Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-01-29
THE PRESIDENT
Continued from LIST page.)

more than two-thirds of that amount, be
ing about 500, o00,0 600, was drawn out
during the following two months, thus
indicating marked acceleration of the
depicting process with the lapse of time.
The obligations upon which this gold has
been drawn from the treasury are still
outstanding and are available for use in
repeating the exhausting operations with
shorter intervals as our pcrplexities acct
mulate. Conditions are certainly super
yening tending to make the bonds which
may be issued to rcplcnish our gold less
useful for that purpose.
An adequate gold reserve is in all circum-
stances absolutely essential to the uphold
ing of our public credit and to the main
tenancc of our high financial character.
Our gold reserve has again reached such
stage of diminution as to require its
speedy reinforcement.
The aggravations that must inevitably
follow present conditions and methods
will certainly lead to misfortune and loss
not only to our national credit and pros
perity and to financial enterprise, but to
those of our people who seek employment
as a means OF livelihood and those whose
only capital is their daily labor. The ap-
|
increasing as to our financial ability does
not rest upon IA calculation Of our revenue
The eyes Of investors abroad and our PEG
pie at home are now upon 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
comfortable surplus of more than SOB,
900 900, hut it is not in gold and there
fore does not meet our difficulty Besides
the treasury notes, which certainly should
be paid in gold, amounting to nearly
$500, 900, 900, there will fall due in 1904
500, 900, 600 of bonds issued during the
last year, for which we have received gold.
and in 1907 nearly $500, 000 900 of per
cent bonds issued in 1877.
Shall the payment Of these obligations in
gold be repudiatcd?
If they are to be paid in such Il manner
as the preservation of our national honor
and national solvency demands. we should
not destroy or even imperil our ability to
supply ourselves with gold for that plr-
pose. While / am not unfriendly to sill
yer, and while desire to see it recognized
to such an extent as is consistent with
financial safety and the preservation of
national honor and credit l am not will
ing to see gold entirely banished from our
currency and finances.
To avert such a consequence l believe
Thorough and radical remedial legislation
should be promptly passed. /, therefore,
beg Congress to give the subject I'M
mediate attention. In my opinion the
secretary of the treasury should be au-
ii orzed to issue bonds of the Cover nment
| for the purpose of procuring and maintain
| ing a sufficient gold reserve and the re
demption and cancellation of the United
| States legal tender notes and the treasury
notes issued for the purchase OF silver I'M
der the law Of July II, 1890.
We should be relieved from the humiliat-
ing process of issuing bonds to procure
gold to be immediately and repeatedly
drawn out on these obligations for pur-
poses not related to the benefit of our
government or of our people.
The principal and interest of these
bonds should be payable on their face in
gold. because they should be sold only for
gold or it's representative, and because
there would now probably be difficulty in
fayorably dsposing of bonds not contain
ing this stipulation.
| suggest that the bonds be issued in
denominations of $50 and $50 and thei1
multiples and that they bear interest at
IA rate not exceeding 3 per cent, per an
num- ! do not see why they should not
be payable so years from their date. We
of the present generation have large
amounts to pay if we meet our obligations,
and long bonds arc 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 retired or redeemed in
gold they should be cancelled These
bonds under existing laws could be de
posted by national banks as security for
circulation, and such banks should be
allowed to issue circulation up to the
face value of these or any other notes SO
deposited except bonds outstanding bear
ing only per cent. interest and which
sell in the market at less than par. Ma
tional banks should not be allowed tC
take out circulating notes of a less de
nomination than SO, and such as are
now outstanding reach the treasury ex-
cept for redemption and retirement they
should be cancelled and notes of the de
nomination of $40 and upward issued in
their stead. Silver certificates of the de
nomination OF SIO anu upNdiu sHouiu
be replaced by certificates of denomi-
nations under $40.
AS q constant means for the mainte
nance of reasonable supply of gold in the
treasury our duties on imports should be
paid in gold allowing all other dues to
the government to be paid in any othcl
form of money.
believe all the provisions l have sug
gested should be embodied in our laws il
we are to enjoy complete reinstatement
of sound financial condition.
In conclusion desire to frankly confess
my reluctance to issuing more bonds II
the present circumstances and with M
better results that have lately followed
that course cannot, however, refrain
from adding to an assurance of my anxiety
to cooperate with the present Congress IL
any reasonable measure of relief and ex
preston of my determination to leave
nothing undone which furnishes hops
for improving the situation or checking
suspicion of our disintegration or disabil
ity to meet with the strictest honor ever.
national obligation.
Grover Cleveland.