The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1895-02-07
A LESSON IN FINANCE
Simple and Complete Cure for
Financial Ills.
ANOTHER PLAN OF LEGISLATION
The Presidents Idea is to Sell Ronds
Abroad, Retire Greenbacks and Make
Duties Payable in Coda Remedy
for the Impending Crisis.


Abroad, Retire Greenbacks and Make
Duties Payable in Coda Remedy
for the Impending Crisis.
WASHINGTON, January 3O.-The Presi-
dent to-day sent to Congress the follow
ing message:
To the Senate and Hou9e of Repre-
sentatives: In my last annual message
l commended to the serious consider
alton OF Congress the condition of our
national finances, and in connection
with the subject Endorsed plan of cur
rency legislation which at that time
seemed to furnish protection against i'm
pending danger. This plan has not
been approved by Congress. In the
meantime the situation has SO changed
that an emergency now appears so
threatening deem it my duty to ask at
the HAMS of the legislative branch oil
the government such prompt and effec-
tive action as will restore confidence in
our financial soundness and avert bust
ness disaster and universal distress
among our people.
Whatever may be the merits of the
plan outlined in my annual message as
a remedy for ills existing and as safe
guard against the depletion of the gold re-
serve Of the treasury | am now convinced
that its reception by Congress and our
present advan ed stage Of financial per-
,1io 10 o.i,}iti0nol .l,T
ent legislation. With our natural re-
sources of unlimited variety and pro-
ductive strength, and with people whose
activity and enterprise seek only fair OPP
portunitv to achieve national success
and greatness. our progress should not
be checked by false financial policy
and needless disregard of sound none
tary law nor should the timidity and
fear which they engender stand in the
way of our prosperity.
1t is hardly disputed that a 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 honestly and
sincerely attempting to relieve the stu
alton. Manifestedly this effort cannot
succeed unless it is made untrammeled
by prejudice, craftsmanship and with the
steadfast determination to resist tempta-
ton to accept any such party advantage.
We may we'll remember if we are eff
fected with financial difficulties that all
our people in all stations of life are con-
cerned, and surely those who suffer will
not receive the promotion of party in
terests as an excuse for permitting our
present troubles to advance to disas-
trous conclusion.
1t is also of the utmost Importance
that we approach study of the present
problems as free as possible from the
tyranny of preconceiyed opinions to the
end that in the common danger we may
GEEK, with unclouded vision, safe and
reasonable protection.
The real trouble which confronts US
consists in lack OF confidence, wide
spread and constantly increasing, in the
continuing ability or disposition OF the
government to pay its obligations in
gold. This lack of confidence grows to
some extent out OF palpable and appar-
ent embarrassments attending the gov
eminent under the existing laws in pro-
curing gold, and to greater extent out OF
the impossibilit OF either keeping 1t in
the treasury or canceling obligations by
it's expenditure 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, and are not we'll calcu-
lated to meet our present needs. Among
other disadvantages they are made pay
able in coin instead of specifically in
gold, which in existing conditions de-
tracts largely, and in an increasing ratio,
from their desirability as investments.
It is by no means certain that bonds OF
this description can be much longer dis
posed of at price credlta5le to the
financial character of our government.
The most dangerous and Irritating
feature of the situation. however, re-
mains to be mentioned. It is found in
the means by which the treasury is de-
spoiled of gold, thus obtained without
canceling a single government obliga-
tion. 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 outstanding about
1900 OOO. 900 currency notes of the gov
eminent for which gold may be de-
handed. and, curiously enough, the law
reouires that when presented and in
in fact redeemed and paid in gold they
NAV be reissued. Thus the same notes
NAV do duty many times, drawing gold
from the treasury nor can the process oe
arrested as long as private parties VINO
in profit or otherwise see advantage In
repeating the operation. More than
$500. 600, 600 of these notes have already
been redeem I'd in gold, and notwIth,
standing such redemption they are still
outstanding. Since the IL OF January,
1894. our bonded interest bearing debt
has been increased 500, OOO, COO for the
purpose OF obtaining gold to replenlsh
our god reserve. Two issues were
made amounting to $50 900 each
one in January and the other In NO,
yember, comprising period OF aoou!
ten months, nearly sos. 0O,O 900 in gold
was drawn from the treasury. This
made a second Issue necessary, and upon
that more than $5S,0O0,0O0 OF gold was
again realized. Between the date oil
this second issue and the present time,
covering a period of only about two
months. more than s69, 000.O 900 in gold
was expended without cancellation o.
government obligations or in any perma'
nent way beneiting our people or I'M
proving our pecuniary situation.
Financial events of the past year sug.
oest facts and conditions which should
Certainly attract attention. More than
sI72, OO0, 900 in gold has been drawn out
of the treasury during the year Tor the
purpose of shipping abroad or boarding
at home. While nearly sos, 0OO, 900 o.
the same was drawn out during the firs'
fen months of the year, sum aggregat'
ING more that two-t thirds that amount
being about SOS, OOO, 900, was drawn Out
during the following two months, TINS
Indicating a marked acceleration OF the
depicting process during that length, o.
time. The obligations upon which thii