The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-01-02

ever he is firm in the belief that he voted
right and that the gold reserve should be
protected even if it has to be done by
more bonds.
''The law of 1875 giving the secretary
of the treasury and the president power
to issue bonds to protect the gold reserve
was Republican measure" he said 'lf
it was good Republican doctrine then, it
is good Republican doctrine now. The
fact that there was this power to issue
bonds is the one thing that has saved the
financial credit of the country. No nation
in the history of tue world hiss ever been
able to float as big paper currency on SO
small a specie reserve as this country has.
The fact that il has been able to do so is
because of its 'unexampled growth and
prosperity"
It is Mr. Calderhead's opinion that
our present financial ills are due to the
paralysis of the industries of the country
by putting into effect a Democratic
tariff. The balance of trade, he said. de-
pended on the activity of our own indus
tries; how much we sold ourselves as
we'll as how much we sold others. If we
bought largely at home. as we would
under protective tariff, the balance of
trade would be in our favor. In that
case it would make no difference how
many securities London bankers threw
on the New York market-no one but
the spectators would be pinched, and
let them be pinched.
From 1878 until the last Democratic
administration went in," he said, she
treasury notes and all paper of the
United States was international money.
Our paper passed for its face value in
London, Berlin, Vienna, Paris, anywhere
it was presented. There would be no
trouble now except for Democratic mis-
management"
When asked what he thought of the
proposal to pay in silver where legal
tender notes were presented, Mr.. Calder
head said:
"If it was a dangerous thing to have
our currency below par as it was during
and after the war, and if it was a wiss
thing to redeem it. it would now be an
unwise step to go backward"
He said such a proceeding would
bring US to silver basis and a depre-
ciated currency. There are those" he
said, "who believe that silver basis
would be all right but that is not my
opinion"
Then we are virtually on a gold basis
now?"
THAT is practically the case. The
United States has never done anything
else but pay in gold sinca 1881. The law
says pay in coin, but every secretary of
the treasury has paid in gold and that
IS the reason l0dC Ill OF our mOQ0V uaS
been kept on a parity"
do you believe that if bonds were not
issued either in accordance with the
house bill or in some other manner that
the country would go to a silver basis?"
"That would be the result if the gold
reserve should not be replenished."
.'Do you think it would come soon?" =
81 can't say how soon, but it would not
he long"
more bonds of some kind then are
necessary to maintain the nations cred
it?'
"Yes; l think the replenishment
of the gold reserve is necessary
to save our financial integrity. If
the proper amount of revenue could
be raised at once we could tide over
the present without filing the re-
serve. If bonds are to be issned I would
much prefer to see the lower rate kind
issued to be taken by our own people.
There is no doubt that 200 millions or
even 800 millions would be taken by our
own people if necessary. 1 do not like
Mr.. Cleveland's method of issuing bonds.
But if he will not accept the house plan
and it is necessary to protect the gold re-
serve l believe they should be issued"
Mr.. Calderhead believed the manner
in which Mr.. Cleveland has bartered with
bankers and traffj cked in the public cred
it was an outrage on the people.
He said further that while he thought
the keeping of the gold reserve up to
the requirement, even by the issuing of
bonds, was absolutely necessary, never
theiess he believed our whole financial
system was wrong.
He thought there was no chance to re-
model it until the Republicans got into
power in all branches of the government
III. F. NJ.