Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1895-02-01
He FAV0RS BONDS
The Presidents Scheme to
Put an End to the Out
flow of Gold.
WOULD ISSUE. 50-YEAR BONDS,
And Redeem and Retire the
Legal Tender and Treas
ury Notes.

has sent to congress the following spe-
clal message on the financial question::
To the Senate and House of Repre.
sentatives:-In my last annual message
commended to the serious considera-
ton of congress the condition of our
national finances, and in connection
with the subject Endorsed the plan of
currency legislation which at that time
seemed to furnish protection against i'm
pending danger. This plan has not
been approved by the congress In the
meantime the situation has so changed
and the emergency now appears so
threatening, that I deem it my duty to
ask at the hands of the Legislative branch
of the government such
Prompt and Effective Action.
as will restore confidence in our finan-
cial soundness and avert business disas-
ter AMI universal distress among our
people, Whatever may be the merits
the plan outlined in my annual message
as remedy for ills then existing, and
as safeguard against the depletion of
the gold reserve then in the treasury,
am now convinced that its reception by
the congress and our present advanced
stage Of financial perplexity necessitates
additional if different legislation, With
natural resources unlimited in variety
and productive strength, and with
people whose activity and enterprise
seek only fair opportunity to achieve
national success and greatness, our
progress should not be checked by false
financial policy and needless disregard
of sound monetary laws, nor should the
timidity and fear which they engender
stand in the way Of our prosperity.
There Is Lack of Confidence.
The real trouble which confronts us
consists in lack of confidence wide
spread and constantly increasing in the
continuing ability or disposition Of the
government to pay it's obligations in
gold. This lack of confidence grows to
some extent out Of the palpable and ap-
parent embarrassment attending the
efforts of the government under exist
ing laws to procure gold, and to a greater
extent out of the impossibility Of either
keeping it in the treasury or canceling
obligations by it's expenditure after it is
II obtained. The only way left open to
the government for procuring gold is
= BY the issue and sale of bonds. The
only bonds that can be so issued were
authorized nearly 25 years ago, and are
not well calculated to meet our present
needs.
Among other disadvantages they are
made payable in coin, instead of speci-
fically in gold, which in existing condi-
lions detracts largely and in an increas
ing ratio from their desirability as in
vestments. 1t is by no means certain
that bonds Of this description can much
longer be disposed of at q price credit
able to the financial character of our
government. The most
Dangerous and Irritating Feature
of the situation, however, remains to be
mentioned. 1t is found in the means
by which the treasury is despoiled Of the
gold thus obtained without cancelling a
single government obligation, and solely
for the benefit of those who find profit
in shipping it abroad, or whose
fears induce them to hoard it at
home. We have outstanding about
$500, 100000 of currency notes Of the
government for which gold may be de-
manded; and curiously enough, the law
REQUIRES that when presented and in
fact redeemed and paid in gold, they
shall be reissued. Thus the same notes
may do duty many times in drawing
gold from the treasury; nor can the
process be arrested as long as private
parties who profit or otherwise see an
advantage in repeating the operation.
More than $300,000,o0Q in these notes
have already been redeemed in
gold, and Notwithstanding such
redemption, they are still out
standing. Since the 18th day
day Of January, 1894, our bonded inter-
est-bearing debt has been increased
800, 1000, 900 for the purpose Of obtaining
gold to reple11sh our coin reserve. Two
issues were made, amounting to $50, O00,-
600 each, one in January and the
other in November. AS result Of the
first issue there was realized something
more than SIS, 200, 900 in gold, Between
that issue and the succeeding one in
November, comprising a period of about
ten months, nearly $l03, 100000 in
gold were drawn from the treasury.
This made the second issue necessary
and upon that more than $5S, 000, 900
in gold was again realized. Be-
tween the date of this second issue
and the present time, covering period
of only about two months, more than
$69, 600, 90 in gold have been drawn from
the treasury.
Not . Question of Revenue.
It will hardly do to say that simple
increase of revenue will cure our trou-
bles. The apprehension now existing
and constantly increasing as to our
financial ability does not rest upon a
calculation of our revenue. The time
has passed when the eyes Of investors
abroad and our people at home were
fixed upon the revenues of the govern
ment. Changed conditions have at
tracted their attention to the gold of the