The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-01-04

deposited in the treasury With the pro-
vision OF law the scarcity of currency
would create such demand for IL that the
gold will be freely deposited in exchange
for the more portable and convenient notes
OF the United States. The resumption fund
should be segregated from all other moneys
OF the United States and paid out only in
redemption of United States notes.
with such provisions In the law the re-
sumption fund could not be invaded 20
meet deficiencies in the revenue. They
should be provided for by bonds or certifi-
Gates of indebtedness of small denomina-
tfons at low rate of interest, which would
be readily taken by the people through ma
tional banks, gubtreasuries and postofices.
As the term lawful money includes gold
coins. there is disposition by the timid
banks to convert their United States notes
demption reserve. This ought to be pre-
vented by a provision of law that the bank
reserve OF lawful money shall be United
States or treasury notes only. The re-
sumption fund Is the safeguard Of the
money of the people and it's use for any
other purpose is practical reputation Of the
public faith.
THE ENDLESS CHAIN"
1.-The President complains that the notes
are presented and paid, reissued and paid
again and again, making a continuous cir
cult. When did this circuit commence? The
only answer is when this administration.
supported by the last Congress. created a
deficiency. Why does the circuit continue?
1t is because the deficiency continues. The
government resorts to the financial policy
of Micawber 1t gives its bonds and thinks
the debt paid. But the circuit continues
The money received for current revenue is
paid to cover deficiencies, and is returned
for gold. and then more bonds. The Sec
rotary hopes that in two or three years
there will be no deficiency. What Is the
ground for this hope? Is IL that a new ad-
mlnlStratiOn 81
then the circuit will be broken? Why not
apply the remedy now?
IF deficiencies occur Congress should i'm
mediately supply the means TO meet them,
and Congress, and not the administration,
must be the judge of the mode and man.
ner OF relief. The President is OF the opin-
ion that the United States notes and treas
ury notes should be retired and give place
10 bank notes. This Is a question for Con-
gress to decide 1t is certainly not of that
opinion now, nor was the last Congress OF
that opinion. l believe that under existing
laws the aggregate sum OF United States
notes and treasury notes issued under the
act OF 1890, amounting TO about $3.50, 600, 900,
can be easily maintained at par with coin
If the two amendments l have mentioned
are adopted by Congress-
In conclusion Senator Sherman said: "A
careful study OF the systems OF banking.
currency and coinage adopted by the prn-
cipal nations or Europe convinces me that
developed by time, founded on the bimetal-
lie coinage of gold and silver. maintained
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 tpme equivalent security.
redeemable on demand 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
a ratable increase with the increase OF
population, always redeemable in coin sup
ported by ample reserve of coin in the
treasury, not to be invaded by deficiencies
of revenue, and separated by the subtreas-
ury system from all connection with the
receipts and expenditures of the govern
ment-such 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. l may on some proper occa-
sion hereafter give the reasons for my
faith in our present financial system. All |
ask now is that you will not disturb ii
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 savings of prudent labor or the
Accommodations of the rich. Time makes all
things even. Let us give to the executive
authorities ample means to meet the ap-
preparations you have made, but let us
strengthen rather than weaken our none
tary system. which lies at the foundation
of our prosperity and progress"