Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1895-02-08

600 5O-YEAR BONDS.
Must Maintain the GOvcrnmen
Credit-In Present Crisis Part
Feeling should be Banished-At
vises Another Issue Of bonds.
+ On the 2Sth ult. the President sen
the following message to Congress:
Q To the Senate and House of Repre-
, sentatives: In my last annual mes
D sage | commended to the serious con
sideration Of Congress the condition
of our national finances, and in con
nection with the subject indorsed /.
plan of currency legislation which a
that time seemed to furnish protec
tion against impending danger. Thi,
plan has not been approved by Con.
gress. In the meantime the situation
has so changed and an emergency now
appears SO threatening l deem it my
duty to ask at the hands OF the legis.
lative branch of the government such
prompt and effective action as will
restore confidence in our financial
soundness and avert business disaster
and universal distress among our peo-
pie.
Whatever may be the merits OF the
plan outlined in my annual message
as remedy for ills existing, and as a
safeguard against the depletion of the
gold reserve then in the treasury,
am now convinced that its reception
by Congress and our present advanced
stage of financial perplexity necessi-
tates additional or different legisla-
tion. With our national resources of
unlimited variety and productive
strength, and with people whose &C.
tivity and enterprise seek only fair
opportunity to achieve national sue
cess and greatness, our progress should
not be checked by a false financial
policy and needless disregard of a
sound monetary law. nor should the
timidity and fear which they engender
stand in the way Of our prosperity.
1t is hardly disputed that predica-
ment confronts US to-day. Therefore
no one in any degree responsible for
the making and execution of our laws
should fail in patriotic duty in honest
ly and sincerely attempting to relieve
the situation. Msnifestly this effort
cannot succeed unless it is made un.
trammeled by prejudice, partisanship,
and with the steadfast determination
to resist temptation to accept any
such party advantage. We may weli
remember if we are affected with finan-
cial difficulties that all our people in
all stations of life are concerned, and
surely those who suffer will not re.
ceive the promotion of party interests
as an excuse for permitting our pres
ent troubles to advance to disastrous
conclusion.
1t is also OF the utmost Importance
that We approach q study OF the pres
ent problem as free as possible from
the tyranny of preconceived opinions,
to the end that in the common danger
We may seek, with unclouded vision,
safe and reasonable protection.
The real trouble which confron Is US
consists in q lack of confidence, wide
spread and constantly increasing, in
the continuing ability or disposition
of the government to pay its obliga-
tions in gold. This lack of confidence
grows to some extent out of palpable
and apparent embarrassment attend
ing the government under the exist
ing laws in procuring gold and to a
greater extent out OF the impossibility
of either keeping it in the treasury
or canceling obligations by its ex-
penditure after it is obtained. The
only way left open to the govern
ment to procure gold is by the issue
and sale of bonds. The only bonds
that can be Issued were authorized
nearly twenty-five years ago, andare
not well calculated to meet our pres
ent needs. Among other disadvant-
ages they are made payable in coin,
instead of specifically in gold,:. which
in existing conditions detracts larg ely,
and in an increasing ratio, from their
40 investments. It is by
no means certain that bonds of this
description can be much longer dis
posed of at price creditable to the
financial character of our government.
The most dangerous and irritating
feature of the situation, however, re-
mains to be mentioned. 1t is found
in the means by which the treasury is
despoiled of gold thus obtained, with
out cancelling a single government
obligation and solely for the benefit of
those who find profit in shipping it
abroad, or whose fears induce them to
hoard it at home. We have outstand-
ing about $500, ,OOO, 900 currency notes
Of the government, for which gold
may be demanded, and, curiously
enough, the law requires that when
presented and, in fact, redeemed and
paid in gold they be re-issued. Thus
the same notes may do duty many
times, drawing gold from the treasury,
nor can the process be arrested as
long as private parties who, in profit
or otherwise, see advantage in repeat
ing the operation. More than $780,
OOO,OO of these notes have already
been redeemed in gold, and notwith-
standing such redemption, they are
still outstanding. Since the 18th OF
January, 1894, our bonded interest
bearing debt has been increased $780,
0OO, 600 for the purpose OF obtaining
gold to replenish our gold reserve.
Two issues were made, amounting to