The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1895-01-31

comfortable surplus Of more than $63, O0o,-
700, but 1t Is not In gold, and therefore
loes not meet our difficulty. cannot SEQ
hat difference, of opinion concerning the
sxtent to which silver ought to be coined OF
Used IN our currency should interfere with
The counsels Of those whose duty 1t Is to rec
lily evils now apparent In our financial sltua-
ion. They have to consider the question of
National credit, and the consequences that
will follow Its collapse. Whatever ideas
may be Insisted on as to silver or bimetal-
ism, proper solution of the question now
pressing upon us only requires recOgnl-
lion of gold as we'll rs silver and a conces-
sion OF it's Importance, rightfully or wrong
FULLY acquired, as a basis Of national credit
necessity in the honorable discharge of
Dur obligations, payable In gold and badge
II solvency. l do not understand that the
real friends Of silver desire a condition that
might follow In action or neglect to- appre-
clate the meaning Of the present exigency
II it should result In the entire Punishment
Of gold from our financial and currency ar
engagements. Besides the treasury notes,
which certainly should be paid In gold,
amounting to nearly $500, DOC, 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 1897 nearly 5000,
300 Of per cent bonds Issued in 1877.
Shall the payment of these obligations in
gold be repudiated? If they are to be paid
In such a manner as the preservation Of
our national honor and national solvency
demands. we should not destroy or even
tmperil our ability to supply ourselves with
gold for that purpose While am not I'M
friendly to silver, and while I desire to see
It recognized to such an extent as Is con-
siStent with financial safety and the pres
srvation of national honor and credit, l
am not willing to see gold entirely banlshed
from our currency and finances. 10 avert
such a consequence l believe thorough and
radical remedial legislation should be
promptly passed I therefore beg congress
to give the subject Immediate attention.
The Presidents RecOmmen dnt1Ons.
In my opinion she secretary Of the treas
ury should be authorized to issue bonds of
the government for the purpose of procur-
ing and maintaining sufficient gold re-
serve and a redemption and cancellation OF
the United States legal tender notes and
the treasury notes issued for the purchase
of silver under the law Of July H. 1880.
We should be relieved from the humilating
process of issuing bonds to procure gold to
be Immediately and repeatedly drawn out
on these obligations for purposes not re-
lated to the benefit of our government or
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 its representative, and because there
would now probably be difficulty in favor
ably dsposing Of bonds not containing this
stipulation. I suggest that the bonds be
issued in denominations of $40 and $50. and
their multiples, and that they bear inter-
est at Il rate not exceeding per cent per
annum. I do not see why they should not
be payable fifty years from their dates. We,
Of the present generation, have large
amounts to pay If we meet our obligations,
and long bonds are most salable. The Sec
rotary of the treasury might we'll be per-
mitted at his discretion to receive on the
sale of bonds the legal tender and treas
ury 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 the circulation, and such banks should
be allowed to issue circulation up to the
face value of these or any other bonds so
deposited. except bonds outstanding bear
ing only 2 per cent interest, and which sell
in the market at less than par. National
banks should not be allowed to take out
circulating notes of a less denomination
than $40, and when such are now out
standing reach the treasury, except for re-
denption and retirement, they should be
cancelled and notes Of the denomination OF
$40 and upwards issued in their stead. Sill
yer certificates Of the denomination Of $40
and upwards should be replaced by certif.
Gates Of denominations under $40. AS q cen
slant means for the maintenance of a
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 other form of money. I be-
lieve all the provisions / have suggested
should be embodied in our laws If we are
to enjoy a complete reinstatement Of q
sound financial condition. They need not
Interfere with any currency scheme provid
ing for the increase Of the circulating me-
dunn through the agency Of the national
or state banks since they can easily be
adjusted to such a scheme. The objection
has been made to the issuance of interest
bearing obligations for the purpose of re.
firing the non-interest bearing legal tender
notes In point Of fact, however, these
notes have burdened us with a large load OF
Interest, and it is still accommodating. The
aggregate interest on the original issue OF
bonds, the proceeds Of which in gold con.
stituted the reserve for the payment OF
these notes, amounted to $7O,326, $50 on
Jan. l, 1895, and the annual charge for in
terest on these bonds and those issued for
the same purpose during the last year will
be 9,145 900, dating from Jan. 1, 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 in.
terest charges, and that the longer they are
outstanding, judging from the experience Of
the last year, the more expensive 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. 1 cannot, however, refrain from
adding to an assurance Of my anxiety to
cooperate with the present congress in any
reasonable measure of relief, an expression
of my determination to leave nothing I'm.
done which furnishes a hope for improving
the situation or checking suspicion of
our disinclination or disability to meet with
the strctest honor every national obligation
Grover Cleveland.
Executive Mansion, Jan. %, 1895.