Delaware gazette and state journal., 1895-12-19

ure to meet the just expectations of
the people in respect to the reforma-
tion of our fiscal system, we are enter
ing upon an area of material growth
and development not surpassed in our
history. vss
'The safety of tho existing situation
is, however, constantly menaced, and
our further progress toward complete
restoration ofNconfilence and prosperity
lie seriously impeded, by the defects in
our currency laws and the doubt and
uncertainty still prevailing in the
public mind, especially abroad, con-
cerning the future monetary policy of
the government. Until these defects
in our laws ara remedicd and these
doubts are removed, there can be no
satisfactory assurance of immunity
from periodical disturbances growing
out of tho obligations which the
government has been compelled to as
sumo in relation to the currency.
"Our past experience with the United
States notes and the Treasury notes
has clearly shown that the policy Of at
tempting to retain these obligations Of
the government permanently as a part
of our circulating medium, and to re-
deem them in coin on presentation and
reissue them after redemption, must
be abandoned, OF that such means must
be at once provided as will have
tendency to facilitate the efforts Of the
Secretary to accumulate and maintain
coin reserve sufficient in amount TO
keep the public constantly assured of
the stability of our entire volumeof cur
rency, and of our ability at all times
to preserve equality in the exchange
able value Of its various parts. The
latter alternative which, in my opinion,
IL adopted, would not afford the relief
demanded by the existing situation,
necessarily involves such large in
creases of the interest bearing pub
lie debt from time to time, and would
impose permanently upon the govern
ment such onerous and inappropriate
duties in relation to the paper currency
of the country, that it ought not to
be favorably entertained, except as a
last resort in the struggle for the main
tenance of the public faith and the
preservation of the inviolability of
private contracts.
"The issue of bonds to procure coin
for the reserve, which is the only Of
fectual method now available under
the law, will, unless conditions which
have already been developed by the
present policy are radically changed,
ultimately result in the creation OF a
public debt much larger than would be
required to retire and cancel all the
notes; and the annual interest charge
will be much greater than it would be
necessary to incur on new class of
bonds adapted to the present clrcum-
stances of the government and the we'll
l. e
however, an attempt is to be made to
keep the United States notes and Treas
ury notes permanently in circulation
by reissues after redemption, and the
government is to be permanently
charged with the duty of sustaining
the value of all our currency, paper
and coin alike, the conclusion cannot
be avoided that the policy of the issu-
ing bonds for the accomplishment of
these purposes must also become perma-
nent, and such additional powers must
be conferred upon the Secretary as will
enable him to execute the laws relating
to these subjects with the least pos
sible disturbance of tho business affairs
of the people, and the least possible
charge upon the Treasury. | am thor
oughly convinced that this policy ought
not to be continued, but that the
United States notes and Treasury notes
should be retired from circulation at
the earliest practicable day, and that
the govern ment should be wholly re-
lieved from the responsibility of provid-
ing credit currency for the people.
ut would be difficult, il not impos-
sible, to devise more inconvenient,
expensive or dangerous system than the
one now in operation under the laws
providing for the issue, redemption
and reissue of legal tender notes by the
government.
''There has never been a time since
the close of the war when the gradual
retirement and cancellation of the
United States notes would not have
been beneficial to the country, nor has
there ever been time when the issue
Of additional notes of the same character
would not have been Injurious to the
country.
If our legal tender notes we're re-
tired, there is abundant reason to be-
lieve that very large amount of gold
which has been excluded from the
country by the excessive use of silver
and paper in our circulation, would
promptly return to take its place in
our currency and constitute a per-
manent part in our medium of ex-
change. A country having such ex-
tensive trade relations with other
nations as we now enjoy, cannot be
deprived of its proper share of the
worlds stock OF money, and if it adopts
and adheres TO sound and stable cur
rency system at home, it will get the
best money the world has, because no
Other kind is ever used in international
| fosnt1 A 10 NO
ment leaves our people reasonably free
TO trade abroad, and does not make
any kind of paper legal tender in the
payment of debts, ii cannot materially
or iniuriuusy contract the currency by
the withdrawal of its own notes.
1.-The retirement and cancellation of
| the legiti tender notes would not neces-
sarily produce any contraction of the
| circulation and if such Il result should
follow, and continue for any consider
able period, ii would be demonstra-
tion of the fact that the volume Of cur
rency previously existing was not
needed in the business of the people,
for whenever the volume is reduced
below the actual requirements Of trade,
the deficiency will be supplied either
form abroad in exchange for our prod
ucis and securities, or by the banks at
home, or by both.
1.-The United States notes, and the
treasury notes issued in payment for
silver bullion, togeth amounting at
the beginning to S502 6l2, 0lS, have
been used, and arc still being used, to
Withdraw gold from the government
whenever our own people or the gov
ernments or peoples Of other countries
see proper to demand it for any pur-
pose, and. under the laws now existing,