New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-27
THE ADMINISTRATION AT SEA.
no CONSISTENT FINANCIAL POLICY-sPIRIT OF
THE LAW VIOLATED.

| To the Editor OF The Tribune.
| Sir: Accounts rendered by the Government give
the expenditures during the three calendar years
$685. 1894 and 1895 1892 ss 600 in excess OF receipts
To this deficit $3.50 10000 Of bonds sold.
The National bank circulation was increased during
this period about $40 100000. In my communication
OF the 18th ulto published in your valued paper OF
the 3D. called attention to the fact that next 10
tho insuficiency OF revenue the entire disregard Of
tho Parity Clause Of 1890 accentuated monetary
disturbance. Since then THE Evening Post" and
the ex-Secretary OF the Treasury. prominent in the
Reform Club have been compelled TO acknowledge
that the Administration is not carrying out the let
ter spirit OF the law OF 1890.
The monetary legislation since 1873. establishing
the policy OF the United States has been a progress
sve legislation until brought to abrupt confusion
in 1893 II was never said to be perfect but It was
consistent. and aimed at perfectng solid monetary
system While not raided by the Government Itself
account OF insuf'icency OF revenue It wlthstood
successfully all speculative attacks.
The object Of the National bank circulation was
that 4, should be auxiliary circulation. and as
such II rendered valuable services until 1893; but 1t
was not intended that the National banking system
should oppose control the monetary system of the
country has been the during the last two
three years. In the present confused management
II the Nations finances. TO enable the Government
to control It's gold reserve. law should be passed
providing that National bank note circula-
ton shall be issued unless the 100000 900 gold
serve Is intact. and then not exceeding 100000
month.
II tho proceeds OF bonds not used TO meet
deficiencies OF revenue the consequent contraction
OF tho currency would absolutely control the gold
reserve. The National banks. holding to-day about
$3.50 900 900 OF gold could and would restore the re-
serve TO 100000 by deposltIng 100000 OF gold
and receiving currency therefore TO avoid tho con-
traction attending bond issue. and this bond Issue
would become unnecessary. With these restrictions
pu, upon the National banking circulation bonds
| could be sold payable in any Government currency
Issues at the pleasure Of the public.
The bonds sold and offered by the Government
| during the present Administration were defined
under the Refunding act OF July n. 1870. This act
provided for three classes OF bonds cent bonds.
redeemabe In ten years Az per cent bonds. In fteen
years and per cent bonds. In thirty years. The
spirit OF the law to authorize bond at limited
rate OF interest sell less than and at about
par II would be against the spirit OF this law 10
rate OF interest II not less than par Is obtained and
form when a 4 per cent bond Is sold at the relative
| premium But Is this latter not violating the spirit
OF the law In commencing Immediately 70 redeem
annually about per cent OF the principal. when the
law saws they shall be redeemed az the lower rate
OF interest only after thirty years
That the Administration has absolutely no none
tary pocy IL attestei by the coming OF silver dol
lars since March. 1898. an act entirely unwarranted
| hut done TO help cover up tariff Deficiencies.
FREDERICK WILLIAM LtTTGEN.
New-York, Jan %. 1896.