Semi-weekly independent. (Plymouth, Marshall County, Ind.) 1895-1897, 1895-12-11

mat we are nnanclally III and that our
restoration to health may require heroic
treatment and unpleasant remedies.
In the present stage of our difficulty il
is not easy to understand how the amount
of our revenue receipts directly affects it.
The important question is not the guam
tity of money received in revenue pay
ments. but the kind of money we maintain
and our ability To continue III sound fnan-
cial condition. We are considering the
Governments holdings OF gold as related
to the soundness of our money and as
affecting our national credit and monetary
strength. If the gold reserve had never
been impaired; if no bonds had been is
sued TO replenish it: if there had been no
question concerning our ability TO con
tinue gold payments; if our revenues We're
now paid in gold, and if we could look TO
our gold receipts as a means of maintain
ing safe reserve. the amount Of our
revenues would be an influential facto.
in the problem. But unfortunately all
the circumstances that might lend weight
TO this consideration are entirely lacking.
No Gold from Revenues.
In OR present predcament no gold is
received in payment of revenue charges.
nor would there be if the revenues We're
y.
when not in silver certificates. consist
of United States notes and treasury notes
issued for silver purchases. These forms
of money are only useful TO the Govern
ment in paying its current, ordinary cx-
penses, and its quantity in Government
possession does no. in the least contrib
ute toward giving us that kind of safe
financial standing or condition which is
built on gold alone.
II it is said that these notes. if held by
the Government, can be used 10 obtain
gold for our reserve. the answer is easy.
The people draw gold from the treasury
on demand upon United States notes and
treasury notes, but the proposition that
the treasury can on demand draw gold
from the people upon them would be re-
garded i'll these days with wonder and
amusement. And even if this could be
done there is nothing to prevent those
thus parting with their gold from regain
ing it the next day or the next hour by
the presentation of the notes they receiv-
ed in exchange for it. The secretary OF
the treasury might use such not taken
from a surplus revenue to buy gold in the
market. OF course he could do this with
out paying Il premium. Private holders
of gold, and unlike the Government.
having no parity 10 maintain. would not
be restrained from making the best bar
gain possible when they furnished gold
10 the treasury; but the moment the sec
rotary of the treasury bought gold on any
terms above par he would establish Il
general and universal premium upon il.
thus breaking down the parity between
gold and silver which the Government Is
pledged 10 maintain. and opening the
way 10 new and serious complications.
Meantime the premium would not remain
stationary, and tie absurd spectacle
might be presented of a dealer selling
gold TO the Government, and with ('nited
States or treasury notes in hand imme-
diately clamoring for its return and
resale at a higher premium.
1t may be claimed that a large revenue
and redundant receipts might favOrably
affect the situation under discussion by
affording IN opportunity of retaining these
notes in the treasury when received, and
thus preventing their presenta ton for
gold. Such retention. to be useful, ought
to be at least measurably permanent: and
this is precisely what is prohibited. so far
as United States notes are concerned by
the law of 1878 forbidding their further
retirement. That statute, in SO many
words. provides that these notes. when
received into the treasury and belonging
to the United States. shall be paid out
again and kept in circulation" 1t will.
moreover. be readily seen that the Gov
eminent could not refuse TO pay out L nit
ed States notes and treasury notes in cur
rent transactions when demanded and
insist on paying out silver alone and still
maintain the parity between that metal
and the currency representing gold. Be
sides, the accumulation in the treasury of
currency of any kind eXacted from the
people through taxation is justly regarded
as an evil and it cannot proceed far with
out vigorous protest against an unjustit-
able retention of money from the business
of the country and a denunciat ton of a
scheme of taxation which proves itself to
be unjust when it takes from the earnings
and income of the citizens money SO
much in excess of the needs of govern
ment support that large sums can be gath
cred and kept in the treasury. Such con-
dition has heretofore. in times of surplus
revenue led the Government to restore
currency TO the people by the purchase of
its unmatured bonds at large premium
and by a large increase of its deposits in
national banks, and we easily remember
that the abuse of treasury accumulation
has furnished most persuasive argument
in favor of legislation radically reducing
our tariff taxation.
Perhaps il is supposed that sufficient
revenue receipts would in a sentimental
way improve the situation by inspiring
confidence in our solvency and allaying
the fear of pecuniary exhaustion. And
yet. through all our struggles TO maintain
our gold reserve. there never has been
any apprehension as to our ready ability
to pay our way with such money as we
had: and the question whether or not our
current receipts met our current expenses
has not entered into the estimate of our
solvency. OF course. the general state
of our funds. exclusive of gold, was en-
tirely immaterial to the foreign creditor
and investor. His debt could only be
paid in gold, and his only concern was
our ability To keep on hand that kind of
money.
On July I. 1892. more than year and
half before the first bonds were issued 10
replenish the gold reserve there was a net
balance in the treasury. exclusive of such
reserve. of less than S13,000,000 but the
4 -.