The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-04

D
ton as his famous tariff reform message
did. y very large part Of it is devoted
to the financial condition Of the govern
ment in fact. that matter is its chief
feature, and it IS presented so ably and
thoroughly, and with so much earnest
ness, that other features arc pushed far
into the BACKGROUND.
There is Of course, considerable in
terest felt in what is said in the mes
sage in respect 10 our relations with for
eign governments. 1t is pointed out that
the government has taken a firm stand in
support of the Monroe doctrine in the
boundary dispute between Great Britain
and Venezuela; that Notwithstanding the
sympathy in this country for the Cuban
revolutionists It has observed in good
faith its obligations to Spain which in
ternationSl relationship imposes and that
it has taken all possible means to pro-
tect American missionaries and Ameri-
can interests in Armenia. All of these
things, however, the country was famil-
lar with. and hence there was little the
President gould say in respect to them
that would lend additional interest to
them.
What the country expected and hoped
for was a presentation of the financial
question that would so shape public senti-
ment that congress would be forced to
act upon that question. We feel safe
in saying that the country is not dis
appointed. The financial question is pre-
scented in such MANNER that even those
who have the crudest kind of knowledge
of financial matters can easily under
stand il.
The President attributes our present
financial difficulties to the greenbacks
and treasury notes. As long as the green
backs are outstanding it will be impossi-
BILE to keep up the gold reserve without
increasing the bonded debt, and the fail
ure to keep up that reserve means loss
of confidence in the ability Of the gov
eminent to maintain sound money cur
rency, and a loss of confidence in that
respect means panics, business disasters
and hard times.
But how are we to keep gold in the
treasury? There are only two ways
ways which the President points out.
One is by selling bonds for gold when
ever the gold reserve reaches the danger
line, and the other is to fund the green
backs and treasury notes into long term
bonds, bearing a low rate of interest, and
thus take them out of circulation. With
the government notes out of circulation
the treasury would not have to furnish
gold for export and for boarding as it
does now. 1t is urged. however, that the
government gets the use of the green
backs for nothing, and that if bonds
were issued for them interest would have
to be paid on the bonds. The President
calls attention TO the fact that to main
tain these greenbacks in circulation
bonds to the amount of nearly S26O. 900. 900
have already been issued, on which in
terest to the amount of $l1,OOO.OOO annu-
ally is paid. 1t cannot be said, therefore,
that the greenbacks cost nothing. They
have cost a great DEAL are costing vast
amount annually, and promise to cost a
great deal more.
The amount of the greenbacks is $780,
100000, and of the treasury notes $685. OO,-
000 1t would take about s5OO.OO0OOO of
| bonds to get rid of them. 1t is probable
that a 2k per cent. bond could be sold in
| Europe for gold at par. The gold OBJ
tanned for them would replace them in
the currency circulation, or the bonds
could be sold in this country and made the
basis for additional bank note circulation
which would take the place of the green
backs and treasury notes.
A glance at the figures which the Pres
ident furnishes shows that the withdrawal
of gold from the treasury increased as
the volume Of government notes increased
under the law that authorized the mr.
chase of silver, showing that the with
drawal of gold was not wholly for the
purpose of settling our trade balances
abroad, but was caused partly by a lack
of confidence in the ability of the govern.
ment to maintain gold payments.
The President combats the argument
advanced by some of the republican lead.
ers that if the revenues were so increased
that there would always be sur.
plus instead of a deficit the withdrawal
of gold from the treasury would cease
BY figures he shows that when the with
drawal of gold was the heaviest Their,
was surplus in the treasury beyond tn,
needs of the government of many mil
lions of dollars. An increase in the reve
nues, therefore, would not in his opin
ion, prevent the withdrawal of gold.
In respect to the silver question tn,
President is emphatic and positive. II,
accords sincerity to the silverites. bu
declares they have no reason whateve
for their assertion that if the coinage O
silver We're made free and unlimited tn,
export of gold would cease, and tina
silver and gold would circulate on a par
ity at the present ratio. No human
contriyanee," he says "or act of legisla
ton has ever been able to hold the tw,
metals together in free coinage at a rati
appreciably different from that estab