Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1895-12-04

serve the people, SO regulated and
restrained to secure their safe and
conservative control and management,
but there might not be the necessity for
such an addition to the currency by
new issues of bank circulation as at
first glance is indicated.
do not overlook the fact that the
cancellation of Treasury notes issued
under the silver purchasing act of 1890
would leave the Treasury in the actual
ownership of sufficient silver, including
seigniorage, to coin nearly $17S.000,-
900 in standard dollars. 1t is worthy
of consideration whether this might
not from time to time be converted
into dollars or fractional coin and
slowly put into circulation as in the
Judgment of the Secretary of the Treas
ury the necessity of the country should
require.
EFFECT OF REVENUE RECEIPTS.
In the present stage of our difficulty
it is not easy to understand how the
amount of our revenue receipts directly
affects it. The important question is
not the quantity of money received IN
revenue payments but the kind OF
money we maintain and our ability to
continue in sound financial condition.
We are considering the Governments
holdings of gold as related to the
soundness Of our money and as affect
ing our national credit and monetary
strength. If our gold reserve had
never been impaired, or if no bonds had
ever been issued to replenish it, there
had been no fear and timidity concern
ing our ability to continue gold pay
ment, if any part of our revenues were
not paid in gold. and if we could look
to our gold receipts as means OF main-
tanning q safe reserve, the amount OF
our revenues would be All influential
factor in the problem, but unfortunate
ly all the circumstances that might
lend weight to this consideration are
entirely lacking in our present predio-
ament. No gold is received by the
Government in payment of revenue
charges. Nor would there be if the
revenues were increased. The receipts
of the Treasury, when not in silver GER
tiflcates, consist of United States notes
and Treasury notes issued for silver
purchases. These forms of money are
only useful to the Government in pay
ing it's current ordinary expenses and
it's quantity in Government possession
does not in the least contribute toward
giving us tokens of safe financial stand
ing or condition which is built on gold
alone. If it is said that these notes,
if held by the Government. can be used
to obtain gold for our reserve, the an
swer is easy. The people drew gold
from the treasury on demand upon I'm
tied States and Treasury notes, but the
proposition that the Treasury could
draw gold from the people upon them
would be regarded in these days with
wonder, and even if this could be done
there is nothing to prevent those thus
parting with their'.gold from regaining
it the next day or the next hour by the
presentation of notes they received in
exchange for 1t.
GOLD MIGHT BE BOUGHT.
The Secretary of the Treasury might
use such notes taken from a surplus
revenue to buy gold in the market.
Of course he could not do this without
paying a premium. Private holders Of
gold, unlike the Government have no
parity to maintain and would not be
restrained from making the best bar
gain possible when they furnished gold
to the Treasury. but the moment the
Secretary of the Treasury bought gold
on any terms above par he would estab-
lish general and universal premium
upon it. thus breaking down the parity
between gold and silver, which the
Government is pledged to maintain,
and opening the way TO new and SER
ious complications.
In the meantime the premium would
not remain stationary, and the absurd
spectacle might be presented of a
dealer selling gold to the Government,
and with United States notes and
Treasury notes in his hand immediate
ly clamoriDg for its return and resale
at higher premium. 1t may be
Cidimtu tudt a largo io'ouuo anu To-
dundant receipts might favorably affect
the situation under discussion by
affording AN opportunity of reclaming
these notes in the Treasury when re-
ceived, and thus preventing their pre-.
sentation for gold. Such retention to
be useful ought to be at least measure
ably permanent. and this is precisely
what is prohibited. so far as United
States notes are concerned, by the law
of 1878 forbidding their further retire
ment. That statute in 80 many words
provides that these notes, when received
into the Treasury and belonging to
the United States, shall "be paid out
again and kept in circulation.
On July /, 1898, more than q year
and half before the first bonds were
issued to replenish the gold reserve,
there was a net balance in the Treas.
ury exclusive Of such reserve of less
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