Evening star., 1896-01-03

did this circuit commence? The only an
sWer Is when the administration, supported
Why does this circuit continue? It is he.
cause the deficiency continues. The gov
Srnment reSorted to the financial policy of
MicaWber. It gives its bonds and thinks
The money received for current revenue is
pald to cover deficiencies, and is returned
Tor gold, and then more bofids. The Sec
retary hopes that in two or three years
ground for this hope? Is Il that new ad-
mlnistration will provide more revenue.
and then the circuit will be broken? Why
not apply the remedy nowe'
Congress to Give Relief.
IF defalcations occur coRgress should
Immediately supply the means to meet
them and Congress, and hot the adminis-
tration. must be the judge Of the mode and
amer of relief. The invasion and mis-
application Of the resumption fund is of
INFINITELY greater injury to our people than
taxation. .son,< fs,,Js-- ' VI
1T is said that the, lawr.,fo their in
creased reissue Is mandatory. That is not
fafr construction of the law: The plain
meaning OF 1t Is that the redemption of the
notes shall not cause their cancellation.
They are placed on the footing of bank
notes. -
The government ought to exercise the
same prudence. The President is of the
OPT hon that the United States notes and
treasury notes should be retired and give
place to bank notes. This is a question for
Congress to decide. 1t is certainly not of
that opinion now, nor was the last Con-
greSs OF that opinion. Outside of a few
large cities. where banking facilities are
abundant and business is transacted by
checks and commercial paper, there is no
desire for the retirement of national paper
money. 1t is not right for the executive
authorities to discredit this money by using
it for current deficiencies 1t was the use
and dispersion of the redemption fund that
created the circle Of which ahe complains
The Treasury Votes.
Il believe that under existing law the ag-
gregate sums of United States notes and
treasury notes issued under the act of 1890,
amounting to about $466. .OO0. 900, can be cas-
lily maintained at par with coin If the two
amendments 1 have mentioned are adopt
ed by Congress. These notes are legal
tender for all debts, public or private They
are a debt of the United States without in
terest and without other material cost to
the government than the interest or the
cost of the coin or bullion held in the treas
ury to redeem them. They are preferred
by the people to any other form of paper
money that has been devised. They have
all the sanctions of law and all the secur-
ity that has been or can be given by our
bonds They have the pledge of the public
IL,
The substitution of these notes for state
bank paper money Is one of the greatest
benefits that has resulted from the civil
war. These notes have all the sanction,
protection and security that has been or
can be given to our national bank notes
with the added benefit that the large saw
ing derived from them ii1sures to the peo-
pie OF the United States instead Of the
bankers. Another reason founded upon be-
lief IS that the national banking system
could not long endure If the United States
notes were withdrawn. I will lot on this
occasion discuss this or any other Of the
nu numerous nc. financial questions involved, such
as the policy of requiring the duties or i'm
ports to be paid in gold. The imports are
purchased with gold, are paid for in gold,
and we may require gold duties. The dis
position of silver certificates is a much
more serious problem. They are in express
terms redeemable in silver dollars. While
the silver dollars are maintained at par
with gold, it would seem that there was no
injustice In paying the silver dollars for
silver certificates. Then comes up the
question of free coinage Of silver which 1
regard as the most dangerous policy. All
these are vital questions ffdo not wish to
nngle with the pressing Recommendation
of the President in his last annual mes
sage, that, authority be given the Secre-
tary of the treasury to isspe bonds Of the
United States, bearing Tow rate of in
terest, payable by their terms in gold, for
the purpose of maintaining Sufficient gold
cancellation of outstandirE limited States
notes, and the treasury hbfes issued for
the purchase Of silver utder the law of
$780, He recommends the Exchange of gold
interest bearing bonds forsthe legal tender
notes of the United States,1 aid the substi-
tuition Of national bank noteg as our only
currency. He Is supporteG III this by large
and influential classes cfN e& fellow citi-
zens. most Of them engaged 4h banking or
classed as capitalists. Their arguments
mainly rest upon the diafeulties encount-
cred by the administration in maintaining
reserve in coin to redeem United States
notes. They forget that during period Of
fourteen years, when the revenues of the
government exceeded the expenditures. and
when the public debt was being reGuced
with unexampled repidity, there was no
difficulty In maintaining our notes at par
with coin. There is scarcely doubt but
that in all probable conditions Of trade or
finance except the contingency Of war, the
whole mass of the United States notes now
in circulation can be maintained at par
with coin if it is supported by reserve Of
gold coin or bullion or silver bullion In due
proportions equal to one-third or one
fourth Of the amount Of such notes.
Our National Currency.
"A careful study of the systems of
banking, currency and, coinage adopted