The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1896-01-17

amount of 1852, 315, 400 have been
issued to procure gold for the redemp-
ton of United States notes and Treas
ury notes, and the obligations of the
Government on account of the notes
still remain the same as at the begin
ming. The notes age redeemed, but
they are unpaid, and if our legislation
is not changed, no matter how often
they may be presented and redeemed
hereafter. they will remain unpaid. If
this policy of redemption and reissue
is continued, the Understanding
debt will be greatly increased, while
the interest bearing debt will not
be in the least diminished.
The disadvantages of such a system
are so obvious that it is hardly necessary
to enumerate them. The Government
has undertaken to keep an unlimited
amount of circulating notes equal in
value to gold coin, and, OF the same
time, it has no legal authority to COM
pei anybody to give it gold in ex-
change for the notes, or to pay gold
on any demand due it. The obligation
is all on one side and the power is all
on the other.
Although the amount of United
States notes is fixed OF 1915, 6S1, 900,
and the amount of Treasury notes out
standing is little over $40, 900, 900.
yet the total amount that may be pre-.
sented for redemption is unlimited.
because there is no restriction as to
the number of times the same note
may be returned to the Treasury and
exchanged for gold.
Our legal standard of value is as
sound as that of any country in the
world, and it we had such currency
system as would certainly guarantee
its permanent maintenance no Govern
ment OF people would command a
larger credit or realize greater bene-
fits from it than ours; but the great
investors of the world appreciate the
difficulties under which we ale labor
ing, and until those difficulties are re-
moved We cannot reasonably hope to
see perfect confidence restored at
home or abroad.
Every student of monetary science
and every practical man of business
knows that the fundamental vice in
our currency system is the legal tender
note, redeemable in coin By the Gov
ment and reasonable under the law.
There are other defects, but this is
fundamental and radical, and threatens
the stability of the whole volume of
our currency. So long as these notes
are outstanding the slightest diminu-
ton of the coin reserve authorized by
law for their redemption at once ex-
cites feeling of apprehension and
distrust in the public mind, affects
the values of all our securities, cur
tails investments and more or less
seriously embarrasses all the business
affairs Of the people.
How much has been lost to our peo-
pie on account of unavoidable huctua-
lions in the reserve it is impossible to
state, but all classes have suffered
more or less from the effects of these
fluctuations upon the markets for
products, upon wages and upon the
values OF ell kinds of property; and,
consequently. the condition OF that
fund is subject of constant attention
and anxiety throughout the country.
With an almost constant drain upon
it, with frequent and sudden demands
for very large sums for boarding or
for export, and with no certain means
of replenishing it, except by sales of
bonds, it is absolutely impossible to
maintain the reserve at any fixed
amount, and, therefore, impossible to
keep the public constantly assured Of
financial stability and safety.
In attempting to provide a circu.
lating medium consisting of Its own
notes, redeemable in coin on presen-
tation, and reasonable after redemp-
ton the Government Of the United
States is engaged in a business for
which it is wholly untitled, and which
was never for moment contemplated
by it's founders.
1t has right to borrow money and
issue evidences of the debt, and it has
right TO coin money and regulate its
7dluo"CHuU ~ 0OC1tSA0 willow SAAO AO4-
alive values of the metals shall be in
the coinage-but it was never contem-
plated that it should convert itself
into bank OF issue and furnish le-
gal tender paper currency for the use
Of the people. It has no department
or agency properly organized or
equipped for the transaction Of such
business, even if this were legitimate
Governmental function.
The Treasury Department ought to
be, and was intended to be, simply a
public agency for the management OF
the fiscal affairs of the Government
as Government, not bank-for the
collection and disbursement of the
public revenues for public purposes,
and for the supervision and control of
| sucn other executive matters as might
be intrusted to it by law. It clothed
with proper authority for these pur-
poses. but it is not clothed with
proper authority to conduct a bank
ing business, and the longer it IS re-
quired to conduct such a business the
greater will he the injury to the Gov
ernment and 70 the people.
No change that can be made in oul
currency system will afford the relic
to which the Government and the peo'
pie are entitled unless it provides fol
the retirement and cancellation OF the
legal tender United States notes. Any
| thing less than this will be simply g
palliative. and not cure. FOR The