The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1897-12-10
THE CURRENCY PROBLEM.

THE CURRENCY PROBLEM.
Tariff legiS. ation having been settled by the
extra session OF congress, the question next
pressing for consideration is that Of the cur
rency-T The work Of putting our finances upon
sound basis, difficult as IL may seem, will appear
easier when we recall the financial operation Of
the government since 1861 On the 30th day of
June of that year we had outstanding demand
liabilities in the sum Of S7!8 1868. 547 H. On the
1st OF January, 1879. these liabilities had been
reduced to sI43 SS9 495. 49, OF inter st-bear-
ing obligations the figures are even more
striking. On July 1, 1855. the principal of the
interest bearng debt of the government was
1882 331 2OS On the LIST day Of July 1893. this
sum had been reduced to 1885 u37. lUO. or an ag-
gregate reduction of La. 1914 lOS. The inter-
est-bearing debt Of the United States the
LIST day Of December 1897, was 8I7 365. go
The government money now outstanding de-
cember ID consists of s346. 6S1, 0l6 of United
States notes. .107, 793.2S0 Of treasury notes is
sued by authority of the law Of $780, 3S4 9j3, 5O4
of silver certificates, and 81, $50 76l Of standard
silver dollars.
and the honorable example OF the past before
us ought not to hesitate to enter Upon
currency revision which will make demand
obligations less onerouS to the government and
relieve our financial laws from ambiguity and
doubt The brief review of what was accom-
plished from the close of the to 1898 makes
unreasonable and groundleSS any diStruSt either
OF our financial ability or soundneSS, while the
SITUATION from 1898 TO 1881 must aQmOnlSn con-
gress of the immediate necessity Of so legislat-
ing as to make the return of the conditions
then prevailing impossible.
There are many plans proposed as remedy
for the evil Before we can find the true
remedy we must apprehend the real evil 1t is
not that our currency Of every kind is not good.
for every dollar of it is good; good because the
governments pledge is out to keep it so, and
that pledge will not be broken. However, The
guaranty of our purpose to keep the pledge
rx,tn hncN cl,0 NV Aryov Nd tic
fulfllment The evil Of the present system is
found in the great cost Of the government of
maintaining the parity Of our different forms
of money, that is. keeping all Of them at par
with gold We surely cannot be longer heed
less Of the burden this imposes upon the peo-
pie even under fairly prosperous conditions,
while the past four years have demonstrated
that it is not only an expensive charge upon the
government, but a dangerous menace to the
national credit
It is manifest that must devise some plan
to protect the government against bond issues
for repeated redemptions We must either
curtail the opportunity for speculation, made
easy by the multiplied redemptions Of our de-
mand obligations or increase the gold reserve
for their redemption. We have 9O.0JOUOO of
currency which the government by solemn en-
actment has undertaken to keep at par with
gold. Nobody is obliged to redeem in gold but
the government The banks are not required
to redeem in gold. The government is obliged
to keep equal with gold all its outstanding cur
rency and coin OBLIGATIONS. while its receipts
are not required to be paid in gold They are
paid in every kind Of money but gold. and the
only means by which the government can with
certainty get gold is by borrowing It can get
1t in no other way when it most needs it The
government without any fixed revenue Is
pledged to maintain gold redemption, which it
has steadily and faithfully done and which
under the authority now given it will continue
to do.
Redemption Of Government Notes.
The law which requires the government after
having redeemed its notes to pay them out
again current funds demands q constant re-
plenishr1ent of the gold reserve. This is eSpe-
clally so in times of business panic and when
the revenues are insufficient to meet the ex-
penses of the government AT such times the
government has no other way to supply its de-
felt and maintain redemption but through the
increase of it's bonded debt Thus in the adj
ministration OF my predecessor. sS6S. 3lo.-
40J of AZ per cent bonds were issued and sold
and the proceeds used to pay the expenses OF
the government in excess Of the revenues and
sustain the gold reserve. While it is true that
the greater part of the proceeds Of these bonds
were used to supply deficient revenues q con-
siderable portion required to maintain the
gold reserve.
With our revenues equal to our expenses,
there would be no deficit requiring the iSsu-
1nce of bonds But if the gold reserve falls
below s1OO UO0. 90 how will it be replenished ex
cept by selling more bonds: Is there any other
way practicable under existing law: The Sc
rious question then is. shall we continue the
policy that has been pursued in the past: that
is when the gold reserve reaches the point Of
danger issue more bonds and supply the needed
gold or shall provide other means to pre-
vent these recurring drains upon the gold re-
serve: II no further legislation is had and the
policy of selling bonds is to be continue ID then
congress should give the secretary OF the treas
ury authority to sell bonds at long or short Pc