The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-10-15
The Currency Question.

I derstandingly the very able presentation
Of the currency question by Secretary
Carlisle at the banquet Of the Massachu-
sets Reform Club last Saturday night
can have no doubt that we can have no
financial nepose in this country until the
/ greenbacks and treasury notes are re-
tired from circulation. Congress. when
/ il meets in December. should take up this
! question at once. and give its whole time
( TO il until il is disposed OF in a manner
I wholly satisfactory to the country's bust
ness interests. It has been stated that it
is the purpose Of congress to give its
/ attention TO nothing but routine matters.
the republican majority fearing that if
it should undertake 10 settle the currency
question the prospects OF the Republican
party for success in the approaching pres
idenual campaign might be injured. but
surely the way to win the confidence of
the people is not by neglecting their well
fare. The people have confidence in and
give their support to the party that shows
it has both the ability and courage to do
what is necessary to be done to promote
the country's prosperity.
What is the currency situation? 1t is
this: We have outstanding several hun
bred millions OF greenbacks and treasury
notes. for which gold can be demanded
OF the treasury at any time. When the
greenbacks were first issued no obliga-
ton rested upon the government to re-
deem them at any particular time. Hence
the treasury was not inconvenienced by
them. But under the resumption act of
1873 the government is not only required
to reissue these notes as fast as they are
redeemed. but must redeem them in coin
whenever presented. The same is true in
respect to the treasury notes. which were
issued in payment for silver bullion.
1t may be asked why these notes are
not redeemed in silver. The reason is that
it is the policy Of the government to main
tain the parity of gold and silver money,
and if gold were refused when demanded
gold and silver money would at once part
company
The government, therefore, must all the
time keep on hand a gold reserve sufi-
cient % satisfy the public that it has
the ability to meet all demands upon it for
gold. II the reserve sinks below a certain
amount business becomes disturbed, and
a panicky feeling takes possession of the
great money centers. which is felt to a
greater or less degree throughout the
length and breadth of the land.
1t would not be so bad if there was a
prospect of ever permanently redeeming
the greenbacks and treasury notes, but
they are like an endless chain; there is no
end to them, because they must be put
into circulation again as fast as they are
redeemed.
The treasury is compelled to do a bank
ing business without having the facilities
of banks. 1t cannot get gold to keep up
its gold reserve in ways that banks can
get it. The only way it has to get gold
is to exchange other currency for It or
to sell bonds for II. The selling of bonds
means the increasing of the public debt.
Already bonds to the amount of $257. 900
have been issued for the express purpose
of getting gold to redeem United States
notes and on these bonds $73,O0O,OOO inter-
est has been paid. But the notes are no
nearer being redeemed than they were
when specie payments were resumed in
1879.
The only argument that we have heard
urged in behalf of the United States notes
is that the government doesn't have to
pay any interest on them. But Secretary
Carlisle shows that the notes have cost
the government great deal more than
they would have cost had they been
funded into 4 per cent. bonds. In other
words, if the greenback and treasury
notes had been funded into 4 per cent.
bonds the government would have saved
500 3S9, 400. In the face of such a showing
as this it is difficult to see what excuse
congress can have for permitting the
United States notes to remain outstand-
ing. 1t is certain that if the currency
question could be wholly separated from
politics there would be no hesitation in
settling it at once. 1t may be that con-
gress win take hold of it soon after it
meets and bring about a reform in the
present unsatisfactory condition of the
currency. 1t it should do so it would
cause genuine but very gratifying sur
prise.