Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1895-12-14

az least measurably permanent and this
is precisely what Is prohibited, so far
United tSates notes are concerned,
by the law of 1878, f~orbidding their fur
Their 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 n kept In circula-
ton Ii will moreover be readily seen
that the government could not refuse
to pay out United States notes n
notes in current transactions
demanded and insist on paying
out silver alone and still maintain the
parity between thai metal n the cur
rency representing gold. Besides. the
accumulation in the treasury OF cur
rency of any kind exacted from the peo-
pie through taxation is justly regarded
as an evil. and IL cannot proceed far
without vigorous protest against an I'M
justifable detention of money from the
OF the country and a denunci-
alton of a scheme of taxation which
itself 10 be unjust, when it takes
from the earnings and income of the
citizen none so much In excess OF the
needs of the government support that
large sums can be gathered and KEEP
in the treasury. Such a condition mas
heretofore in times of surplus revenue
led the government TO restore currency
to the people by the purchase Of its
unmatured bonds at a large premium
and by a large increase of its deposits
in national banks and we easily re-
member that the abuse Of treasury ac-
emulation has furnished a most per-
suasive argument in favor of legisla-
ton radically reducing our tariff.
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 u struggles to main
tain our gold reserve there eve has
been any apprehension as to II ready
ability to pay Il 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 esti-
mate Of our solvency. OF course the
general state OF our funds exclusive of
gold was entirely immaterial to the for
eign creditor and investor. His interest
could only be paid in gold and his only
concern was ability 70 keep on hand
that kin Of money.
on July /, 1898, more than n year and
a half before the first bonds were is
sued to replenish the gold reserve, there
was a net balance in the treasury ex-
elusive of such reserve Of less than
S13, 600, 900; but the gold reserve amount
ed TO more than STA. 600, 600. which was
the quieting feature of the situation. 1t
was when the stock of gold began rap
idly to fall that fright supervened and
our securities held abroad We're re-
turned for sale, and debts owed abroad
We're pressed for payment. In the mean
time extensive shipments Of gold and
other unfavorable indications caused
restlessness and fright among u peo-
pie at home. Thereupon the general
state of our funds exclusive Of gold he
came also immaterial 10 them and they,
too, drew gold from the treasury for
boarding against all contingencies.
This is plainly shown by the large in
in the proportion of gold with
drawn which was retained by our own
people as time and threatening Incl
dents progressed. During the fiscal
year ending June 80, 1894. nearly $751;
600, 600 in gold was withdrawn from the
treasury and about S77, 000. 900 was sent
abroad, while during the fiscal year
ending June so. 1895, over SLY, 600, 600
was drawn out. Of which only about
sec, 600. 600 was shipped, leaving the large
balance of such Withdrawals 10 be ac-
counted for by domestic boarding.
Refers to Free Silver.
While | have endeaVored to make a plain
statement of the disturbed condition Of
our currency and the present dangers
menacing our prosperity and TO suggest a
way which cad TO a safer financial sys-
TEN, ! have constantly had I'm mind the
fact that many of my countrymen whose
sincerity / do not doub insist that the
cure for the ills now threatening us may
be ound in the single and simple remedy
of the rree coinage or silver. They con-
tend that our minis will be at once thrown
open 10 the free, unlimited and independ-
coinage of both gold and silver dol
lars of full legal tender quality, regardless
of the action of any other government,
and in full view of the fact that the ratio
between the metals which they suggest
calls for 100 cents worth of gold in the
gold dollar at the present standard and
only 90 cents in intrinsic value worth OF
in the silver dollar. Were there in
finitely stronger reasons than can be adj
duceu for hoping that such action would
secure for us a bimetallic currency NOV
ing on lines Of parity. an experiment so
and hazardous as that proposed
might well stagger those who believe that
is an imperative condition of
money. No government, no human
anntriNa n0p nr art nf leRiSlafinn has aNar
been able to hold the two metals togeth-
er in free coinage at n ratio appreciably
from that which Is established
the markets of the world.
Those who believe that our Independent
free coinage of silver at an artificial ratio
with gold at 1G to /, would restore the
parity between the metals, and conse-
etwee the coins, ppo an UNI
supported n improbable theory to the
general belief and practice Of other ma
tions and to the teaching of the wisest
and economists Of the world,
both In the past and present and. what Is
far more conclusive, they run counter TO
our own actual experiences. Twice In our
history our lawmakers
10 establish a bimetallic currency by free
coinage upon a ration which varied from
the actual relative values OF the two met
ais not more than 3 per cent. In both
cases, Notwithstanding greater difficult
and cost of transportation than now
exist, the coin whose intrinsic worth was
undervalued in the ratio. gradually and
surely disappeared from our circulation
and went TO other countries where It's
real value was better ~ecognized. Acts OF
congress were impotent TO create equal
ity where natural causes decreed even a
Inequality. Twice In our recent his
tory we have signally failed to raise by
legislation the value OF silver. Under an
act OF congress passed In 1873 the govern
ment was required Tor more than twelve
s24,ooo,oOo the pur-
OF silver bullion for coinage.
The Act Of 1900.
The act of July IA, 1890. I'm a still holder
effort, increased the amount OF silver the
government vas compelled to purchase
and forced IL to become the buyer an
OF $4,000, 900 ounces. or prac-
the entire product OF our mines.
potn Iuws sffvcr rapidly and
declined In value. The proph-
ecy and the expressed hope and expec-
tation Of those In congress who led In
the passage Of the asst mentioned act
that II would r~e-establish and maintain
the former parity between the two met
ais are still fresh In our memory.
In the light Of those experiences
accord with the experiences Of
other nations there Is certainly no &C.
cure ground for the belief than an act
Of congress could now bridge an In
of so per cen between gold and
silver at our present ratio. nor IN there
a. $50. x--lltG4.. AL.s 80 $500