The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-01-06


discredlt the money with which they can
redeem their own notes, nor should the
government Itself be permitted In any way
to weaken the credit and confidence Of the
people In their paper money by using II
for current expenses In excess of culren;
revenues.
Practically q Fraud.
1t is a practical fraud for the govern
ment to use these notes for such pur-
p0st and 1t neTsr has been done eSIepr
thus taken Is an impairment OF the re-
dcmption fund. II Is the misapplicaton OF
fund specially created by law for an
confidence in the credit and safety OF our
paper currency. 1t has added to the de.
mand for gold coins for the United States
notes. l do not believe that has been the
ernment, but that has been Its effect, and
should be prevented by the immediate ac-
ton Of congress. The resumption fund Is
the safeguard OF the money OF the people
and its use for any other purpose Is a
practical repudiation of the public faith.
The president complains that the notes
are presented and paid. reissued and paid
again. making continuous circuit When
answer Is when the administration, sup
ported by the last congress, created de-
ficiency. Why does the circuit continue?
1t is because the deficiency continues. The
cy Of Micawber. 1t gives its bonds and
thinks the debt paid. But the circuit con-
tinues. The money received for current
revenue Is paid to cover deficiencies and
The secretary hopes that in two or three
years there will be no deficiency. What
Is the ground ~ this hope? Is 1t that
new administration will provide more rev.
enue and then the circuit will be broken?
Why not apply the remedy now?
/ believe that under existing law the
aggregate sum Of United States notes
and treasury notes issued under the act
Of 1890, amounting to about $46O, 900, 900, can
be easily maintained at par with coin II
the two amendments have mentioned are
adopted by congress. These notes are
legal tender for all debts, public or private.
out interest and without other material
cost to the government than the interest
or the cost of the coin on bullion held In
the treasury to redeem them. They are
Of paper money that has been devised.
They have all the sanctions of law and
all the security that has been or can be
given by our bonds. They have the pledge
deemed In coin The substitution Of these
notes for state bank paper money Is one
OF the greatest benefits that has resulted
from the civil war. These notes have all
had the sanction, protection and security
that has been or can be given to our ma
tional bank notes, with the added benefit
that the large saving derived from them
inures to the people of the United States
instead Of the bankers.
Free silver Dangers.
The disposition of silver certificates Is
n much more serious problem. They are
In express terms redeemable In silver dol
lars. While the silver dollars are main
tanned at par with gold 1t would seem that
there was no injustice In paying the silver
dollars for silver certificates. Then comes
up the question Of free coinage Of silver,
which ! regard as the most dangerous pol
do not wish to mingle with the pressing
recommendation Of the president In his
last annual message, that authority be
given the secretary of the treasury 10 Is
low rate of interest, payable by their
terms In gold, for the purpose of MAIN
talning sufficient gold reserve and also
for the redemption and cancellation or
treasury notes issued for the purchase of
silver under the law Of $780," He recon-
mends the exchange of gold interest.
bearing bonds for the legal tender notes Of
national bank notes as our only currency.
He is supported In this by large and infiu-
entail classes of our fellow citizens, most
of them engaged In banking or classed as
capitalists. Their arguments mainly rest
upon the difficulties encountered by the
administration In naming q reserve in
coin to redeem United States notes. They
forget that during a period of fourteen
years, when the revenues of the govern
ment exceeded the expenditures, and when
the public debt was being reduced with un-
exampled rapidity, there was no difficulty
In maintaining our notes at par with coin.
There Is scarcely doubt but that In all
probable conditions Of trade or finance,
except the contingency Of war, the whole
mass of the United States notes now in
circulation can be maintained at par with
coin IL It 1t supported by a reserve of gold
coin or bullion or silver bullion In due pro-
portions equal to one.third or One-fourth of
the amount OF such notes.
Our system Excellent.
A careful study Of the systems of bank
ing, currency and coinage accepted by the
principal nations of Europe convinces me
that our system. when cured OF a few de-
fects developed by time, founded upon the
bimetallic coinage of gold and silver main
tained at par with each other, with free
national banks established In every city
and town of Importance in the United
States issuing their notes, secured beyond
doubt by United States bonds or some
equivalent security redeemable on de-
mand In United States notes and the issue
Of an amount Of United States notes and
treasury notes equal to the amount now
outstanding with provision for national
Increase with the increase of population,
always redeemable In coin supported by an
not to be invaded by deficiencies of rev.
enue and separated by the sub-treasury
system from all expenditures of the gov
ernment-such a system would make our
money current In commercial circles In
every land and cline, better than the best
that now exists In Europe, better than
that Of Great Britain, which now holds the
purse strings Of the world
1t Is not given to man to foresee with
certainty the future, but II we may Judge
the future by the past the growth and
progress Of our country will continue the
diversity and extent of our Industries will
expand. the vast plains of our broad ter
ritory will be teeming with population.
The rapid growth Of our cities, unexam-
pied in the history Of mankind. will con-
tinue. A century spans the life Of the
Republic, what will the next century do?
l have seen great changes In my life, but
those who come after us will see greater
changes STILL ] may on some proper occa-
sion herafter give the reason for my faith
in our present financial system. All ask
now is that you will not disturb 1t with
your deficiencies, you will not rob 1t of
its safeguards. you will not return to the
days of wildcat money. you will not
lessen the prudent labor or the accumula-
tions or the rich. Time makes all things
even. Let us give to the executive author
tiles ample means to meet the appropria-
tions you have made. but let us strength
en-, rather than weaken our monetary sys-
tenn, which lies at the foundation of our
prosperity and progress.
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