The Dickinson press., 1896-01-18
Mr.. Lehmicke's Inning.

EQlCOr TRESS:-1n your laSC week s
issue you printed communication
signed "Subscriber." in which the
writer Indignantly attacks the
''Cleveland Administrator" for issu
ing $280.000.0O0 government bonds.
He states that that amount was bor.
rowed to run the government the last
three years.
Iwish to inform the gentleman.
that either he is ignorant on the sub.
ject, or is trying to mislead the read
ers of your paper.
Not one cent of that whole 280
millions. was used to pay the running
expense of the government. 1t was
borrowed by the administration to
he used in the gold reserve. and for
the redemption of gold bearing treas.
ury notes. His thrust at the admin.
istration is but a ''boomerang."
Let's see! What has caused the
deficit in the gold reserve! 1t is the
presentation to the national treasury
of its paper currency and their de.
manded redemption in gold coin.
presume that Subscriber is aware
that the circulation of national gold
bearing treasury notes, flor such is
the national paper money! far ex.
ceeds the 100 millions of gold that is
required by law to be held as y re.
serve for their redemption.
What is to prevent the depletion
OF tho reserve, if a sufficient number
of these notes are presented for re.
demption! Such is the case in the
present emergency.
AS soon as the gold was withdrawn
it had to be replaced and the only
means to accomplish it within the
power of the administration was
used.
The whole trouble lies, not with
the present administration, but il
the defects of the present form OF
the government treasury laws, which
were enacted by the republican gov
eminent years ago.
A system which is no more pro
lection to nations treasury reserve
than that, is of little use and demon.
strates the short sight of the men
who esta olished it. A system that
will allow a silver bearing note to be
redeemed in gold coin is dangerous
to the nation, when the stipulated
amount of the reserve is insufficient
for the redemption of its gold bear
ing notes.
The germ from which the present
difficulty sprang was sown in thu
Harrison administration. The rev
enue deficit in the present admins
tration is made good from the nation
al surplus (which is some 1926, 900, 900
and none Of the gold reserve IS useG
for current expenses.
"Subscriber" says: ''that if it wa,
to continue four years longer tn,
government would be bankrupt.
presume he means the issuing O.
bonds. If so he is mistaken again
for if the bonds are exchanged fo
gold and the gold exchanged for gold
bearing, treasury notes (which is tn,
only use it Ia put to,l the result wonl,
be that the government would have
no outstanding treasury notes ant
would have exchanged its non. bear
ing interest notes for interest bear
ing ones.
This again demonstrates the flaw
in the nations banking system. A
system that classifies its currency
and then fails to protect and sustain
the classification is dangerously i'm
perfect. Can not 'sSubscriber' tax,
his five silver dollars to the bank ant
exchange them for treasury note
and then demand of the treasury its
redemption in gold coin and if tn
reserve is empty compel the treasur.
to buy or borrow the yellow stuff fo
him!
Was it not the fisherman Act" ant
the "Harrison Bond Redemption
that reduced the gold reserve to tn
stipulated sl00,000,ooo and even be
low the $l00,000.0O0 mark? Was no
the reserve, for the first time in it
existence, below the $lOO,OOO,OO
mark in the latter part of the Harri
son administration?
No doubt ssSubscriber's'' outburs
of indignation was caused las he him
self states) by his having read some
thing,
q. e, LEHMICKI