The herald., 1895-12-04

gold Ms related co the sonndnrss of our
money ana as effcting our national
credit and mon stary strength. Ii our
gold reserve had never been i'm paired, or
II no bonds had ever been issued to re.
plenisb 1t, ii there had been II foar and
timidity concerning our ability to con-
uhue gold payments. IL auy part Of our
rryenu were not paid in gold, and il
we couli look to our gold receipts as u
means OF maintaining safe reserve, the
amodnt OF our revenues would be an in
tiuehtial factor In the problem, but un-
fortunately all the circumstances that
might lend weight to this consideration
ar entirely lacking. In our present pre-
dicament no gold Is received by the gov
eminent in payment OF revan ue CHARGES.
Nor would there be if the revenues we're
Increased. The receipts Of the treasury.
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 ex-
pensss, and its quantity or the govern
ments possession of IL does not in the
least contribute toward givin us tokens
OF safe financial standingg, q condition
which is built on gold alone. II it il said
that these notes. il held by the govern
n ent, can be used to obtain gold for our
reserve, she 'swer is easy. The people
draw gold from the treasury on demand
upon this United States, and treasury
notes, but the proposition that the treas.
upon them would be regarded in these
days with wonder, and even if this could
be done, thera is nothing TO prevent those
thus parting with their gold from reta n
ing it the next day Or the next hour by
the present,tion of notes they received in
treasury might use such note taken from
a surplu' revenue to buy gold in the
market. Of course he could not do this
without paying premium. Private
poldcrs OF gold. like the government, have
no parity to maintain, and would not be
estrained from making the hest bargain
possible when they furnished gold to tho
treasur but the moment The secretary
OF the treasury bought gold OH any terms
above par he would establish general
an universal premium upon 1t, thus
breaking the parity between gold and
silver which the government Is
pleugcd TO maintain, and opening the
way 10 new aId serious compl ications.
In the meantime the premium would
not remain stationary, and the absurd
spectacle might be presented OF dollar
selling gold to the government and With
United States notes Or treasury notes in
his hand i'm ediately clamoring for its
return anc q resale at higher premium.
1t NAV be Il lined that a large revenue
and red iIdant re eipts might iavorsblg.
affect the slt,atioh unuef discuss on by
affor1iug an opportunity OF reclaim in.
these notes in tae treasury when rec civ
ed, and thus preventing their presenta-
ton for gold. Such retention to be use
full ought To be at least measurabiy per-
manent. and this Is preeissly what is pro
hibitrd 81 far as United states notes are
concerned, by the law OF 1878 forbidding
their further retirement. That statute
In 81 MANY words provides that these
notes, when reneiveu into the treasury
and belonging to the United States, snail
''be nail out asain and kept in circula
ii n" 1t will moreover be readils ssci
that the governments could not refuse to
pay our United States notes and treasury
notes in current transactions when de-
mandsd, and insist on paying ont silver
a.one and still maintain the parity be-
tween that metal and the currency rep
resentins gold. Besides the accumuli.
ii in the treasury of 'urrcncy of tho
kind exacted from the people tt rough
taxation IL justly re ,ar!rd ,s an evil, and
it Canno. proceed fr without vigorous
protest against an uniustitiable retention
Of money from the business of the cum
try and q den1noiation of n scheme vi
wnen 1t takes fr I'm tho earnings and
income OF the citizen money 90 much in
excess OF the needs OF the government
support has large sums can be gathered
and kept in the treasury. Such a Condi-
tirn has heretofore in times OF surplus
revenue led the government IL restore
currency to the people by tEe purchasso
OF Its immature bombs at large premium
and BY a large increase of It's deposits in
national banks, and We easily remem Der
that ths abuse OF treasury accumulation
has furnished a most persuasive argu-
ment in favor of legislation radically re-
ducins our tariff. aYlrIl
Perhaps il is supposed that sufficient
revenue receipts woulI III sentimental
way improve the situation by inspiring
confidence in our solvency and allAyin
the fear OF pecuriary exhaustion, AMI
yst through all our strug les 20 maintain
our gold reserve there has never been any
apprehension as 30 our ready ability to
pay our way with sCcn money as we bad,
an the question whether nr not our cur
rent receipts NETS our expenses has mot
entered INTO the estimate of our sUlvency.
VI course the general state of our fund.-,
exclusive of god. was entirely immater-
iel to the foreign creditor and investor.
His interest could only be paid in gold,
and his only concern as our ability to
keep on hand that kind OF money. On
July l, 1893, more than year ana half
before the first bonds were issud to re-
plenlsh the gold reserve, there was a net
balance in the treasury, exclusive o! such
reserve, of less than SIS. 900. 900. but the
II,
coo. 900. 1t was when the stock of gold
BEGAN rapidly to fall that fright super
vened and our securities held abroad were
returned for sale, and debts owed abroad
were presented for payment. In the
meantime extensive shipments of COLA
and other unfavorable ind locations caused
restlessness and fright among our people
at home. fhereupon the state of our
funds. exclusive OF gold, become also i'm
material to them, and they too drew gold
from the treasury for boarding against
all contingencies. This is plainly
shown by the larss increase in the pro.
portion of gold withdrawn which was
retailed by our own penple at the time.
and threatening incidents progressed.
During the fiscal wear ending June 80,
1894, nearly $50, 600, 600 in gold was with
drawn from the treasury, and about ST.
fiscal year ending June 80, 1895. over
Sill, 000 600 was drawn out. OF which only
about $e6. 900 600 was shipped, leaving
the large balance OF sucn Withdrawals
to be accounted for by domestic hoard
ing.
GOLD WITHDRAWAL
Inasmuch as the withdrawal of our
gold has resulted largely from fright,
here is not hing apparent that will pre-
vent its continuance except such a change
in our financial methods as will reassure
the frightened and make the desire for
gold less intense. 1T is not clear how an
increase In revenue, unless it be in gold,
can satisfy those whose only anxiety to
gain gold from the governments store.
1t Gu mot. therefore, be safe to relv upon