The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-12-22

! the public a reasonable assurance that nc
default will be made in the discharge OF
our public obligations. The difficulty OF
procuring GOLD for this purpose is greatly
| increased at 1he very times when its pos
session is most necessary, and consequent
| ly the government being OF such times de-
| prived OF gol1 receipts from the ordinary
sources OF revenue is compelled to issue
and sell bonds upon terms less favorable
than might lie procured under other cir
cumstances. : The annual interest upon
the public debt, which has been made
to procure and maintain the reserve,
amounts to S16.312,6 GIG, and the aggre-
gate of principal and interest at the ma
turity Of the bonds will be more than
$641 600, 000,: and yet the. notes them
selves, on account of which this enormous
indebtedness: has been incurred, will, il
our present policy is maintained, remain
unpaid But it cannot be safely assumed
that this wilI be the whole measure of the
burden imposed upon the people, because
if provision is not made for the cancel
lation of this currency, it is reasonably
certain that emergencies will hereafter
arise from time to time, compelling the
issue and sale of additional bonds to re-
plenish the reserve, thus increasing our
interest bearing debt, without in the
least diminishing our obligations on ac-
count Of the. notes.
The maintenance of policy which ne
cessarily imposes upon the government
the burden Of furnishing gold at the
public expense to all who may demand it
for use or boarding at home, or for ex-
port to other countries, cannot be justified
upon any ground Of expediency or sound
financial principle, and even if the periodi-
cal and frequently recurring demands for
gold did not weaken the foundations of
our entire currency system, thus impair
ing and depressing business, it would
nevertheless be the duty of all who are
charged with any degree of responsibility
for the adoption of proper financial meth
DDS to insist upon the reformation of our
laws on the subject at the earliest posi-
BILE day. The issue and redemption OF
circulating notes is not a proper function
Of the Treasury Department or of any
other department of the government
While the government has power to
borrow money, it is not its duty to issue
public obligations merely for the pur-
pose Of providing a paper currency for
use in the transaction of business, or has
it the constitutional power in my opinion
to make its promises legal tender in the
payment Of private debts.
$50 long as the United States notes
remain in circulation, question as to the
mode and manner Of their redemption and
as to the means of procuring and main
tanning a coin reserve for that purpose,
will be made political issues and so long
as these questions remain in politics,
public confidence in the stability of our
currency must be more or less disturbed.
Even if the agitation of these questions
affected only the value of United
States notes, consequences would be suf-
ficiently serious to justify a demand for
their permanent retirement, but the
character Of our currency. is such that
whatever creates a doubt or suspicion
concerning their prompt redemption in
gold on presentation necessarily impairs
confidence lin the whole volume of our
circulation and inhicts much greater in
jury upon :the public than can possibly
result fronE the failure Of ordinary bank
ing Institutions TO redeem their paper.