The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-02-02
He Abandons the Carlisle Cur
rency System.
Asks Authority for a New Issue
Of Gold Bonds.
Difficulties Confronting the Treasury De-
pnrtment Under the Resumption Act
President Thinks 1t Impossi-
hlo To Make Another Fa-
,oralte Issue With-
out Legislation.

withdrawing MS support from lle piai
outlined in the Carlisle bill II outlin-
ing the only policy which seems to him
now possible to maintain the gold re-
serve. The message is lengthy and
clearly defines the presidents position
lie says: IAN emergency nov ap-
pears SO threatening that ] deem
it my duty to ask at the
hands of the legislative branch OF
government such prompt and effectiNe
action as will restore confidence In our
financial soundness n avert business
disaster and universal distress among
our people. Whatever may be the mef-
its of the plan outlined in the annual
message as a remedy for ills then eX-
listing and as n safeguard against the
depletion of tle.yold reserve then in the
treasury, l am.now convinced that our
present advanced stage of financial
perpleNity necessitates additional OF
different legislation.
The real trouble which confronts us
consists of lack of confidence, wide
spread and constantly increasing. In
the ability or disposition of the gov
eminent to pay its obligations In gold.
This lack of confidence grows to some
extent out of pnlpable and apparent
embarrassment attending the efforts OF
the government under existing laws
to procure gold and to a great extent
out of the inlpossibility of either keep
ing it in the treasury or canceling OBJ
legations by its expenditure after 1t Is
obtained. The only way left open for
the government to procure gold is by
issue and sale of its bonds. Only bonds
thaf .ar, he iCSua1 ware authorized
nearly twenty-five years ago and are
not we'll calculated to meet u present
needs. Among other disadvantages
they are made payable in coin instead
of specifically in gold. which under ex-
listing Conditions detracts largely and
IN an increased ratio from their deslra-
billy as Investments. 1t is by no
means certain that bonds of this de-
scription can much longer be disposed
of at a price creditable to the financial
character of Il government. The
most dangerous and irritating feature
Of the situation. however. remains to
De mentioned. 1t is found In the means
by which the treasury is dispossessed
Of gold thus obtained without cancel
Ing a single government obligation 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
$500, 600. 900 of currency notes of the
government for which gold may be de-
manded; and c%uriously enough the law
requires that when presented and in
fact redeemed and paid in gold they
shall be reissued. These same notes may
do duty many times in drawing gold
from the treasury. More than $500, 000,-
300 in these notes have already been
redeemed in gold and Notwithstanding
such redemption there are more still
outstanding. On the 18th day OF jan
uary. 1894, IL bonded interest bearing
debt had been increased 800. DOC, 900 for
the purpose of obtaining gold to replen-
ish the coin reserve. Two issues were
made amounting to $50, 000, 900 each, n
IN January and the other in November.
AS a result of the first issue there was
realized something more than SOS, 00O,-
100 in gold. Between that issue II the
succeeding one in November, compris-
ing a period of about ten months,
nearly S103, 900, 900 of gold were drawn
from the treasury. This made a second
issue necessary and upon hat more
than $50, 900, 900 of gold was
again realized. Between the date
Of his second issue and the
present time, covering a period of only
about two months, more than $50, 000, 900
dollars in gold have been drawn from
the treasury. These large sums of gold
were expended without any cancelia-
ton of government obligations or in
any permanent way benefiting our peo-
pie or improving our pecuniary stu
alton.
The financial events of the past year
suggest facts n conditions which
should certainly arrest attention. More
than $172, 000, 900 in gold have
been drawn out of the treasury during
the ear for the purpose of shipment
abroad or boarding at home. While
nearly s1O3, 00O. 900 of this amount were
drawn out during the first ten months
of the year. a%ggregating more than
two thirds of that amount, about $780,
600. 900, was drawn out during the fol
lowing two months, thus Indicating a
marked acceleration of the depicting
process with the lapse OF time. The
obligations upon which his gold has
been withdrawn from the treasury are
still outstanding and are available for
repeating the exhausting operation
at shorter intervals as II perplexities
accumulate. Conditions are certainly
s~upervening tending to make bonds
which may be issued to replenish our
gold less useful for that purpose. An
adequate gold reserve Is in all circum-
stances absolutely essential to the up
holding of our public credit and to the
maintenance of our high national char
acter. Our gold reserve has again
reached such a stage of diminution as
to require it's speedy reinforcement. Ag-
CARNATIONS that must inevitably follow
the present conditions and methods will
certainly lead to misfortune and loss
not only to our national credit and pros
perity and financial enterprise. but to
those of our people who seek employ
those whose only capital is their daily
labor. 1t will hardly do to say that a
simple increase Of revenue will cure u
troubles. The apprehension o exist
ing and constantly increasing as to our
financial ability does not rest upon the
calculation OF II evenue The time
has passed when the eyes of investors
abroad and Il people at home were
fixed upon the revenues of the govern
ment. Changed conditions have at
tracted their attention to the gold of
the government. There need be no fear
that we cannot pay our current x
penses with such money as we have
There is now in the treasury a comfort
able surplus of more than s63. 900, 900, but
1t Is not in gold and therefore does
not meet our difficulty. Our differences
cf opinion concerning the extent to
which c,lver ought to b. coined or used
In our currency should not Interfere
with the counsels Of those who's duty
1t is to rectify the evil now apparent in
u financial situation.
Whatever ideas may be insisted upon
as to silver or bimetallism. a proper So
luton OF the question now pressing
upon us requires the recognition of
gold as well as silver and a concession
of Its Importance. r%ightfully or wrong
fully acquired, as the basis of national
credit, a necessity In the honorable dis
charge Of our obligations payable In
gold. and a badge of solvency. I do
not understand that the real friends oil
silver desire the condition thai might
follow inaction or neglect to appreciate
the meaning of the present exigency il
1t should result in entire Punishment of
OnV3 rrNv IL, H.. ~ E---LLI4eaE7