Le MeschaceÌbeÌ. [volume] ([Lucy] La.) 1853-1942, 1895-02-09

whose duty II Is
now nuDarent IN

oounsels OF those whose duty - Is
10 rectify evils now apparent IN
our financial situation. They have TO
consider the question IF national credit snd
the consequences that viii follow from its col
lapse. Whatever ideas may be insisted upon
rs TO silver or biHe;aiism, n proper solutlga Of
the question now pressing upon US only re-
Quires recognition Of gold as well as silver
( and concession OF its Importance, rightfully
or wrongrully acquired, basis OF national
credit, necessity in the honorable discharge
Of our obligations payable In gold and badge Of
solvency. l do not understand that the real
friends OF silver desire condition that might
follow fnaction or neglect to appreciate the
meanine of the present extgiency, II Ii should
result in the entire banishment OF gold from
our financial and currency arrangements
Besides the treasury notes. which certainly
| should be paid IN gold amounting to nearly
s5t0,oOo coo. there will fall due IN 1904 $780, co.
600 of bonds issued during the last year, for
which we have received gold. and In 1907 near
| ~ s60o, 0o0,G00 Of t-per-ceut. bonds issued In
| 1877. Shall the payment OF these obligations
| il gold be repudiated? II they are 10 be pa i'd
in such manner as the preservation Of our
national honor and national solyency demands,
/ we should not destroy even imperil our
! ability to supply ourselves with gold fer this,
| purpose.
| While am let unfriendly to silver, while
desire to see Ii recognized to such An extent as
is consistent with financial safety and the
| preservation of national honor and credf. am
| not Willing to see gold entirely banishea from
our currency and finances To avert such a
! consequence / believe thorough and radical
| remedial legislation should be promptly
| passed therefore beg the congress to give
| the subject immediate attention In my opin-
| ion the secretary Of the treasury should be au-
| thorized to issue bonds of the government for
! the purpose Of procuring and maintain
| ing sufficient gold reserve and the
| redemption aEd cancellation OF the United
States legal tender notes and the
| treasury notes issued for the purchase u si,-
| yer Under the las of July IL 1890. We should
| be relieved from this humiliating process Of
| issuing bonds to procure gold to be immedi-
ately and repeatedly drawn out on these obli
cations for purpose not related to the benefit
OF our government or people. The principal
and interests of these bonds should be payable
on their face in gold, because they should be
sold for gold or its representative, ana be-
| cause there would now probably be dim
Guilty in favorably disposing OF bonds
not containing this stipulation.
suggest that the bonds be issued in denomi-
| nations $50 and $50 aud their multiples. and
that they Year interest at a rate not exceeding
3 per cent per annum do not see why they
should no. be payable fifty years from their
date. We of the present generation have large
amounts TO pay il we meet our obligations and
the treasury might well be permitted at his
discretion to receive on the sale OF bonds
the legal tender and treasury notes to be re-
tired. and of course. when they are thus retired
or redeemed In gold, they should bs
Cancelled. These bonds under existing
laws could be deposited by national
banks US security for circulation; and
| such banks should be allowed TO issue cir
| culation up to the face value of these or any
other bonds SO deposited except bonds out
standing bearing only per cent interest and
| which sell in the market at less than par.
National banks should not be allowed TO take
out circulating notes OF a less denomination
than $40, and when such as are now outstand-
Ing reach the treasury. except for redemption
and retirement, they should be Cancelled and
notes Of the denomination OF $40 and upward
issued in their stead. Silver certificates OF the
denomination OF $40 should be replaced by eer-
tifcates Of denominations under $40,
As a constant means for the maintenance OF
q reasonable supply of GOLD in the treasury our
duties of the imports should be paid In gela.
all other dues to tine government to be paid in
any other form OF money.
believe all the propositions have suggest
ed should be embodied In our laws II we are te
enjoy complete reinstatement of q sound
financial condition They need not interfere
with any currency scheme providing for
the increase OF the circulating me-
tional or state banks, since they
can easily be adjusted on such
a scheme. Objection has been made
to the issuance Of Understanding ebliga-
tions for the purpose OF securing the non-tn-
| terest-bearing notes. In point of fact. how
ever. these notes have burdenedns with q large
load Of interest. and 1t Is still aceumulating
The aggregate interest on the original issue OF
bonds. the proceeds OF which IN gold con-
stituted the reserve for the payment Of these
notes, amounted to $40 3a6. .25e on January I.
1895, and the annual charge for interest on
these bonds, and those issued for the same
purpose during the last year. will be 81. .l45 900,
dating from January l. 1895
While the cancellation OF these notes would
relieve us from the obligations already In
Cured on their account these figures are given
by way of suggesting that their existence has
not been free from interest charges. and thas
the longer they are outstanding, judging from
the experience OF the last year. the more ex-
pensive they win become.
In conclusion / desire to frankly confess
my reluctance to issuing more bonds in
present circumstances. and with no bet
ter results than have lately ae-
companied that course. can not,
however. refrain from adding to an assurance
of my anxiety to cooperate with the present
congress in any reasonable measure Of relief
in expression OF my determination to leave
nothing undone which furnishes hope for Inn
OF our disinclination and desirability to meet
with the strictest honor every national obliga-
tion.
ISigned1 GROVER CLEVELAND.
Executive Mansion. January Is. 1895.