The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-02-13
In golden autumn or icy winter DR.
Prices Baking Powder is effective.
THE GOLD RESERVE.

Professor ]. Lawrence Laughing
Scheme to Keep Finances on it's Feet.
Prof. j. Lawrence Laughlin of the Chi
cago university, who has come to be an
acknowledged authority on political econ
omy, and is one of the best informed men
in the United States on monetary science,
has an excellent article in the Forum for
February, dealing with the contention
that the constant shrinkage of the gold
reserve is due solely to deficit in rev.
enue. He ably supports the argument
of the administration as opposed to that
of the Republican leaders, and shows
that the sale of bonds would have been
necessary though government receipts
and expenditures were running even, and
that the present condition has come
wholly from an overstock of silver and
paper money, causing distrust in the
ability of National finances.
Professor Laughln lays down this
axiom: Ihe treasury can obtain gold
only through taxation or by borrowing.
He shows conclusively that the first
source has been cut off, because the rev.
enues from customs that were formerly
paid i'll gold are now paid in greenbacis
or some OF the different paper representa-
tives of silver. From 1886 to July. 1890
the treasury receipts at New York from
all sources were paid from 20 to 90 per
cent in gold. Since July, 1894, gold pay
ments have wholly ceased. 1t follows.
therefore, that the only way for the gov,
eminent to get gold is to borrow it,
Though taxes should be doubled, no
more gold would come into the treasury
so long as those taxes were all paid in
paper and silver. And without the gold
in the treasury the paper and silver can
not be kept at par.
The situation is simply this: The gov
eminent takes silver and paper in pay
ment for all its dues, and in order to make
that paper and silver good must pay ont
gold whenever gold is demanded The
remedy suggested by Professor Laugh
lin to restore the shattered confidence
and bring about more wholesome condi-
tons is bold and aggressive policy.
He says provision should be made for a
full and sufficient gold reserve of at least
S2OOOO0,OOO by the sale of bonds. This
should be followed by giving notice of
the redemption on demand in gold of any
and all kinds of government paper and
silver money Mt numerous cities in diff
ferent parts of the United States, the can
collation. of all notes redeemed, and the
repeal of the act of May 81, 1878, for
bidding the retirement of United States
notes, and. finally, if notes are called for,
the issue of new notes only on the deposit
of gold, dollar for dollar in the treasury.
This suggestion is sound enough, but it
is not in the power of the administration
to carry it out. The silver senate stands
in the way, and continues to add to the
distrust by passing free coinage bills.
All plans for maintaining the public
credit and restoring confidence in Ma
tional finances must for some time be
confined in their scope to the cOnstitu-
tional powers of the administration
There is absolutely no hope of relief from
congress, but, on the contrary, what is
done must be done in spite of the sec
tional interests and party policies which
have tied up the National legislature
Nashville Banner.