Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1895-12-17
or by both. /. f a K

Tho United Statcs issued In payment
In silver bullion. together Amounting Ut
the beginning to SbVs, lois. have been
uked and are still being used to With
draw gold from tho government whcn-
ever. our own people or the governments
or people o. other countries geo proper
to demand II for any purpose. and
under the laws now existing the score.
tary OF the treasury has no means Of
complying with theks demands except
by the Issue and saln OF intcrest-hcnr-
ing bonds, under tho act OF JANUARY u.
1875, or by tho purchase Of gold coin
With bonds or uotce OF the Unitcd
Staten under section s70o Of the re-
vieed stitutss. Againlt these demands
the TREASURY hos no available mcans
OF defense except At the sacrsnce OF the
public credit and the Immediate de-.
prsoiatloD OF tho entire volume OF our
currency.
Long adherence TO false system has
to great extent undermined our ma
tional credit 10 far as Il Nv related to
the maintenance OF n sound currency.
and II must he ioconstructcd--
merely prorped up by FRAN and tenn
porary nupports. No Burplua revenue,
however large, could cxtricatc US from
our present difficulties or glye asspr-
nnce OF safety In the future. unless II
should be required TO be paid In gold
under system which would exempt
the government trpm the obligations
to furnish the gold which IN demanded
to be uecd IN making tho payments,
and II IL scarcely necessary TO auggost
that auch u aystem ~ Impossible as
long as the United Stntos notcs and
treasury notes are Kept In circulation
und ara rrdeemable In gold by the
government itself on presentation.
The opinion seems TO prevail TO sptnr
extent that the mere rosacAslon OF II
FurpluH ia the treasury would prevent
withdrawals OF gold and taus render
the issue OF honda for the protection of
the revenue unnecessary. but this view
OF n subject Is founded, In my judg-.
ment, upon an entire mlscOnccption or
the causes that have produced the
Withdrawals. Unless nm wholly mis-
taken. they have very little II any. re-
lntion to the amount OF money held by
the government or to the amount OF
money the government has the ebility
to rnlAe by taxation or otherwise. but
they relate primarily and almost ex-
ciusively 20 the character OF the money
It might he able to supply and keep In
circulation.
In other words, II was npprehen-
sion az to the kind OF money to be
used. and not as to the amount OF
money on hand. that brought our Sc
curltics bnck from abroad Tor SAFE.
caused foreign Investors to withdraw
their capital and foreign creditors 10
collect their debts, and compelled our
own people TO suspend or contract
their business operations. and thus
diminish the incomes OF employers ana
greatly reduce or entirelS stup the
wages OF labor.
WHY GOLD WAS WITHDRAWN.
Large Withdrawals hay" been mhas
during the last three years, hmpiy
hscause uold was wanted and the de-
sire to secure gold was due TO grow
inr diatrunt of the other kinds OF cur.
rency In circulation, and not at al
10 any apprehension thnt tho govern
ment would not be able 10 dischui4s
all its obligations In some knu on
pay or gold. When the rv.elp.s ~
TN customs consisted very largely or
roid. as was the case prior 10 Juiy \,
isog. before the results OF our defective
currency nyatem had been developed
surplus revenue enabled the treasury
10 nay out gold without disturbing
the reserve. and. besides. there was
Mt that time no great demand LOT so'u
by the presentation OF notes Tor re-
domntion md there wnuld. therefore,
bays been no diniculty In maintaining
the reserve, even II there hnn
bren no eurpluH In the TREASURY
hui tho conditions have entirely ehahg-
ed. and entirely different policy ~
Demanded TO meet the situation now
existing. With or without surplus
revenue, the government can now pro-
c,iro gold only by negotiating loans or
by making purchases under the stature
ana this state OF nfinirr, which " tho
natural result OF Causes sun opera
five. IL almost certain to continue IN
III tho causes themselves nrc removed
hut ONE SAFE WAY,
mrnerc is but one safe and effcctual
vny" the secretary says, TO protect
oilr treasury against these demands,
and that is to retire and cancel tho
| notes which constitute the only means
through which the Withdrawals can
be made. Many partial ana temper hry
remedies may be tugscsted nnu urg,u
| with more or less plausipiiity pW uis
| IN the only one that VIII certainly 70.
nova the real cause OF our trouble And
u,va assurance OF permanent protec-
lion against their recurrence IN mo
.,rhis can be most srccossfully nc
complIshed By authorizing the secss-
| tnry OF the treasury 10 issue rom
time 20 time bonds payable 10 noa .s
| bearing interest at rate moi vNcvsu-
inc 4 per cent per annuin, ana nav
Ing n long time 70 run anu 70 ex-
ctanre the bonds for United states
| nntea and treasury notes upon sucn
| terms as may bs most ndvan,nseous
| 10 the government, OF W ssn .hssA
| abroad for gold whenever In ms JUG,
mcnt. It Ia advisable TO do 80. ana
| uss the gold thus obtained W reuesm-
| ing the outstanding notes. unusr VIZ
oueration OF such plan. II 1udiciousIy
| csecuted, there could be no Improper
| contraction Of the circulation. because
| II Il nhouid ut any time be found tnat
| other forms OF currency wore nov ps-
inv supplied TO the extent rsqunsu,
exebances Of bonds for notes would pe
| suapendcd. and gold would be procureo
| ~ seiiing ths securities abroad.
~ NATIONAL BANKS:
In order TO further fncilitste tne
| .nbrtitutIou Of other currency for me
rst,rement OF legal tender notes. tne
nationai banks should be authorised 70
isr,is notes equal In amount 10 the face
vaius OF bonds deposited 20 secure ne
most taxation. their circulation snoulo
be reduced to ~ Of per cent per
| annum. - -.
| tlrefneut and cancellation OF tho lekni
tender notes the treasnry ahouia %
| relieved from responsibility for the r.
| demptIon Of national bank notes except
| worn. mutilated and defactd notea ana
| the notes OF failed banks, ma Gao.
| nssocintion should be required 70 r.
| deem its circulation at ~ own oipc ~
| and at agencies 70 BE- dc~lgnnteo ~ tns