonds
in present circumstances and with no bet
ter results than have lately followed that
course. / cannot, however, refrain from
alding to an assurance of my anxiety to
cooperate with the present Congress in
any reasonable measure of relief an ex-
preston Of my determination to leave
nothing undone which furnishes hope
for improving the situation or checking
suspicion Of our disinclination or dsa-
bility to meet with the strictest honor