Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1895-12-06

In such a perplexing and delicate pre-
dicameilt as to require pfompt ahu
wise treatment We may well pc en-
couraged to earnest effort IN inns :ulreS
ton when we recall the steps alreauy
taken toward improving our economic
and financial situation, and when we
appreciate how well the way has peeh
prepared for Further progress py az
aroused and Intelligent popular lnteIs
est In these subjects. BY commahu q
the people d customs-reVenue system,
designed for the protection and benent
OF favored classes at the expense Oh llis
great mass of our countrymen' anu
which. while inefficient for the purpose
of revenue. curtailed our trade fela-
lions and impeded our entrance 10 lhe
markets of the world, has been super
seeded by tariff policy which in pfln
ciple is based upon denial OF the flsht
of the government to obstruct the ave-
nues to our peoples cheap living or les
sen their comfort and contentrnent Tor
the sake of according especial advan'
tages to favorites and which, While en-
couraging our intercourse ana trade
| with OIL Ell nations, recognizes the fact
| that American self-feliance, thrift ana
| ingenuity can build up our countrys
industry and develop its resources
| more surely than enervating paternal-
! ism.
The silver Notes.
The compulsory purchase and coin
age of silver by the government I'M
! checked and unregulated by business
/ conditions and needless of our currency
| needs which for more than fifteen years
] diluted our circulating medium, under
4 mined confidence abroad in our finan-
/ cial ability and at last eliminated in
/ distress and panic at home, has been
recently stopped by the repeal of the
laws which forced this reckless scheme
/ upon the country The things thus ac-
4 complished, Notwithstanding their ex-
treme Importance and beneficent eff
fects, fall tar short of curing the mon
! etary evils from which we suffer as a
result of long indulgence in ill-advised
financial eSpedients. The currency de-
nominated United States notes, and
commonly known as greenbacks, was
/ issued in large volume during the late
civil war and was Intended originally
TO meet the exigencies of that period
+ 1t will be seen by reference to the de-
bates in congress at the time the laws
were passed authorizing the issue of
these notes. that their advocates de-
clarod they were intended for only tenn
porary use and to meet the emergency
of war In almost If not all the laws
relating to them some provision was
made contemplating their voluntary or
compulsory retirement. A large guam
tity of them, however, were kept on foot
and mingled with the currency of the
country. so that at the close of the
year 1874 they amounted to 1881 999, O73.
The Resumption Act.
, immediately after that date, and in jan
uary, 1875, law was passed providing
for the resumption of specie payments,
/. by which the secretary Of the treasury
, was required, whenever additional cir
culation was issued to national banks,
to retire United States notes equal in amount
to so per cent OF such additional national bank
circulation until such notes were reduced tc
$500 000 O000. This law further provided that
on and after the first day of January, 1879
, the United States notes then outstanding
: should be redeemed in coin, and in order tc
provide and prepare for such redemption. the
secretary of the treasury was authorized moi
only to use any surplus revenues of the gov
: eminent but to issue bonds of the United
States and dispose of them for coin, and 10 use
the proceeds for the purposes contemplatet
: by the statute. In May, 1873, and before the
, date thus appointed for the redemption ant
! retirement of these notes, another statute wa
). passed. fotbidding their further cancellation
and retirement. Some of them had, however
been previously redeemed and cancelled upol
;, the issue of additional national bank crcula
: tion as permitted by the law of 1875, SO tina
!, the amount outstanding at the time of TIL
. massage of the act forbidding their furthe
= retirement was S346,661 DIG. The law of 1877
= did not stop at distinct Prohibition but con
g taincd in addition; the following express pro
vision: .'And when any Of said notes may b
:. redeemed or be received by the treasury unde
y any Law from any source whatever, and sha
y belong to the United States, they shall not b
!. retired cancelled, or destroyed, but they shal
be reissued and paid out again and kept L
circulation
would Retire tic Ereenbacks.
= This was the condition of affairs on the frs
, day OF January, 1879, which had been fiXe
% upon four years before as the date tor enter
!" ing upon the redemption and retirement {
ali these notes. and for which such abundar
= means had been provided. Tie goyernner
= was put in the anomalous situation OF OWN
= to the holders Of its notes; debts payable ]
!, gold on demand, which could neither be re
It fired by receiving such notes in discharge
4 obligation due the government, nor caneeile
4 nv actual payment in gold. II was forced
Is redeem without redemption and to pay wi ho
=. acquittanee. 30
If There has been issued and sold $4,000
r mao Of the bonds authorized by the resumI
lg lion act of 1876; the proceeds Of which, t
III pether with other gold in the treasul-
81 created a gold fund deemed sufficient
a. meet the demands which might be mac
IN ,Jpon 1t for the redemption OF the GU
M standing United States notes. This run
~ together with such other go!d as miSRt
III bic for the same purpose; has been sin'
of called our gold reserve, and $10Vt0e,O3o h;
Do heei regarded as an adequate amount
r accomplish it's object. This fund amour
&c ed on the first day of January, 1919,
re S1l4 1893 800 and though thereafter CO
of stantly tJuetuating; 1t did not fall belo
1g that sum until July; 1892. In April. 10
y, for the first time since its establishmer
IT. this reserve amounted to less than Slo'
ch 900 COO. containing at that date only 81
rs O11;3S0.
Silver Purchase Act
n In the meantime, and in July, 1880,
or act had been passed directing larger go
Sc ernmental monthly purchases Of silV
ar than had been required under preElo
or laws. and providing that in payment |
ay such silver treasury notes OF the Unit
CHI States should be issued payable on c
MS mand in gold or silver coin at the disci
ar ton of the secretary of the treasury.
Ia was however, declared in the act 10
al '.The established policy of the emit
it States to maintain the two metals on
nd parity with each other upon the pres.
let legal ratio or such ratio as may be pi
nd v;ded by law"
I'd In view of this declaration it was r
nd deemed permissible for the secretary
Die the treasury to exercise the discretion
ith farms conferred on him by refusing to p
ed gold on these notes when demanded,
lie cause by such discrimination IN favor
nd the gold dollar the so-called party OF
as- two metals wo I'D be destroyed and gra
de and DANGEROUS consequences would be p
: a cipitated by affirming or accentuaunS
tlv constantly widening disparity DetWt
his their actual values under the existing
of ito 1t thus resulted that the tFeaSt
es- notes issued in payment of silver p
Tor chases under the law OF 1880 were nee
IL ss,,t t,Ns,- a