The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1895-12-06
NOT A QUESTION OF REVENUE
The Amount of Receipts Does Not Affect
the Present Difficulty.

The Amount of Receipts Does Not Affect
the Present Difficulty.
In the present stage of our difficult it
is not easy to understand how the amount
of our revenue receipts directly affects it.
The important question is not the guam
tlty OF money received in revenue pay
ments, but the kind of money we main
tain and our ability to continue in sound
financial condition. We are considering
the government holdings of gold as re-
lated to the soundness of our money and
as affecting our national credit and none
tary strength.
If our gold reserve had never been i'm
paired, or if no bonds had ever been issued
to replenish it; if there had been no fear
and timidity concerning our ability to
continue gold payments; if any part of
our revenues were not paid in gold and if
we could look to our gold receipts as
mean of maintaining safe reserve, the
amount of our revenues would be an in
fuential factor in the problem. But I'M
fortunately all the circumstances that
might lend weight to this consideration
are entirely lacking. In our present pre-
dicament no gold is received by the gov
eminent in payment of revenue charges,
nor would there be
q.
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 mo lev
are only useful to the government in pay
ing its current ordinary expenses, and its
quantity in government possession does
not in the least contribute toward giving
us that kind Of safe financial condition
which is built on gold alone If il is said
that these notes if held by the govern nent
can be used to obtain gold for our reserve.
the answer is easy. The people draw gold
from the treasury on demand upon United
States notes and treasury noGes, but the
proposition that the treasury can on de-
mand draw gold from the people upon
them, would De regarded III these days
wi, b wonder and amusement. And even
if this could be done there is nothing to
prevent those thus parting with their
gold from re gaining it the next day or the
next hour by the prese tation of the notes
they received in exchange for it.
An Erroneous Idea.
1t is possible that the suggestion of in
crea ed revenue as a remedy for the diff
culties we are considering may have orig
mated in an intimation or distinct allega-
UlOn UndU Une DOlluS WHICH nave DSGD Is
sued ostensibly to replenish our gold re-
serve wer. really issued to supply INSULT
cient revenue. Nothing can be further
from the truth. Bonds were issued to
obtain gold for the maintenance of our
national credit AS has been shown, the
gold thus obtained has been drawn
again from the treasury upon United
States notes and treasury notes This
operation would have been promptly pre-.
vented if possib e; but those notes, having
thus been passed &c the treasury, they be.
came the III oney of the government, like
any other O binary government funds,
and there was nothing to do but to use
them in paying government expense when
needed Az no time when bonds have
been issued has there been any considera-
ton of the question of paying the ex
! penses of the government with their pro
ceeds.