Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1896-01-12
MI the Successful Merchant Worth as to the TIITV r. NzTTT
Bt Advertising Medium Fotweh and they will say He UAZEl f.,

iuction of duties and secured the passage
Of law which reduced the revenue and
forced the treasury to enoroach upon tho
redemption fund to meet current obliga-
lions. II this policy IL adopted to compel
tho people Of the United States to surren.
der the best paper currency they have over
yet enjoyed, II viii fail. II ths rcvcnuo is
wanted TO meet current expenditures, 10
will DO furnished eIthsr by taxation or by
borrowing, or by both, but to create def
cicncies In order 10 compel tho oanoelia.
tion of United States notes by tho Issue OF
bonds will not, In tho language OF the
president, "incot with legislative approx.
ai1
Mr. Cleveland In his message complains
that when notes arc presented for redcmp.
tlon mud nre redeemed the law requires
that they shall belong TO tho United States
they shall not DO retired, cancelled or do.
stroyed, but they shall DO reisuued and
paid out again md kept in circulation.
Tho right TO reissue Is n necessary incl
dent TO n circulating note. Tho United
States does whit cvcry bank docs BY this
provision II furnishes note for olrcua.
,lon better than any othor yet devised by
mortal man.
He also says;
"Thc government was put In the anomn-
lous situation Of owing TO tho holders Of
its notes debts payable in gold on demand
which could neither hn retired by roceiv.
ing such notes In discharge of obligations
due the government nor cancelled by aolii.
al payment In gold. IL was forced to re-
deem without redemption and to pay with,
out aoquittanco."
II seems to mo that whom the govern.
ment redecms its motto tho former holder
Of tho note has no right to eay whether II
shall be rclssnod or not. Tho last sentence
In without a meaning. II tho United
States rcdcems Its note tho holder Inns
nothing more TO say, and when tho United
States pays out a note IL always takes u
receipt, which II an acquittnnce.
The president says that In April, 1903,
for tho first time since Its establishment,
this reserve amounted to less than 500.
600, 900, containing at that ,inte only sq7,-
oil $3.50. This significant statement made
US TO tho earliest days Of his adninlstra.
tion should have excited In tho mind OF
tho president an inquiry into the cause II
the reduction of the reserve. Tho real 70.
servo for redemption purpose was the pro.
ceods OF 500, 5O0, 600 bonds md no more.
In addition TO this reserve II IS necessary
20 have on hand TO meet current cSpendi-
tnres tho sum Of from ESQ, 00O, 600 10 si0,-
100000. At certain periods largo balance
Is accumulated to pny tho interest Of the
public debt and other large disbursements
for tho army and navy. Anyexcess should
be at once applied to the reduction of tho
principal Of the public dobt. This Inns Of
public policy was continued from the list
of January, 1870, TO the 18th OF March,
1893 including the FIRST administration OF
Mr.. Cleveland. During this period many
times more gold was deposited IN the
treasury than was pnld out. Largo amounts
Of gold were deposited In thc treasury for
gold certificates. Tho public debt was
largely diminished. Not shadow of
doubt had boon cast upon the ability Of
tho government to redeem It's notes or 60
maintain Its reserves. The minimum nov
or fell below 400, 600. 600.
The Resumption Law.
Nor would tho resSrrn bavo fallen below
that minimum during md after 1893 but
for the known policy OF tho president TO
reduce duties ON Imported goods, followed
soon by the enactment of the tariff law
now in force, resulting In largo rcduo.
tlou Of revenue and in deficiencies that
could only be pald out VI tho resumption
fund.
II is but fair TO state that tho rosump.
ton act Of 1875 did not segregnte the 70.
sumption fund from tho general balance,
nor did 10 provide that notes redeemed
should DO held in place for tho coin paid
out. The secretary Of the treasury in his
annual report 70 congress on tho 9th Of
December pointed out these defects In the
resumption law. He said;
1.-THE secretary expresses the utmost con.
fldonce that without new legislation tbo
entire amount Of United States notes now
authorized md outstanding con bo easily
maintained ut par In coin, even II tho pres
ont favorable financial condition should
change, but In order to accomplish this
tho coin reserve must DO kept unimpaired,
except by such payments as may DO made
from II In redemption notes. Notes re.
deemed should DO temporarily held in
place OF the coin paid cut, especially II II
appears that the call for colin Is greater In
amount than the ooin coming In due
course into the trensury or tho inints.
ut Is suggested that congress might dc.
flne and SGT apart tho colin reserve rs u
special fund for redemption purposes,
The general available balance Is now treat.
ed as such n fund, but ~ this balance
tuny, al tho discretion Of tho secretary Of
the treasury be unduly drawn upon for
The purpose OF payment OF bonds II would
appear advisable that congress prescribe
the maximum and minimum OF tho fund.
Congress neglected 10 enact into law tho
measures proposed but neither tho CON
gress nor the secretary Of the treasury an
tScipated that the time would come when
this fund would be applied TO pay current
deficiencies In the revenue amounting IN,
az years to si62 900 900.
The President and Mr.. Carlisle Corrected.
Both the president and the secretary
say that no provision WINS made for the
happening Of such deficiencies, aud say
their only resort was tho general fund Of
tho treasury composed OF tho resumption
fund and tho general balance IN the treas
ury. But It is duo TO truth to any that In
February, 1898, short time before tho
close OF tho Tifty-sAcond congress, when
MIR. Carlisle was member Of tho commit
too on flnnnce OF tho SENATE and 1t was
known TINT ho WINS 10 DO secretary OF tho
treasury and when the probabilities Of q
deficiency became apparent that commit
tea, upon my suggestion, with the appro-
bntion OF Mr.. Carlisle, reported an ninond-
mcnt to tho appropriation bill rs follows;
ITO enable the seer ltnry OF the treasury to
provide for and 10 maintain tho redoinp-
ton OF unitod States notos according to
tho provisions Of tho act approved Jan. ~,
1875, entitled nm Act TO provide for the ro-
sumption OF specie payments' $50. 200.
ard ut Tho discretion Of the secretary be Is