Evening star., 1896-01-03

ed itself to my mind come to no other
conclusion than that the deficiency of rev.
enue and the consequent encroachment
upon the redemption fund is the cause of
our present financial condition, and that
the only remedies are either radical re-
duction Of expenditures or an increase. of
taxation, and perhaps both. do not be-
lieve that the condition requires suspen-
sion of public works or a postponement of
measures now in progress to strengthen the
army and navy.
''It is strange that the President in deal
ing with our financial condition should ig-
more entirely the pregnant and controlling
fact that during his term of office thus far
three issues of bonds have been made
amounting in the aggregate to $l62,3l6. 4OO.
to meet current expenses In times OF pro-
found peace. He attributes all our f1nan-
cial difficulties to the continued circulation
of United States notes and treasury notes,
debts bearing no interest, amounting to
nearly $5OO,OOO,OOO. His statement of the
origin and history of the United States
notes is strongly tinged with prejudice, for
though these notes were irredeemable for
time they were convertible into bonds
bearing interest payable in coin. They re-
placed notes issued by banks chartered oy
the several states.
'They were the best possible substitute
for coin, and in connection with the bonds
of the United States they furnished the
means by which alone the army and navy
could have been sustained during the war.
No Disturbance for Thirteen Years.
From the 1st day Of January, 1879, to the
election Of Mr.. Cleveland, in November.
1892, there was no disturbance of the or
derby receipts and exchange of gold and
currency. The gold deposited In the treas
ury in exchange for gold bonds In the sum-
mer and fall of 1878 amounted to ,5OO,-
600. The ordinary current revenue In the
treasury conducted the vast operations OF
81, friction
for nearly fourteen years. United States
notes were at par with coin, not only IN
every part of the United States, but IN
every, country in the world: During an
presented for redemption, but in amounts
comparatively insignificant. l have here
table prepared by the Treasury Department
by which it appears that during thirteen
Years, from the 1st of July, 1879, to the
1st of July, 1892, the redemption of United
States notes in gold averaged less than 3d.
100000 year, while during the last three
and-a-half years the redemption of United
States notes and treasury notes exceeded
500, 600 600 for each year. During the first
thirteen years gold was exported In large
quantities, but it was not drawn from the re-
serve. But during the past three-and- d-a-half
years $500, ,OO0,OOO was drawn from the re-
serve and $3O5, 100000 exported. The bal
ance with the domestic supply of gold, was
he arded in the United States.
During the first term of Mr.. Cleveland,
when he was powerless to affect our cur
rency and tariff policy, the Senate being
republican, the gold increased from $780,
OGO, 900 on the 1st of April 1885, to $780,
100000 on the 1st of April, 1889. This gold
came into the treasury without cost, in ex-
change for United States notes or gold GER
tificates.
When He Was Secretary.
cit is just to Mr.. Carlisle to say that he
attributes the withdrawal of gold to silver
LEGISLATION, yet the Bland-Allison act was
in force from 1878 to 1890, when the accu-
mutation Of gold occurred, and the great
body of gold was withdrawn after the act
of July IA, 1890, was repealed. In 1880,
while was Secretary of the Treasury, the
government received over $60,OOO,OOO of gold
in exchange for silver certificates and Unit
ed States notes. and yet this was done after
the Bland-Allison act was in force and the
silver certificates had been issued under
that act. United States notes and silver
certificates were more convenient to pur-
chase cotton and corn, and, when main
tanned at parity with coin, will always be
preferred in large commercial transactions,
as we'll as in the current business Of life.
"In view of these official facts can any
fair man doubt as to the cause of our
financial condition? What other cause can
be stated than that unwise legislation re-
duced our revenue below our expenditures,
impaired confidence in our ability to main
tain our currency at par, and compelled the
government to sell bonds provided for the
REDEMPTION OF U n1teQ states nOteS IN OrQer
to meet deficiencies? What other remedy is
there for our financial difficulties except to
borrow money on the best terms possible
to pay current deficiencies and to provide
additional revenue for future wants? To
this extent and for these purposes I am
willing to support this administration, how
ever much I may disagree with its general
policy.
The President Not Satisfied.
But the President is not satisfied. He
demands the retirement and cancellation of
all the United States notes and treasury
notes by the sale of bonds of the United
States, bearing interest. In his annual mes
sage he says: In anticipation of impend-
ing trouble. I had on the 2sth Of January,
1885, addressed a communication to the
Congress fully setting forth our difficulties
and dangerous position, and earnestly rec
ommending that authority be given the Sec
retary of Treasury to issue bonds bearing
low rate of interest, payable by their
terms in gold for the purpose Of maintain
ing a sufficient gold reserve and also for
the redemption and cancellation of out
standing United States notes and the treas
ury notes issued for the purchase thereof,
for the purposes provided in said act, and
none other
1.-The President COMPLAINS that the notes