The record-union., 1895-12-27
THE GOVERNMENT ON A SILVER
RASIS,

II is very doubtful If many readers OF
the Presidents message observed care
fully or read with sufficient care to per-
ceiye the clear statement that the Gov
ernment of the United States is doing
business on silver basis. A long State
document like a Presidents message Is
read hastily. There are but few Amer
lean citizens who lay it aside for sub
sequent reading. Subsequent ed1-
toriaI or other discussion discloSes to
them the true meaning of the docu-
ment.
This must be the case concerning the
statements of the President in relation
to silver, since but little attention is
attracted to the astonishing statement
that the Government Of the United
States is doing business wholly upon
silver
President Cleveland said that in the
present stage of our difficulty. it is not
easy to understand how the amount OF
our revenue receipts directly affects It.
He says that If our gold reserve had
never been impaired, or If no bonds
had ever been issued to replenish II,
if there had been no fear and timidity
concerning our ability to continue gold
payment, if any part Of our revenues
were not paid in gold, and if we could
look to our gold receipts as means OF
maintaining a safe reserve. the amount
of gold receipts would be an influential
factor in the problem. From this point
we quote his words:
But unfortunately, all the circum-
stances which might lend weight to this
consideration are entirely lacking in
our present predicament. No gold is
received by the Government in pay
ment of revenue charges, nor would
there be If the revenues were increased.
The receipts of the treasury when not in
silver certificates, consists Of United
States notes and treasury notes issued
for silver purposes. These forms OF
money are only useful TO the Govern
ment in paying its current ordinary ex-
penses, and its quantity in Government
possession does not in the least contrib
ute toward giving US tokens Of safe
financial standing, or condition which
is built on gold alone"
The foregoing is perfectly clear dec
laration that the Government receives
no gold whatever In payment Of revenue
charges. The receipts Of the treasury,
when not in silver, consists Of United
States or treasury notes issued for sill
yer purposes. The President continues
that this money Is useful only in paying
1t out again. The Government collects
over $500, 900 per year for revenue.
Here is a statement Of the President Of
the United States that it does not re-
ceive one dollar in gold.
The Government Is therefore doing
business on a silver basis. IntrinsicaIly.
when it receives a silver dollar, it. re-
ceives but 81 cents. but as it is pledged
to maintain a parity OF 16 TO i between
silver and gold, it is doing the Govern
ment business wholly on silver that its
citizens may force upon the country a
gold standard. In this aspect of the
case, the Government of the United
States is maintaining an artificial rela-
ton, or ratio, between the value of the
two metals The creditor classes and
the creditor nations Of the world have
decided that gold shall be the only
money. Adhering to the single stand
ard, President Cleveland has deter
mined that the treasury issues Of the
United States, IN the amount of over
$500, 600, 900, shall be retired. The only
way he can get money for that purpose
is by issuing bonds. No gold is paid
to the Government for custom duties or
internal revenue, so that the sale OF
bonds is the only way by which the
Government gets any gold at all.
The Republican Congress has an i'm
mense problem before it. II it attempts
to put the Government on gold basis,
If by increasing the tariff rate it in
creases revenue, it only increases the
receipts in silver. The gold reserve
continues to go out. and, as the Presi-
dent has clearly pointed out, il canno;
fill it from the income due to the re-
ceipt OF customs duties or internal reve-
nue. We are attempting an experiment
which on its face presents the most stu
pendous idiocy of which any nation has