The Wichita daily eagle., 1896-12-09
Is IT aooD-BYE. aREENBAcKsa

President Cleveland's attitude toward
the legal tender. reissuable greenback is
well known. He emphasizes his former
recommendations by declarations. The
| trouble is public sentiment which has al
WAYS been favorable to the greenback.
and against its final redemption and
cancellation.
| The United States notes, or greenbacks
were issued under an act which became
a law by the presidents approval on
February 25, 1862 This was the legal
tender act. BY it's authority notes were
issued at various times to the amount OF
$3.50. 100000. This amount was subse-
! uuently reduced to SS46.6S1. .O16. and
these notes were practically made per-
manent debt to the last named amount
by the law Of 1878. They were made
redeemable in coin by the law of 1870.
known as the resumption act, and by
| the uniform interpretations Of the re-
| uuirements of this law by successive
| treasury officials, coin means gold, II
gold is demanded.
For the purpose Of the redemption OF
these notes in gold on demand Secretary
Sherman established a gold reserve.
This was not provided for by law at the
time of its establishment. Its creation
was. however, subsequently approved.
and its continuance was ordered. The
act of July II, 1882, directed that 1.-The
SnSrnnd
the issue of gold certificates whenever
the amount of gold coin and gold bull
limo in the treasury reserved for the re-
demption of United States notes falls
below one hundred millions Of dollars" ;"
This act. therefore. virtually fixed the
gold reserve at S1OO.OO0,OOO. Moreover.
il was practically fixed at that amount
in perpetuity by the joint action of the
laws of 1873 and 1852. This feature
constitutes the essential weakness of
this department of our currency system.
1t is true that it's deleterious effect did
not manifest itself until the present ad-
ministraton came into power.
The New York Mail and Express. in
late issue, gives complete editorial
history of the greenback. incidentally
pointing out wherein it has become
burden. if not a menace. According to
the act of May 81, 1873. the United
States notes, or greenbacks, must be re-
issued when received into the treasury
in any way. Their redemption Is COM
pulsory. and their reissue, when re-
deemed, is also compulsory. This work
ed well enough so long as the govern
ment was able to meet its current eN-
penses out of its revenues. 1t Is also
true that until recently no one was dis
posed to take advantage of the weakness
Of this system for personal profit. The
consequence was that for years after
the resumption of specie payments COM
raratiyely few notes were presented Tor
redemption. Up to the passage Of tie
Sherman act of July Ia, 1890, only
about $2S,OOO,OO0 had been redeemed.
But after that date the amount grew
rapidly. reaching the sum of 1881, ,19o,-
733 on February %, 1896. Still not one
dollar Of the greenbacks outstanding on
January 1, 1870. when the resumption
act went into operation. has been per-
maneDtly retired. Thus these S346. 6.6S1,-
Ola Of greenbacks continue to constitute
debt which must be repetitiously paid,
and incurred again as fast as paid; and
that can never be Cancelled until the
laws regulating this form of our curren-
cy arc amended or repealed.
This. however, is not all Of the injury
inflicted by this defective system. The
treasury notes of 1890 are redeemable
''in gold or silver csin at the discretion
of the secretary of the treasury" This
is the only form of currency in connec-
ton with which this discretion is spe-
cifically given. But the same act pro-
v;des that it is ''the established policy
Of the United States to maintain the two
metals on parity with each other" BY
virtue of tbs policy it has been necessary
to redeem these notes in gold if demand
ed. Then, again, these notes, when re-
deemed. or otherwise received into the
treasury, according TO the law, may be
reissu ed, but no greater or less amount
OF such notes shall be outstanding at
any time than the cost of the silver bull
lion and the standard silver dollars coin
ell therefrom then held in the treasury
purchased by such notes." The word
may" in this law instead of the word
must" as in the law of 1878, makes
these notes of 1890 subject TO cancella-
ton when redeemed. In fact, over S19,-
100000 of them were so retired up to
March 1, 1896. Strange as ii may seem,
this amount was redeemed in silver.
The secret is that under the law of Au-
gust 4, 1856, when a person wishing to
send money away deposits treasury
notes the government obligates itself to
transport an equivalent amount in silver
to the desired point without cost to the
sender.
In addition to tbs 1900. 600 redeemed
in silver and Cancelled, there was re-
deemed in gold up TO March 1, 1896.
s1S4T,574 These notes have been re-
issued. and may be presented at any
time at the treasury 10 be redeemed in
gold again. Thus in addition to the
SS46, ,6S1O16 of greenbacks. there are
still outstanding $136. 119.2So of these
notes Of 1890 calling for redemption in
gold IL so required by their holders
That is to say, there are over S4Ss, 400.
600 of these gold obligations of the gov
ernment still uncanceled- which may be
DroSanted fn- radennnfion ar any riune