The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1895-02-01


gold and a badge OF solvency. / do not
understand that the real friends of silver
desire a cond. tion that might follow inac-
of the present eXigency, If II should result
in the entire Punishment OF gold from our
financial and currency arransements.
=, Besides tne treasury notes; which Ger
10 nearly SJO,OO0,OO0, there Will fall due in
1904 500. 100000 OF bonds issued during the
last year. for which We have received
gold and in 1907 nearly S600000,0J0 Of per
cent bonds issued in 1871. shall the pay
ment of these obligations In gold be re-
pudiated? IL they are to be paid in such
manner as the preservation OF our ma
tional honor and national solvency de-
mands, we should not destroy or even inn
peril our ability TO supply ourselves with
gold Tor that purpose.
While am not unfriendly TO silver, and
while / desire 10 see il recognized to such
an extent as Is consistent with financial
honor and credit, l am not willing TO see
gold entirely banished from our currency
and finances. To avert such conse-
quence, l 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 treasury
should be authorized to issue bonds or
the government for the purpose of pro-
curing and main tanning a sufficient gold
reserve and the redemption and cancela-
notes and the treasury notes Issued for
the purchase of silver under the law OF
July Ii. 1899. We should be relieved from
the humiliating process OF Issuing bonds
to procure gold to be Immediately and
repeatedly drawn out on these obliga-
lions for purposes not related TO the ben
eft OF our government or our people. Inc
principal and interest of these bonds
should be payable on their face in gold,
because they should be sold for gold only
or its representative, and because there
would now probably be difficulty in dis
posing Of bonds not containing this stip-
ulation. / suggest that the bonds be Is
sued in denominations OF so ana So3 ana
their multiples, and that they bear inter-
est at a rate not exceeding 3 per cent
per annum. l do not see why they should
not be payable fifty years from their
date. We OF the present generation nave
large amounts to pay II we meet our ODD
legations, and long bonds are most salable.
The secretary of the treasury might well
be permitted at his discretion TO receive
on the sale Of bonds the legal tender ana
treasury notes to be retired, and OF course
when they are thus retired or redeemed
in gold they should be Cancelled.
These bonds under existing laws could
be deposited by national banks as security
for circulation, and such banks should be
allowed to issue circulation up TO the race
value of these or any other bonds so ue-
posted, except bonds outstanding bearing
only 2 per cent interest and which seh IN
the market at less than par. National
banks should not be allowed TO take out
circulating q
than $40, and when such as are now out
standing reach the treasury, except Tor
redemption and retirement, they should
be Cancelled and notes OF the denomlna-
ton OF $40 and upwards Issued In their
stead. Silver certificates OF the denomina-
tion of $40 and upwards should be re-
placed by certificates OF denominations
under $40.
AS a constant means for the mainten-
once OF q reasonable supply of gold in the
treasury, our duties on imports sh9uld be
paid in gold, allowing all other dues to
the governmentsto be paid IN any other
form of money. 1 believe all the provi-
sions l have suggested should be embod-
led in our laws IL we are to enjoy COM
plete reinstatement of sound financial
condition. They need not interfere with
any currency scheme providing Tor the
increase OF the circulating medium
through the agency OF national or state
banks since they can easily be adjusted
to such a scheme. Objection has been made
to the issuance of interest-bearing obliga-
lions for the purpose OF retiring the
notes In point ar Of fact Ss however,
these notes have burdened us with large
load of interest, and IL Is still accumulat-
Ing; The aggregate interest on me IN org, org,
in gold constituted the reserve for the
payment of these notes, amounted to NO.
S26,25O on January !, 1885, and the annual
charge for interest on these bonds and
those issued for the same purpose during
the last year will be $9,l45,OOO, dating from
January ], 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 last year, the more expen-
sive they will become.
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 In
any reasonable measure of relief, an eX-
preston of my determination TO leave
nothing undone which furnishes hope
for Improving the situation or checking a
suspicion OF our disinclination or disabil-
ity to meet with the strictest honor every
national obligation.
GROVER CLEVELAND.
Executive Mansion, January g. 1895.