The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-12-04

been Issued ostensibly to replenish our
gold reserve We're really issued to sup
! ply insufficient 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 trea-
sury upon United Stntes notes and
treasury notes. This operation would
| have been promptly prevented, posi-
| bly,, but these notes having thus been
passed to the treasury, they became the
| money of the Government, like any
other ordinary government funds, and
| there was nothing to do but to use
them In paying the expenses of the gov
eminent when needed. AT no time hen
bonds have been issued has there been
| any consideration of the question of
paying the expense of government with
their proceeds There was no necessity
| to consider that question. At the time
of each. bond Issue we had a safe sur
plus In the treasury for ordinary ope-
rations, exclusive Of the gold I'm our
reserve in February, 1894, when the
| first issue of bonds was made
Such surplus amounted to over 3d.
0U0,0O0; In November, when the second
| issue was made, 1t amounted to more
than Si2,000,000, and in February, 1896,
when bonds for the third year We're
than slo,000.0o0. 1t now amounts to
| 49,, 0T2, 42o.30.
Besides all this the Secretary Of the
Treasury had no authority whatever
to issue bonds to increase the ordinary
| revenues or pay current expenses
] cannot but think there has been
some confusion of ideas regarding the
effects of the issue of bonds and the
results of the withdrawal of gold.
1t was the latter process and not the
former that by substituting in the tren-
sury United States notes and treasury
notes for gold, increased by their
| amount the money which was in the
first instance subject to ordinary gov
eminent expenditure.
! Although the law compelling an in
creased purchase of silver by the Gov
| eminent was passed on the 14th day
of July, 1890, Withdrawals of gold from
the treasury upon the notes given in
payment on such purchases did not be-
gin until October 1891. Immediately
following that date the Withdrawals
| upon both these notes and United States
notes increased very largely, and have
continued to such an extent that since
| the passage of that law there has been
more than, thirteen times as much
| gold taken out of the treasury upon
| United States notes and treasury notes
| issued for silver purchases as was thus
| withdrawn during the eleven and a
half years Immediately prior thereto
and after the 1st day of January. when
specie payments were resumed.
1t is neither unfair nor unjust to
| charge n large share of our present
| financial perplexities and dangers to
| the operation of the laws of 1878 and
| 1890. compelling the purchase of silver
by the government, which not only fur
| nished q new treasury obligation upon
which it's gold could be withdrawn,
but so increased the fear of an over
whelming flood of silver and a forced
descent TO silver payments that even
the repeal of these laws did not entire
| ly cure the evils of their existence,
While / have endeavored to make q
plain statement of the disordered con-
dition of our currency and the present
| dangers menucing our prosperity, and
| to suggest way which tends to Il
| safer financial system, have con-
Istantly had in mind the fact that many
| of my countrymen, whose sincerity l
do not doubt insist that the cure for the
in the single and simSle remedy for thu
| free connge of silver. They contend
that our minis shall be at once thrown
open 10 the free. unlimited, and in
| dependent coinage of both gold and
silver dollars of the full legal tender
quality. regardless OF the action of any
other government, and In full view of
the fact that the ratio between the
metals which they suggest calls for
one hundred cents worth of gold i'm
the gold dollar of the present standard,
ana only fifty cents In intrinsic worth
of silver I'm the silver dollar.
Were there infinitely stronger reasons
than can be adduced for hoping that
such action would secure for MS n BIZ
metallic currency moving on lines of
parity. an experiment so novel and
hazardous as that proposed might we'll
istagger those who believe that stability
| is an imperative condition of sound
money.
No Government, no human contri-
vance or act of legislation has ever
been able to hold the two metals to-
gether in free coinage at the ratio APP
prcciably different from that which is
established in the markets of the world
Those who believe that our independ-
ent free coinage of silver at an artif-
cial ratio with gold of l6 to |, would
restore the parity between the metals,
and consequently between the coins,
loppose an unsupported and improbable
theory TO the general belief and prac-
tice of other nations, and to the teach
ing of the wisest statesmen and econo-
mists OF the world, both in the past
and present and what is far more con-
elusive they run counter to our own
actual eXpediencics.
Twice in our early history our law
makers in attempting to establish n
bimetallic currency undertook free
coinage upon a ratio which accidentally
varied from the actual relative values
of the two metals not more than three
per cent. In both cases, notwithstand-
ing greater difficulties and cost OF
transportation than now exist. the
coins whose intrinsic worth was under
lao q