The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-12-04

strHcted as 10 secure their safe and
conservative control and management
But there might not be the necessity
for such addition to their currency by
new issues OF bank circulation as a
first glance is indicated. II we should
be relieved from maintaining z gold re-
serve under conditions uhat constitute
II the barometer OF our sofyeney, an'1
IL our treasury should no longer be the
foolish purveyor of gold to HationE
abroad or for speculation and boarding
by our citizens at home, 1 should ex-
peot to see gold resume its natural aD1
normal function IN the business afaTzf
of the country and cease TO De an Object
attacking the rtirn5d faith Of our people
and exciting their sensitive HaaSa--a-
tons. | do not out take the fact that
the cancellation Of the treasury Noes
issued under the silver purchasing a'ot
of 1890 would leave the treasury notes
m the actual ownership OF s1filclSnt
silver including seignorage TO com
nearly s17S. 600 in standard dollars.
This is worthy OF consideration whether
this might not from time 90 time be-
come converted into dollars or fraction
al coin and slowly put into circulation
as, in the Judgment OF the secretary OF
the treasury the necessity OF the coun-
try should require
DEPTH Is DANGEROUS.
Whatever is attempted should be en-
tered upon fully apreciating the fast
than by careless easy descent we have
reached dangerous depth, and that
our ascent will not be accomplished
without laborous toll and struggle. we
shall be wise if we realize that we are
financially ill, and that our restoration
to health may require heroic treat
ment.
In the present stage Of our difficulty
it is not easy TO understand how the
amount of our revenue receipts directly
affect it. The important question Is
not the quantity of money received IN
revenue payments, but the kind OF
money we maintain and our ability TO
continue in sound financial conditions.
We are considering the government
holding of gold as related to the sound
ness of our money and as affecting
our national credit and monetary
strength. If our gold reserve had new
er been impaired, if no bonds had been
issued to replenish it, if there had never
been no fear and timidity concerning
our ability to continue gold payment;
if any part of our revenues were now
paid in gold and if we could look 10
our gold receipts as a means Of main
tanning reserve the amount of our rev.
enues would be an inf1uen tial factor in
the problem. But unfortunately all
the circumstances that might lend
weight to this consideration are entire
ly lacking. In our present predica-
ment no gold is received by the govern
ment in payment of revenue charges
nor would there be if the revenues were
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 10 the
government in paying its current or
/ binary expenses and its quantity in
the government possession does not
in the least contribute toward giving
US that kind of safe financial standing
or condition which is built on gold alone
If it is said that their is another way.
if held by the government, which can
be used TO obtain gold to our reserve,
the answer is easy: The people draw
gold from the treasury on demand up
on the United States Notes and Treas
ury Notes, but the proposition that the
treasury can on demand draw gold
from the people would be regarded in
these days with wonder and amuse-
ment And even if this could be done.
there is nothing to prevent that thus
parting with their gold from regaining
it by the next day or next hour by the
presentation of the notes they received
in exchange for it.
PREMIUM IS DANGEROUS.
The secretary of the treasury might
use such notes taken from a surplus rev
enue 10 buy gold in the market. OF
course he could not do this without
paying a premium. Private holders
of gold, unlike the government having
no parity 10 maintain would not be re-
strained from making the best bargain
possible when they furnished gold to
the treasury; but the moment the Sec
rotary of the Treasury bought gold on
any terms above par he would establish
a general and universal premium upon
it, thus breaking down the parity be-
tween gold and silver which the gov
+ eminent is pledged to maintain. and
opening the way TO new and serious
/ complications.
( In the meantime the premium would
not remain stationary and the absurd
/ spectacle might be presented of a deal
/ er selling gold TO the government and
| with United States notes or Treasury
notes in his hands Immediately clam
/ oring for its return and a resale at
/ higher premium. Ii may be claimed
/ that a large revenue and reduced re-
! ceipts might favOrably affect the sit
/ uatien under discussion by affording
/ an opportunity affecting these notes in
the treasury when received. and thus
preventing their presentation for gold.
/ Such retention to the useful ought to
/ be at least msasurably paramount and
/ is precisely what is prohibited 50 far
as United States notes are concerned
] - l., - -.
/ future retirement That statute in so
many words provides that these notes
I when received into the treasury and
! belonging o the United States shall be
paid out again and kept in circula-
ton II Will moreover be readily
! seen that the government could not re-
4 fuse to pay out United States notes and
] treasury notes in current transactions
/ when demanded and insist on paying
| out silver alone and still maintain the
, parity between that metal and the cur
rency representing gold. Besides the
/ accumulation in the treasury OF cur
/ rency of any kind exactsd from the
/ people through taxation Is justly re-
I g3rded as an evil and IL cannot pro-
/ coed far without vigorous protest
( against an unjustifiabIe retention OF
money from the business OF the coua-
try and denunciation Of scheme OF
| taxation which proves Itself 10 be IN
! just when Il takes from the earnings
| and income of the citizen money 50
! much in excess Of the needs OF the gov
eminent support that large sums can be
| gathered and kept In The treasury
Such a condition Is a peril in time OF
| surplus revenue led by the government
Ito restore currency 20 the people by the
! purchase Of its unmstured bonds a. a
large premium and by a large Increase