The Penn's Grove record., 1895-12-06

prompt and wise treatment. We may WI
be encouraged to earnest effort in TINS ar
rection when we recall the steps aireaoy
taken toward improving our economic anu
financial situation, and when we apprf--
ciate how well the way has beeh prepareu
for further progress by an aroused ana IN
t~eiligent popular interest in these SUP
jects.
By command Of the people a customs-ref-
enue system, designed for the protecton
and benefit of favored classes at the eA-
pense. of the great mass Of our country
men, and which, while efficient for tne
purpose of revenue, curtailed our trace
relations and impeded our entrafice to the
markets Of the world, has been superseoeu
by a tariff policy which in principle is
based upon a denial of the right OF the
| government to obstruct the avenues to our
| peoples cheap living or lessen their com
fort and contentment, for the sake OIL ac-
eording especial advantages to favorites'
and which, while encouraging our inter
course and trade with other nations, recog-
nizes the fact that American self-reliaDce'
! thrift and ingenuity can buiid up our coun-
| try's industries and develop its resources
more surely than e~nervating paternalism.
The Silver Purchase Law.
The compulsory purchase and coinage OF
silver by the government, unchecked u
| ~unreguIated by business conditions ana
| needless of our currency needs, which LOT
more than fifteen years diluted our circuiat,
| ing medium. undermined confidence ABROAD
in our financial ability, and at last cnlmf
| mated in distress and panic at home, mas
been recently stopped by the repeal OF tine
| laws which forced this reckless scheme
upon the country, -
The things thus accomplished, notWitn-
standing their extreme importance and be-
| nefcent effects, fall far short of curing
/ the monetary evils from which we suffer
as a result of long indulgence in Had
vised financial expedients.
Government Notes.
The currency denominated United States
notes. and commonly known as greenpacss
| was issued in large volume during the late
civil war. and was intended originally 70
meet the exigencies of that period. 1t VIII
be seen by a reference to the debates IN
| Congress at the time the laws were passed
authorizing the issue Of these notes that
their advocates declared they were for
| only temporary use and to meet the emer-
gency of war. In almost, If not all, the
| laws relating to them some provision was
! made contemplating their voluntary or
compulsory retirement. A large quantity
| 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 1891. 999.073. Immediately
| after that date, and in January, 1875, a
law was passed providing for the resump-
ton of specie payments, by which the Sec
rotary of the Treasury was required when
| ever additional circulation was issued to
national banks, to retire United States
notes equal In amount to 80 per cent. OF
| such additional national bank circulation
/ until such notes were reduced to $30O,OOO,-
600. This law further provided that on
| and after the LIST day of January, 1873, the
/ United States notes thus outstanding
| should be redeemed in coin, and, In order to
provide and prepare for u redemption
! the Secretary of the Treasury was author
lied not only to use any surplus revenues
of the government, but to issue bonds of
| the United States and dispose of them for
| coin, and to use the proceeds for the pur-
poses contemplated by the statute.
In May, 1878, and before the date thus
| appointed for redemption and retirement of
\ these notes, another statute was passed
forbidding their further cancellation and
| retirement. Some of them had, however,
been previously, redeemed and cancelled
upon the issue of additional national bank
| circulation. as permitted by the laws of
1875. SO that the amount outstanding at
the time of the passage of the act forbid
! ding their further retirement was $780,
/ 6S1,016.
prohibition, but contained, in addition, the
following express provision:
"And when any of said notes may be
redeemed or be received into the Treasury,
under any law, from any source whatever,
and shall belong to the United States,
! they shall not be retired, cancelled or de
stroyed. but they shall be reissued and paid
ont again and kept in circulation"
This was the condition of affairs on
the 1st day of January, 1879, which had
been fixed upon four years before as the
4 date for entering upon the redemption and
l rattrapaart nf oil fhaga unfac md far mhfrh
such abundant means had been provided.
The government was put in the anoma-
lons situation of owing to the holders of
its notes, debts payable in gold on demand,
which could neither be retired by receiving
such notes in discharge of obligations due
the government nor cancelled by actual
payment in gold. 1t was forced to redeem
without redemption and to pay without
acquittance.
The Gold Reserve.
There had been issued an dsold $685.
100000 of the bonds authorized by the
resumption of 1875. the proceeds Of which,
together with other gold in the Treasury,
created a gold fund deemed sufficient to
meet the demands which might be made
upon 1t for the redemption of the out
standing United States notes. This fund,
together with such other gold as might. be
from time to tim in the Treasury, avsila-
bic for the same purpose, has been since
called our gold reserve, and $100,000,000
has been regarded as an adequate amount
to accomplish its object. This fund
amounted on the LIST day Of January, 1879.
to STA, 193, 800, and though thereafter
constantly fuctuating, It did not fall below
that sum until July. 1892. In April, 1898.
for the first time since its establishment,
this reserve amounted to less than $780,
100000, containing at that date only $97,-
011,330.
In the meantime, and in July, 1890, an
4 uox had haan nasoad .dfracttuu Ia r0ar uav.
Ornamental monthly purchases Of silver
than had been required under previous
laws and providing that in payment for
such silver Treasury notes of the United
States should be issued. payable on demand
in gold. or silver coin, at the discretion OF
however, declared in the act to be .'the es.
tahlished policy. of the United States to
maintain the two metals on a parity with
each other upon the present legal ratio OF