Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1897-12-14
Mckinley's First Annual Address
to Congress.
C0NGRATULATES THE COUNTRY
Favors the Currency Plan Submitted by
Secretary Gage Cuban War Gets
Considerable Attention - Recognition
Not Advised-BImetalIlc Com mission
Other Countries.

met Monday:
To the Senate and House of Represen-
tatiyes: 1t gives me pleasure to extend
greeting to the LVth congress assembled
at the seat of government, with many of
whose senator's and representatives /
nave been associated in the legislative
service.
The extra session of this congress,
which closed July last, enacted important
legislation and while its full effect has
not yet been realized, what it has already
accomplished assures us of its timelnesS
and wisdom. TO test its permanent value
further time will be required and the peo-
PIE. satisfied with its operation and re-
suits thus far, are in no mind to with
hold from 1t a fair trial.
Finance Question Next.
Tariff legislation having been settled by
'fhe extra session of congress, the ques-
zion next pressing for consideration is
that of the currency. The work of put
ting our finance upon sound basis, diff
hcult as 1t may seem, will appear easily
when we recall the financial operations
of the government since 1866. On the Both
day of June of that year we had out
standing demand liabilities in the sum of
S72S, 86S, Ana. On the LIST of January, 1879,
these liabilities had been reduced to $443.-
1883, 1858. OF our Understanding obliga-
tions the figures are even more striking.
On July l, 1885, the principal of the inter-
est-bearing debt of the government was
1882 331 POS. On the 1st day of July, 1923,
this sum had been reduced to $685., O37, 100.
or an aggregate reduction of STA, 294 los.
The intereSt-bearing debt of the United
States on the LIST day of December, 1887,
was $847, 365.620. The government money
now outstanding December y consists of
S346, 6S1 ,01G of United States notes, $l07, 793-
$50 of treasury notes issued by authority
of the law OF 1890; $3S4, 1863, 5O3 of silver GER
tificates and SCI .2S0, 76l OF standard silver
dollars.
With the great resources of the govern
ment and with the honorable example of
the past before us, we ought not to hes
ftate to enter upon currency revision
which Will make our demand obligations
less onerous TO the government and re-
lieve our financial laws from ambiguity
and doubt. The brief review of what was
accomplished from the close of the war
TO 1893 makes unreasonable and ground
less any distrust either of our financial
ability or soundness while the situation
from 1898 to 1887 must admonish congress
OF the immediate necessity of so legs-
iating as to make the return of the con-
ditions then prevailing impossible.
Many Plans Are Proposed.
There are many plans proposed as a
remedy for the evil. Before we can find
true remedy we must appreciate the
swel evil. 1t is not that our currency of
every kind is not good, for every dollar
of 1t Is good; good because the govern
ments pledge is out to keep ii so, and
that pledge will not be broken. How
ever, the guaranty of our purpose to
keep the pledge will be best shown by
advancing toward its fulfllment. The evil
of the present system is found in the
great cost to the government of main
tanning the parity of our different forms
of money-that is, keeping all of them at
par with gold. We surely cannot be
longer needless of the burden this inn
poses upon the people. even under fairly
prosperous conditions, while the last four
years have demonstrated that IL is not
only an expensive charge upon the gov
eminent, but dangerous menace to the
national credit II is manifest that we
must devise some plan to protect the gov
eminent against bond issues for repeated
redemptions. We must either curtail the
opportunity for speculation, made easy
by the multiplied redemptions of our de-
nand obligations, or increase the gold re-
serve for their redemption. We have
$500 900, 900 of currency which the govern
ment by solemn enactment has under
taken to keep at par with gold. Nobody
is obliged to redeem in gold but the gov
ernment. The banks are not required to
redeem In gold. The government is obliged
70 Keep equal with gold all it's outstand-
ing currency 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 certeinty get gold is
by borrowing. 1t can get 1t in no other
way when it most needs ii. The govern
ment without any fixed gold revenue IS
pledged to maintain gold redemption.
which It has steadily and faithfully done,
and which under the authority now given
1t will continue to do
Gold Must BE Replenished.
The law which requires the government
after having redeemed its United States
notes to pay them out again as current
funds demands a constant replenishment
OF the gold reserve. This is especially
so in times Of business panic and when
the revenues are insufficient to meet the
expenses of the government. At such
times the government has no other way
90 supply its deficit and maintain redemp-
tion but through the increases Of its bond
ed debt. as during the administration Of
my predecessor, when $262, 3l5, 400 Of four
and a half 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
the proceeds of these bonds We're used to
supply deficient revenue, a considerable
portion was required TO maintain the gold
reserve. With our revenues equal TO our
expenses there would be no deficit re-
curing the issuance Of bonds. But If the
gold reserve falls below 900, how
will 1t be replenished except by selling
more bonds? Is there any other way
practicable under existing law? The seri-
Gus question then is, shall we continue
the policy that has been pursued in the
past-tbat IL, when the gold reserve reach
es the point of danger issue more bonds
and supply the needed gold or shall we
provide other means 10 prevent these re-
curing drains upon the gold reserve? II
no further legislation is had and the pol
fey of selling bonds is TO be continu d,
then congress should give the seer tary
of the treasury authority to sell bonds a
long or short periods bearing a less ra e
If interest than is now authorized by law
i earnestly recommend. as soon as the
receipts of the government are quite sufil-
,ient TO pay all the expenses of the gov
srnrnent that, when any of the United
States notes are presented for redemption
h gold and are redeemed in gold such
notes shall be kept and set apart. and
,nly paid out in exchange for gold. This
> an obvious duty. III
To Maintain the Reserve.
a. WsaNf 81 n