The Providence news. (Providence [R.I.]) 1891-1906, 1896-12-23


treasury note that ever since the trst
Cleveland bond sale has been made the
scapegoat for all the financial ills that
have befsllep the administration, is q
government obligation. II is a note pay
able on demand in gold, OF course, for
its face amount. II is made legal ten
der by act of Congress.
President CLEVELAND and Secretary
CARLISLE have both contributed to
create a somewhat hazy public IMPRESSION
of mass of these greenbacks in circula-
tion that are continually being presented
for redemption ana then heing put into
circulation again thus forming what the
President is pleased TO call an 'end-
less chain" His point Is that inasmuch
as there is no way of restraining the pre-
sentation Of these demand notes and 10
law under which, once paid, they may De
destroyed, these green backs are kept GO
lux Ahto tho trtnsuty W thc iiohe uocA
for gold and then going out by the back
door and shortly presenting themselves at
the front wicket again for more gold.
And accordingly, VIXEN the gold reserve
was depleted the charge was MADE that
the greenbscks did it, although the
green backs had never done it before, and
bond issues were necessary to "maintain
the gold reserve" And because of the
damage that was thus possible by reason
of the endless chain it Is proposed to
cure all the revenue evil by retiring the
scapeg oats!
The greenbsc may or may not be a
desirable feature OF our currency but they
are harmless except the opportunity made
by such situation as that created by
the WILSON, Gorman tariff gives them an
aspect of additional menace to the ma
tional credit. As is proverpial of fire they
are a very bad master although q good
servant. But little knowledge of their
character, IL would seem, would convince
anyone that they are not the cause OF the
governments condition of the past thee
years although that condition opened the
way for them to exercise a seemingly ma
lign influence and give President CLEvE-
LAND particularly good chance to shie
bricks at them.
The very nature OF the greenback means
debt, an obligation. They were is
sued because the government at the time
had no coin to meet its expend nditures-so
the government put out it's promises to
paw. When the governments treasury is
In sound condition, these demand notes
are evidently preferable to gold but when
the governments finsnces fall behind a
"run on the bank" Is inevitable and the
green backs are presented ios exchanges In
hard substantial cash. But the moment
the government gets hold OF that green
back 1t has after all only paid the obliga-
tiion that the gresnback stood for. No
money has been lost, there is no business
deficiency In the transaction, the govern
ment has simply paid its debt and the
greenbaok Is in It's hands where no one
can get it except by giving the govern
ment dollars worth OF value for it.
Trouble only comes to the government,
a. 10 the individual. when 1t is compelled
to put out these demand notes to meet
it's obligations, o, rather to stave them
off and travel on its credit-when tho con-
dition of its receipts and expenditures
promises no surplus revenue on which
to draw when the notes are presented.
Accordingly the presentation OF the notes
draws on tho reserve-and bonds are is-
sued to "msintsin the reserve" Rut the
reserve evidently would need no "s,ain-
tsining'' were the government doing
OuSiness on paying OASIS.
Such is the function and such the tran
saction appertsining to tho green back.
With the treasury deficit, with the bond
sales, the green back has had absolutely
nothing to do. Their chief harm In the
currency Is much like the harm that
threatens the individual who, because Of
high credit is able to float good deal
Of "paper" beyond his actual quick as
sets. lie may not be able to meet 1t when
II is presented.
In that case he may feel like "cussing"
the notes. just as President CLEVELAND
has bsen doing ever since the deticienc cy
in the treasury compelled him to pay the
governments obligations in green back
promises, to pay only to nave them come
back Sfter gold which he had to issue
bonds TO raise.