Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1895-01-31
WRITES ON FINANCE
SPECIAL MESSAGE is SENT TO
CONGRESS.
inc President belle yes the Real Cause OF
the TROUBLE IL In the Inability OF Uncle
Sam to Pay His Debts In Gold Lay
Aside Party Differences. ~



Washington. Jan. 2s.-The president
has sent to congress a special message
on finances. 1t begins by saying: my
last annual message commended to
congress the consideration Of national
finances and Endorsed a currency plan
which seems to furnish protection
against the impending danger. 1t was
not approved by congress-. Whether
this was wise or not, GER
tainly additional or different
legislation Is now required. 1t
is hardly disputed that the present pre-
dicament Is very threatening and one
which requires an honest attempt to
relieve the situation untrammeled by
partizan prejudice and a steadfast de-
termination to resist the temptation to
accomplish party advantage.
Cause of Trouble and Remedy.
1.-The real trouble consists in a wide
spread lack Of confidence Of the inabil-
ity Of the government to pay it's obliga-
tons in gold. The only way left open
to the government for procuring gold is
by the issue OF bonds. The only bonds
that can be issued were authorized
nearly twenty-five years ago and are
not calculated to meet the present
needs, being payable in coin, instead of
specifically in gold. The most danger
Gus feature Of the situation is found in
spoiled Of gold without cancelling a
single government obligation and sole
ly for the benefit OF those shipping or
boarding it. We have $500, 0O0, 900 of
government notes for which gold may
be demanded. The law requires that
after redemption these be re-issued, SO
they do duty many times in drawing
treasury gold.
Bonded Debt Increase.
'In the past year the bonded debt was
Increased 800, 900, 900 for the purpose OF
obtaining gold. The proceeds Of these
bond issues were entirely consumed in
the redemption Of notes since re-issued.
without improving the pecuniary stu
alton. More than $172, 900, 900 OF gold
were drawn from the treasury the past
veal for shipment, or boarded, Of which
&c., oO, 900 were taken during the last
two months. showing a marked accel-
GRAFTON. This condition is certainly
tending to make an issue Of bonds to
~replenish our gold less useful for the
purpose. An adequate gold reserve Is
absolutely essential to the upholding
Of our public credit. 1t will hardly do
to say that a simple increase Of revenue
will cure the trouble.
Differences on silver.
There need be no fear that we cannot
pay current expenses. The treasury
has a surplus OF over s63, 000, 600. but 1T
is not gold, and, therefore, does not
meet the difficulty. 1 nno see why
the differences of opinion concerning
the extent to which silver ought to be
coined. or used in currency, should in
terfere with the %counsels OF those
whose duty 1t Is to rectify the evils ap-
parent in our financial situation. They
have considered the question of ma
tional credit and the consequences Of
its collapse.
The Pro ssing Question.
eth question pressing us only re-
quires the recognition Of gold as well as
silver n the concession Of Its import
ance, rightfully or ~wrongfully acquired,
as the basis of national credit, is a ne
cessity in the honorable discharge Of
obligations payable in gold and the
badge of solvency. / do not UNDER
stand the real friend of silver to desire
a condition that might follow The fall
ure to appreciate the meaning Of the
present exigency II 1t should result in
the entire Punishment OF gold from our
currency. Besides treasury notes,
which should certainly be paid in gold,
amounting to nearly $500, 900. 900, there
will fall due in 1904 800, 900, 900 in bonds
issued during the past year, and in 1907
nearly 5000. O00, 900 OF 4 per cents issued
in 1877. Shall the payment OF these
obligations in gold be repudiated? II
they are to be paid in this manner the
preservation of national honor and SOL
vency demand that We should not de-
stroy or imperil our ability to supply
ourselves with gold for this purpose.
Not Unfricndly to Silver.
while I am not u~nfriendly to silver.
and while I desire to see 1t recognized
to an extent consistent with h finan-
cial safety and preservation OF national
honor IN credit, I am not willing to see
gold entirely banished from our curren-
cy. To avert such consequences I believe
radical remedial legislation should be
promptly passed. / therefore beg IN
gress to give the subject immediate
attention"
The Issue OF Bonds.
The message recommends that the
secretary OF the treasury be authorized
to issue enough fifty year gold bonds at
a rate not higher than 3 per cent, to re-
deem and cancel United States legal
tender notes issued for the purchase of
silver under the law Of July Ia. 1890, in
denominations of $50 and $50 and their
multiples, the secretary, In his dfScre-
ton, to be permitted to receive for
such bonds for legal tender and treas
ury notes to be retired and cancelled.
National Bank Notes.
Under the existing laws national
banks couiu aeposlt these bonds as Sc
curities for circulation and should be
allowed to issue circulation to the face
value OF these. or any other bonds, ex-
cept those bearing only 2 per cent. In
terest, which sell at less than par. Ma
tional banks should % be allowed to
issue notes Of less denomination than
$40, and when such smaller notes reach
the treasury they should be cancelled
and replaced by those OF SO n up
wards. Silver certificates Of SO and
upwards should be replaced by smaller
denominations. As a constant means Of
maintaining the supply OF gold, duties
on imports should be paid In gold"
In closing the president expresses q
determination to leave nothing undone
for improving the situation, OF check
ing the suspicion to allow disinclina-
ton or disability to meet with the
strictest honor every national obliga-
ton.