Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1896-01-12


cy nj that time existed, but II was mani.
fest that the policy OF the incoming I'D.
administration would crente deficiency. n
thnt amendment had become law, tho
secretary could easily have maintained the
reserve and mot deficiencies Us they occur-
rod by tho proceeds Of tho bonds described
In ".
Reduced Revenues Caused Deficiency.
Nor would deficiencies have occurred
had not the president md both houses II
tho Flfty.tbird congress- then In political
sympathy, united In passing law roduc-
Ing the revenue below expenditures for tho
Arst time since tho close OF tho war and
compelled thu executive authorities TO mp
ply n fund created for tho redemption ~
United States notes to meet the ordinary
expenses OF the government. This DEM
onstrated fact In tho source and foundation
Of nll our present financial difficulties.
do not wish TO critioiso tho sales OF
bonds authorized by the resumption act 10
mce5 these deficiencies Under tho oiruum-
stances the administration was justified In
doing this, even 10 the impairment OF tho
resumption fund but II ought frankly TO
say that tho onuso Of tho invasion Of tho
resumption fund was the deficiency of row
onue created by faulty thrift legislntlon by
tho last congress-.
Such deficiency IL discrcditahle to tho
United States, with Its vast wealth md
resources. Thoro is no difficulty I'm collect.
Ing by taxation oil md more money than
Is necessary for Its expenditures, 1t Is hu.
initiating to road In tho newspapers OF tho
day that our government Ia negotiating
for money from associated bankers, and,
like u distressed debtor In view of bank
u -. s.t
accumulated gold To relieve us from our
supposed financial dstross Tho truc rum-
cdy is to supply by taxation in some form
additional revenue, and, until this can he
effected, TO borrow from tho people Of tho
United Stntes enough money 20 cover past
md future deficiencies. This done, gold
will readily DO exchanged for United
States notes, MS was done from January,
1879, to the election ~ MIR. Cleveland
The two defects IN existing law relating
TO redemption arc mentioned by the pres
ident;
First, That tho notes presented for re-
domptlon must DO rolssued. 1t scoms from
the newspapers that hc has found tho pow
or to hold notes redeemed until thoy can
be exchanged for coin, u discovery that ha
should have mHd0 sooner.
Second. That tho resumption fund is
part OF tho general balance In the treasury
and may DO applied TO current e1pendi-
lures,
Congress neglected TO cure thu defects
pointed out by mo as secretary Of the
treasury In 1850, but hope will correct
them now nj the request Of tho president
II was not thon anticipated TINT def
cheney of rovenGe would occur or that N
II did occur tho government would use n
fund specifically pledged for another pur-
pose TO meet current liabilities.
Redemption OF Notes.
Notes once redeemed should only be re-
issued for gold coin, md such reissue
should bo mandatory whom coin is dcpos-
itod IN tho treasury. With this provision
OF law tho scarcity Of currency would
ofento such demand for It that gold would
DO froely deposited In exchange for tho
moro portable and convenient notes of tho
United States. Tho resumption fund
should he segregated from all other mon
cys Of tho United S,ntcs md paid cut only
In redemption OF United StAtcs notes
With such provisions In the law tho re-
sumption fund could not DO Invaded 10
meet do1cicnGiea In the revenue. They
should DO provided for 10y bonds or certin.
Gates OF indebtedness Of ANAL denomlns-
lions Mt low rate OF interest, which would
be readily taken by the people through ma
tional banks, subtraauries and postofllces
There seems to b0 u misrepresentation Of
the difficulties OF maintaining thu rcdomp-
tion Of United States notes The nominal
value Of these Ii t0t0. 6Sl ,Oi0. This Is the
reduced yglumo from tina maximum out
standing during tho civil wnr OF s4bO, 000,-
600. But this sum Of e946. 900, 900 Includes
all the notes lost and destroyed by casual
Nv since the first issue IN 1863. Tho amount
thus lost has been estimated from $40, 000,-
900 to SIC, 600 oeo reducing tho notes that
could be presented to s020, 900, 600 or less
Tho national banks In certain large oltios
nre required 20 keep on hand In lawful
monty OF tho United States ON amount
equal TO at loast 20 per cent OF the nggro-
gnto amount Of thor notes In circulation
and their deposits, and NIL other banking
associations are required 40 all times to
have ON hand In lawful money OF the
United stntes mn amount equal to ut loaso
Is per cont OF the aggregate amount Of
thor notes In circulation and OF thor do
poslt1.
AS tho torn 'tlawful money" includes
gold coin there Is n disposition by tiinld
banks TO convert their United States notes
into coin, thus aiding In depicting the re-
demption reserve. This ought to be pro-
vented by provision Of law that tho bank
reserve Of lawful money shall bc United
States notes or treasury notes only. Nm
tional banks AFRO tho creation md instrt.
monts Of tho government aud ought not
to be allowed to discredit the money with
which they oan redeem their own notes,
nor should the government itself be per-
mitted In any way to weaken tho credit
and confidence OF the people In their paper
money by using II for current expenses In
excess Of current revenues.
10 Is practical fraud for tho govern
ment 10 uso these notes for such PURPOSES
and II never hns bcon done except during
this administration. Every dollar thus
taken Is an impairment Of tho redemption
fund. 1t IL the misnpplcation Of fund
specially crrnted by law for another pur-
pose. Tho effect Is TO destroy confidence in
tho credit and snfety Of our paper curren-
cy. II has led tn tho demand for gold coin
for tho United States notes. do not bo-
llove that lima been thu design OF the exc
cutivo branch Of tho government, but that
has boon Its effect, and II fhonld be prevent
cd by the Immediate notion Of congress.
Tho resumption fusd ID the safeguard OF
the money Of tho people, mud Its uso for
any othor purpose Is n practical repudin-
tion OF the public faith
Tho president complains that tho notes
arc presented and paid, reissuod and paid
aRnin, mixing continuous circuit. Whom