The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-01-04
PRECEDENT AND rREAsuaEa.


F"Efo~N' AMI t"NAokH&H.
4 rssr r.lr % n.aas~ the Rsnasc>s -
The 0evernment.
On the I'd day Of December last The
president OF the United States trans.
United TO congress message In which
the following statement appeared:
1T Is possible that the suggestion OF In
creased revenue a. a remedy for the din
culties we are considering may have orig
mated In an intimation or distinct ALE
CATION that the honda which have been
issued ostensibly 20 replenish our gold re-
s<rve we're really issued 10 supply insult
ficient revenue. Nothing can be further
from the truth. Bonds were issued 10 OBJ
tain gold for the maintenance OF our ma
tionai credit. A. has been shown. the gold
thus obtained has been drawn again from
the treasury upon United States notes and
treasury notes. This operation would have
been promptly prevented. II possible. but
these notes having thus been passed TO the
treasury they became the money OF the
government. like any other ordinary gov
eminent funds. and there was nothing TO
do but TO use them In paying government
expenses when needed.
AT no time when bonds have been is-
sued has there been any consideration OF
the question OF paying the expenses OF gov
eminent with their proceeds"
Later his secretary of the treasury. In
his report upon the condition OF the
finances OF the country, says as follows:
The total excess OF expenditures over
receipts from July !. 1885, 20 December 1.
1895. was $780, 221 .023: and OF this sum $22.-
462. IS was paid out OF the balance on
hand at this date In excess OF 100000 ,ooJ
and the remainder has been supplied by
the use OF United States notes and treas
thus received into the treasury IN ex-
change for gold coin. This act OF May 81,
1878, provided that when any United States
note may be redeemed or be received into
the treasury under any law, from any
source whatever. and shall belong TO the
United States. they shall not be retired.
Cancelled or destroyed. but they shall be
reissued and paid out again and kept In
circulation.
cit Is clear that when any OF these
notes have been redeemed they do not con-
stitute part OF the reserve fund. but be-
come part or the general cash assets or
the treasury. 10 be used In the same man
ner as other money belonging TO the gov
eminent"
We wondered how the president
would explain, in case he was called
upon to do so. the peculiar proposition
advanced by him that the greenbacixs
and the treasury notes redeemed by the
government became practically nom
existent. His secretary of the treasury,
however. to-day dispels all doubt upon
this point by directly contradicting Mr..
Cleveland and stating in so many words
that greenbacks and treasury notes re-
deemed by the government with gold
coin became part OF the general fund
and assisted TO decrease the deficiency
in the treasury. Doubtless the delay in
the appearance of the report of the Sec
rotary OF the treasury is due 10 an eff
fort on his part 10 explain the prcsi-
dents peculiar statements that the is
sue of bonds had nothing TO do with
the deficiency; yet finally. with more
courage than we had expected, he
comes out definitely and denies the
presidents statements of facts.
From conditions different from
those stated by the president, the sec
rotary comes virtually TO the same con-
clusion-that the greenbacks must be
retired because the people are fright
ened and the constant drain of gold Is
exhausting the treasury's supply.
Blind Cleveland! Unfortunate Car
lislcl They have not discovered that
from the day of the resumption Of
specie payments upon January !, 1879,
there was not an appreciable demand
for gold upon the treasury in exchange
for the legal tender notes up to and In
GLIDING January, 1898. when the re-
serve stood nc Si2l 900, 900. Why should
IA years OF republican management
we include the four years of Cleyelnnd's
first administration because during
that term a republican senate mnin-
tanned the public confidence in the in
telligcnce of the administration OF the
national goyernment--fail TO impair
the gold reserve. while on the other
hand few weeks of Clevelandism were
sufficient to send IL tumbling below the
500, 100000 mark.
Messrs. Cleveland and Carlisle blame
the greenbacks and the treasury notes,
utterly oblivious Of the fact that IL was
lack OF confidence in them that made
the people ask for gold for their green
backs and their treasury notes. Re
move the cause. say these blind engi-
neers of our finances. The people Will
certainly take their advice upon The
third day of November next.--Albany
Journal.