Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1896-02-19
TuCKERoN FINANCE.
The Virginia Representative in Congress TrealS
Of This Subject
EVILS oFoUR CURRENCY SYSTEM
Cause and Effect of the Constont RAIDS on
the Treasury Gold Reserye-siiverrss'' AN
Its Place in Our Affairs.

WASHINGTON, February 8.-(Special
to the Richmond Dispatch. lin view
of the interest in national finances. Mr.
Tucker, representative from the fenth
Virginia District, was to day asked Tor
his views on the financial policy OF
the government, and in reply said that
sit was q question which involved
great many qualifications, but was one
which ought TO be associated IN the
public mind from another question
which is very closely akin to It,. yet
distinct from it, to-wit, the free and un-
limited coinage of silver at the ratio OF
Is to the two propositions being en-
tirely distinct. the one Involving the
character of the money TO be used as
primary money, and the other tho cur
rency to be based on 1t, and the main
tenance of the government credit.
I'm round numbers we have to-day
$3.50. OOO, 900 of greenbacks as currency,
which are debts against the govern
ment, but, unlike the note given by
one man to another for a debt. they
are not cancelled when redeemed by
the debtor (the government, but by q
specific law are required to be relssued
When q man pays his note OF hun
bred dollars to his neighbor the note
is cancelled and the debt extinguish
ed. When the government pays a
hundred dollars in greephacks by re.
demption they are not cancelled, but
by law are required to be reissued In
the payment of the current expenses
of the government. So that thegreen-
back is, under existing law, a continu.
ing obligation of the governments,
which is being continually redeemed
and reissued. By paying them the
government is not relieved of it's debt,
because it is required to reissue them.
'These greenbacks. on their face, are
payable by the government in coin,
which means gold or silver, but, by a
construction Of the Treasury Depart
ment. which has existed for some Tiff.
teen years, the coin has been con-
strued to mean gold at the option OF
the holder, as if an obligation by one
man to another to pay a hundred
bushels in grain must be paid in
wheat, and not in corn or oats, at the
option OF the holder of the note. This
construction of the Treasury Depart
ment, in constituting the word coin to
mean gold, at the option of the holder.
is sought to be justified on the ground
that such action is necessary in order
to maintain the parity between gold
and silver.
I'm addition to the greenbacks un.
der the Sherman law of 1890 (Which the
Fifty third Congress promptly repeal
ed), there have been issued by the gov
eminent $15O,0O0,0O0 of obligations,
known as Sherman notes, also payable
in coin. By the same process OF con
struction these notes are redeemable
| at the option of the holder in gold. So
that there exists to day $500, 900, 900, in
| round numbers, of outstanding obi.
cations of the government, payable in
coin on their face, but by said con-
struction held to be payable in gold at
the option of the holder.
RAIDS ON THE TREASURY.
1.-THE trouble which the Treasury
Department Is suffering from and has
been suffering from for the past few
| years, in the maintenance of the gold
reserve for the redemption of these
notes, is due. in my opinion, to the
construction first put upon the word
coin by the Treasury Department,
the Treasury, and since uniformly fol
1
is simple: The greenback is presented
to the Treasury, the holder demand.
ing gold for it; the gold is paid, the
Treasury loses it. and gains in its stead
the greenback, for which it was ex-
changed. If the process stopped there
it would be all right, but the law, re
quires that the greenback which has
been redeemed at the expense of an
equal amount of gold taken out of the
Treasury, must he reissued, when 1t
speedily falls into the hands of the
speculator, and he brings it back to
the Treasury to take out it's equivalent
in gold again, and so the process con.
tinues, and becomes an endless chain,
or an endless raid upon the Treasury
by the Spectator, and an audacious
| attempt to break down the credit OF
| the government.
ITO meet this trouble and to pre-
serve the gold reserve it has been
earnestly commended that the green
back and Sherman notes should be re-
tired permanently, by issuing $500, 000,-
600 of gold bonds with which to cancel
them.
1.-THE proposition to retire the green
backs and Sherman notes by the issu-
ance of bonds to the amount of $780,
OOO, 900, with the proceeds of which
these notes could be bought up and re-
tired, is not only one which l think
fraught with great danger to the poo
pie, but it is admitted on all hands
that it cannot in the near future be
accomplished by any party. The dis
tlngulshed Secretary of the Treasury
in the last Congress proposed bill
which would have greatly relieved the
situation, If not entirely, providing for
the retirement of the greenbacks and
the substitution of State bank issues
in their place, but it hardly received a
respectful consideration from either
party in the country, SO that it seems
to be settled fact that at least for two
or three years, under present condi-
tions, nothing will be done to retire
the greenbacks, and we are to stand in
the same position in which we find
ourselves to- day, for the present Con
gress seems both unwilling and afraid
to suggest any remedy.
THE PRESENT QUESTION.
1.-THE question is, can the country af-
ford to continue it's present made of
procedure, issuing bonds to secure gold
to put into the Treasury to preserve
the gold reserve. which may be in twen-
ty four hours taken out of the Trea
ury, and q demand for an additio nal
sale of bonds he made at once to re
plenish that which is already gone In
other words. can the country stand
what may be the unlimited mortgaging
OF the revenues of the government for
the future, to obtain gold which may
be taken from us the day after it is put
into the Treasury?
1.-THE credit of an Individual NAV be
lost in two ways-first. in his failure to
pay his, obligations as agreed, or Sec
ondly, in mortgaging his assets or es-
tate SO that in the near future he will
be unable to pay. The condition pre-
sented to day is just this: If the gov
eminent fails to pay it's obligations in
gold. as claimed above, by reason of the
failure to maintain the gold reserve, it
may go to protest. If the government,
in order to pay it's obligations in gold,
its revenues indefinitely for
the future by bond issues, it's credit