The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1895-12-12
THE FINANCIAL MALADY.

policy.
THE FINANCIAL MALADY.
The President, in his message, does
not use any red paint in picturlng
the financial condition of the govern
ment and some of his statements
might be mista ken for the pessimis-
tic utterances of the silver craze |
Gala nifty howlers, (as our gold bug
friends delight in denominatlDg tue |
frank expressions of the free coinage
people, if it was not known that
these statements. proceed from one
of the most prominent worshlppers
at the shrine of the golden calf. But,
after all, the free-coinage people and
the President alike are correct In
asserting that the government 's
financially ill, the results of the
diagnosis OF each being about the
same aud the difference between the
two living in the remedies suggested
for the cure of the malady.
The President sticks to the single
geld standard like a leech, as was
expected. He recognizes the disas-
trous results of currency system
which requires the government to
redeem notes and then Immediately
reissue them to be again redeemed
repeatedly. As he puts it, the gov
n
ton and pays without an acquitt-
ance. "In other words" he says,
ssthe government has paid in gold
more than nine tenths of it's United
States notes and still owes them all. :"
In other words, the government is
! situated as an individual would be
that would pay a note and then
issue the note again: and again and
each time borrow money at ruin
GUS discount in order to redeem 1t
again.
When the repeal of the purchasing
clause of the Sherman act was under
considerat ton, it will be remembered
that the President advocated the
repeal, but suggested nothing in its
place. This time, he ventures sug'
eestion to meet the present emer-
gency. He recommends as 1.-THE only
thorough aud practicable remedy fol
our troubles" the retirement ano
cancellation of "the United States
notes commonly called greenbacki
and of the outstanding treasury
notes issued by the government II
payment of silver purchases under
the act of $780,"
10 stop here would probably LEAD
to ''copfusion worse confounded' 81
far as the masses are concerned, al
it would lead to the still further con
traction of the currency which is nov
entirely inadequate to the necessitie
of the people.
The President says 1.-The retiremen
of the United States notes ant
, Treasury notes, amounting tt
| probably less than $4S6, 900, OOC
might be supplied by such gold a
would be used on their retirement o
= by an increase in the circulation c
2 oar national banks"
He thinks "they should be allowe
to issue circulation equal to the pa
, value of the bonds they deposit t.
. secure it. and that the tax on thei
e circulation should be reduced to ont
fourth of per cent"
! The President says, further:
Il "The banks already existing,
a they desired to avail themselves {
s the provisions of law thus modified
t could iseue circulation in addition t
that already outstanding, amount
ing to $47S, 100000. which woul
nearly or quite equal the currenc
= proposed to be Cancelled. At an
e rate, should confidently expect t
y see the existing national banks c
Others to be organized avail then
selves of the proposed encourage
ment to issue circulation, an
It promptly fill any vacuum and suppl
e every currency need.
We are frank to say that in OF
it opinion this would be a very poo
e and uncertain dependence and the
10 some means that would inspire mo-
g. confidence should be devised as
5s substitute for retired currency.