The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-04

al u struggles 70 m,fr,sS- iaTsass
~ o1ete never h2S been 49, s1
hensiOh as 10 our ability to rar teps-
WIN sech money as ne had - sAr say
Ton Whether or not our currsrs Qess-
meet our current expenses has - ees
- t"e estIhlate or cur solya,nm
o, e.e SSnefai state OF our e1,s y
70 the foreign creditor ara lnha'e~aa
interest could only be paid i, rass11 Els
only concern was cur ahiN4y aho Ia
hahd that Kin Of money. on Irar @sPo a
more than a year and A hale h1A&
hrst oonus were issued 70 ra,lsnsl ~
soid reserve. there was a ne. 49, es
tne treasury exclusive ef sneh ~A~A
OF less than SlS.eooea but the ra,s eFf@
amounted 70 more than srl3 an ea ssss
was the quieting feature of tha NhaA
~ was Nhen the stock Of gold hag,.
dIE 70 ran that fright supervenss -
u securities held abroad vera an
for sale n debts owed abroad wn-eVorhA
ed for payment In the me,n,grna seS~
4 shipments Of sold and other ,.SAesa-
aois Indications caused res.isSs,a~s
fright among our people al bona Tas
upon n general state 81 our f,,s.
elusive Of gold became almost ,rn.1 e.
10 them and they. 100. drew g,ls sr1'
the treasury fer boarding ass;ns, an -
~tlhsehcles- rms Is plainly shown nv =.
large Increase in the proportion ~ -
withdrawn which was retained nv our 80
people as time and threatening i,rsssH
progressed. During the fiscal vsausass
ing July 80. 1894. nearly Ssa0nnn !, ~.
was withdrawn from the treasure =
about ST.0o.Geo a sent abroad -
during the fiscal year ending June "A ~
over S117, 900. 900 was drawn out az -
only about Ss6.o90,0oo was shipped lasvss
a large balance OF such withdrav.s.
be accounted for by domestic hoarsing
Inasmuch as the withdrawal OF or sa,
has resulted largely from fright. thar \
nothing apparent hat viii proven. !.
continuing or recurrence. with its na,s.~'
consequences, except such a change a ~.
financial methods as will reassure ~
frightened and make the dash for gas
less intense. IL is not clear how an
GREASE in revenue, unless Il be in rsa
can satisfy those whose only anx,esv !
10 gain gold from the governments ~
1t cannot, therefore. be safe TO rely -,
increased revenue as 4 cure for our -
ent troubles.
IL is possible that the suggestion osA
creased revenue as a remedy for the ~.
culties we are considering may have 49,.
mated in the intimation or distinct al.
cation that the bonds which haA
httAA ACFaC4 oSStAtCibAN y ANHitilSl tr
gold reserve were really issued TO supels
insufficient revenue. Nothing can be far.
Their from the truth. The ponds were -
sued TO obtain gold for the maintenane
OF our national credit. AS has been shosa
tho gold nus obtained has been drawn
again from the treasury with In,tea
states notes and treasury notes. This or
Grafton would have been promptly pre-.
vented II possible. but these notes. having
thus been passed TO the treasury, became
the money of the government. like asv
other ordinary government funds and
there was nothing 20 do but &c put them
out in paying government expenses when
needed. At no time when bonds have
been issued has there been any conssdsFa-
ton of the question Of paying the expenses
OF the government with their proceeds
There was no necessity to consider that
question. At the time Of each bond Issue
We had a safe surplus In the treasury FIR
the ordinary operations exclusive OF the
gold in our reserve. In February, i4
when the first issue of bonds was made,
such surplus amounted to over slS.0a,aa
In November. when the second issue was
made. il amounted to more than A2.ea-
600. In February, 1925. when bonds fer
tho third time were issued. u surplc
amounted 10 more than 500. 900. 600. II new
amounts 10 $40. 07o. 1890. Beside all this
the secretary of the treasury has no A.
thority whatever to issue bonds TO IL
crease the ordinary revenues or pay cur
rem expenses.
l cannot but think that there has bss
some confusion OF IDEAS regarding theA
fects OF the issue of bonds and the RESP
of the withdrawal OF gold. 1t was the EN
process and not the former that. by "
stituting In the treasury United S1A
notes and treasury notes for gold. inereast
by their amount the money which wsn
the first instance subject 10 ordinary g'-
nme expenditures. Although the hE
compelling an increased purchase OF silver
by the government was passed on the IVA
day of July, 1880. Withdrawals of gold from
the treasury upon The notes given IN pay-
ment on such purchases did not begin until
the close OF 1891. Immediately following
that date, the Withdrawals upon both these
notes and United States notes increased
very largely, and have continued 10 sun
an extent that since the passage OF thas
law there has been more than thirteen
times as much gold taken out OF the treas
ury upon United States and treasury notes
for silver purchases as was thus withdraWH
during the eleven and a half years after
specie payments were resumed.
Free Coinage of silver.
It is neither unfair nor unjust to charge
a large share of our present financial per-
plexitIes and danger 10 the operation OF no
laws of 1873 and 1890. compelling the puf-
chase Of silver by the government, whea
not only furnished a new treasury oDlga-
ton upon which its gold could be WIZ
drawn. but so increased the fear OF an
overwhelming hood of silver and a iorcsa
descent TO silver payment that even Inc Y.
neal OF these laws did not entirely cure ms
evils Of their existence. While l have q.
deavored 70 make a plain statement oi w
disordered condition of our currency anu
the present dangers menacing our prospsl.
ity and 20 suggest a way which ieaas pa
safer financial system, / have consta1a!
had in mind the fact that many OF oas
countrymen. whose sincerity ! 90 ~
doubt. insist that the cure for the Ills ROE
threatening us may be found in the s.nfss
and simple act of free coinage OF sase'
They say tina our minis should be al ohes
thrown open 10 the free. unlimited, ana
dependent coinage OF both gold and sl'sf
dollars OF fun legal tender quality. regafs.
less OF the claim OF any other go'arahsas
and IN full view Of the fact tha ~
between the metals which they sdgss.
calls for 100 cents worth OF goidin the g.
dollar at the present standard and oh9 Z
cents in intrinsic worth Of silver 10 thsA~
yer dollar.
were tNeFe lUfDlteiY SlFbhhI
than can be adduced for hoping that 80 :,
action would secure for us a bi-nsA-~
currency moving on lines Of parity. an
pertinent so novel and hazardous as -
proposed might well stagger those Wno
Iteve that stability is an imperative cOb-
ton Of sound money. No government
human contrivance or act OF iegisAsss
has ever been able 10 hold the Two mess
together In free coinage at a ratn 49,
ciabIy different from that which y 80
lished In the markets OF the worle. -
who believe that our Independent fres -
age OF silver at an artificial ratio NJ ~
OF l6 10 ! would restore the parity y y. -
the metals. and consequently between y
coins. oppose an unsupported and imp..
able theory TO the general belief ana w.
Ice Of nthar n~atlnna and 20 the IeaelNea