The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-01-29

at home were fixed on the revenues of the
government. Changed conditions have
attracted their attention to the gold OF
the government. There need be no fear
that we cannot pay our current expenses
with such money as we have. There IS
now in the treasury Il comfortable sur
plus of more than sixty-three millions of
dollarse, but 1t is not in gold, and, there
fore. does not meet our difficulty.
Consider the National Credit.
l cannot see that differences of opinion
concernig the extent to which silver ought
TO be coined or used in our currency
should interfere with the counsel of those
whose duty 1t is to rectify evils now ap-
parent in our financial situation They
have to consider the question of national
credit and the consequences that will
follow from its collapse. Whatever ideas
may be insisted upon as to silver or bi-
metallism, proper solution of the ques-
ton now pressing upon us only requires
recognition of gold as well as silver
and Il concession of its Importance, right
fully or wrongfuly acquired, as basis
OF national credit, necessity in the hon
orable discharge of our obligation pay
able in bold or Il bill OF solvency. i do not
understand that the real friends of silver
desire Il condition that might follow mac
ton or neglect to appreciate the meaning
of the present exigency II 1t should re-
suit in the entire Punishment of gold from
our financial and currency arrangements.
Besides the treasury notes, which GER
tainly should be paid In gold, amounting
to nearly five hundred millions OF dollars,
there will fall due in 1904 one hundred mil
lions of bonds issued during the last year
for which we have received gold, and in
1907 nearly six hundred millions of four
per cent. bonds issued in 1871 Shall the
payment of these obligations in gold be
repudiated? If they are to be paid in such
II manner as the preservation of our ma
tional honor and national solvency de-
I'm
peril our ability to supply ourselves with
gold for that purpose.
Pleads for Gold Basis.
While ] am not unfriendly to silver, and
while | desire to see 1t recognized to such
an extent as Is consistent with financial
honor and credit, | am not willing to see
gold entirely banished from our currency
and finances. To avert such conse-
quence | believe thorough and radical
remedial legislation should be promptly
passed. |, therefore, beg the congress to
give the subject immediate attention.
In my opinion the secretary of the treas
ury should be authorized to issue bonds
of the government, for the purpose OF pro-
curing and maintaining a sufficient gold
reserve and the redemption and cancella-
ton of the United States legal tender
notes and the treasury notes issued for
the purchase of silver under the law of
July n, 1890 We should be relieved from
the humilatng process of issuing bonds
to procure gold to be repeatedly drawn
out of these regulations for purposes
not related TO the benefit of our govern
ment of our people. The principal and
interest of these bonds should be payable
on their faces in gold, because they should
be sold only for gold or its representative,
and because there would now probably be
difficulty in favorably disposing of bonds
not containing this stipulation.
Suggests New Bond Issue.
I suggest that the bonds be issued in
denominations of twenty and fifty dol
lars and their multipies, and that they
bear interest at u ratio not exceeding per
cent. per annum. | do not see why they
should not be payable nifty years from
their date. We of the present generation
have large amounts to pay If we meet
our obligations and long bonds are most
saleable. The secretary of the treasury
might well be permitted at his discretion
to receive on the sale of bonds the legal
tender and treasury notes to be redeemed
and. of course, when they are thus re-
tired or redeemed in gold, they should be
cancelled.
These bonds, under existing laws. are to
be deposited by national banks as secur-
ity for circulation, and such banks should
be allowed to issue circulation UP to the
face value on these or any bonds so de-
posted except bonds outstanding bear
ing only two per cent. and which sell at
market at less than par. National banks
should not be allowed to take out circu-
lating notes of less denomination than
ten dollars, and when such as are now
outstanding reach the treasury except
for redemption and retirement, they
should be cancelled and notes of the de-
nomination of ten dollars and upwards is
sued in their stead. Silver certificates of
this denomination of ten dollars and up
wards should be replaced by certificates
of denominations under ten dollars.
Details Easily Adjustable.
AS a constant means for the mainten-
,fl hi 9 aNl1 to- ~
treasury, our duties on imports should be
paid in gold, allowing all other dues to
the gvernment TO be paid in any other
form of money. | believe all the provis-
ions / have suggested should be embodied
in our laws If We are to enjoy a com
plete reinstatement of sound financial
condition. They need not interfere with
any currency scheme providing for the
increase of the circulating medium
through the agency ofnational or state
banks, since they can easily be adjusted
to such scheme. Objection has been
made to the issuance of interest-bearing
obligations for the purpose of retiring the
non-interest bearing legal tender notes
In point of fact, however. these notes
have burdened us with n large load of in
terest, and II is still accommodating. The
aggregate interest on the original issue
of bonds. the proceeds of which gold con-
stituted the reserve for the payment of
these notes amounted to $40. .326. $50 on Jan
l,lSS5, and the annual charge for interest
Oh lnese DOuuS ana tflOSe ISSUED lOr the
same purpose during the last year will be
50, 10000 dating from Jan. ], 1895.
While the cancellation of these notes
would not relieve us from the obligations
already incurred on their account, these
figures are given by way of suggesting
that their existence has not been free
from interest charges and that the longer
they are outstanding, Judging from the
experience of the last year, the more en-
pensive they will become.
Credit Must BE Protected.
In conclusion desire to frankly confess
my reluctance to issuing more bonds in
present circumstances and with no better
results than have lately followed that
course, ! cannot, however, refrain from
adding to an assurance of my anxiety to
cooperate with the present congress to
any reasonable measure of relief, an eX-
preston of my determination to leave
nothing undone which furnishes a hope
for improving the situation or checking a
suspicion of our disnclination or dis
ability to meet with the strictest honor
every national obligation.
GROVER CLEVELAND.
Executive Mansion, Jan. 2S, 1895.
WHAT THEY THINK OF 1T.
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