The Indianapolis journal., 1896-12-22
CURRENCY QUESTION.
Argument in Favor of Retiring
Greenbacks from Circulation.


In his discussion of the currency question
the secretary makes an exhaustive argu-
ment in favor of the retirement from cir
culation of United States treasury notes,
in the course of which he says:
Since March /, 1893, United States bonds
to the amount of $262 310, 400 have been
issued and sold for $293 4s1. S94 in gold. while
during the same time notes have been re-
deemed in gold to the amount of $457, ,OS9, $50.
and on the first day of December. 1896.
there was free gold in the treasury to the
amount of sl3l, SIC, 352. Since the resumption
of specie payments on the first day of jan
uary, 1879 United States notes to the
amount of $40. AGO. ss7. and treasury notes
of $50. AS, $751; making $556.91 s6S i'm the ag-
eregaJe. Eavc been redeemed in gold. and
since Aug. ]. 1888 treasury notes to the
amount of s35, ,121. .722 have been redeemed in
silver and the notes so redeemed have been
cancelled and retired from circulation.
Making no deductions on account of the
loss or destruction of notes, the total
amount of United States currency in eX-
iStence on the first day of December. 1896,
United States notes, and sl2l ,677, $50 in treas
ury notes of 1890. and. consequently. it ap-
pears that the entire volume of such notes
has been once redeemed in gold. and more
than $685. 561. COO have been twice redeemed.
Our experience since the resumption of
specie payments has so thoroughly demon
strated the impolicy of attempting to main
tam the circulation of these notes as a
permanent part of currency. that fur
ther argument on the question seems TO be
unnecessary. except for the purpose of
again pressing the subject on the atten-
ton of Congress and urging the prompt
adoption of such measures as will, within
a reasonable time, eliminate this element
of weakness from our system.
THE use of these notes as circulating
medium compels the government 10 pro-
vide a large gold reserve for their current
redemption and, as they are reissued when
redeemed, such reserve must be replen-
ished from time to time, in order to afford
4 n reasonable assurance
default will be made in the discharge of
our public obligations The difficulty of
procuring gold for this purpose is greatly
Increased at the very times when its pos
session is most necessary. and, conse-
quently. the government. being at such
times entirely deprived OF gold receipts
from the ordinary sources OF revenue, Is
compelled to issue and sell bonds on terms
less favorable than might bs procured un-
der other circumstances. Fhe annual in
terest on the addition To the pubic debt,
which has been made to procure and main
tain the reserve. amounts TO Sl6.3l2616, and
the aggregate of the principal and interest
at the maturity of the bonds will be more
than s641 100000. and yet the notes them
selves. on account OF which this enormous
Indebtedness has been incurred. will. If
our present policy is maintained. remain
unpaid. But il may be safely assumed that
this will not be the whole measure of the
burden imposed on the people; because, If
provision is not made for the cancellation
Of this currency. rs reasonably certain
that emergencies will hereafter arise. from
time TO time. compelling the issue and sale
Of additional bonds 10 replenish the reserve,
thus increasing our interest-b bearing debt.
without in the least diminishing our obli-
cations on account of the notes.
LAWS NEED REFORMATION.
The maintenance of policy which nee
cssariy imposes on the government the
burden Of furnishing gold at the public ex-
pense TO all who may demand it for use or
boarding at home. or for export TO other
countries, cannot be justified on any ground
of expediency or sound financial principle.
and even If the periodical and frequently
recurring demands for gold did not weaken
the foundations of our entire currency sys-
tem. thus impsiring confidence and depress-
ing business. II would nevertheless be the
duty OF all who are charged with any de-