The Beaver herald. [volume] (Beaver, O.T. [Okla.]) 1895-1923, 1897-12-16
THE CURRENCY PROBLEM.


10 withhold from II fair trifL
THE CURRENCY PROBLEM.
Tariff legislation having been settled by the
extra session OF congress- the question next
pressing for consideration Is that OF the cur
rency. The work of putting our finances upon
sound basis, difficult as II may seem, will appear
easier when we recall the financial operation OF
the government since 1854 ON the 30th day OF
June OF that year we had outstanding demand
liabilities In the sum OF t7gs s6s, 545 Al. On the
LIST of January, 1879. these liabilities had been
reduced to tii3 $3.50 ig5 ss OF our interest," bear
ing obligations the figures are even more
striking On July I, 1883, the principal OF the
interest bearing debt OF the government was
e., 3D. 33i, Goa On the LIST day Of July, 1893 this
sum had been reduced to 1855 U35 100, or an ag-
gregate reduction OF ,i,5i7. .2gi. l0S The inter-
est-bearing debt OF the United States on the
list day OF December, 1897 was sSi7, 360. 60
The government money now outstanding (De-
cember y consists OF S3i6, ,6Sl Ol6 OF United
States notes, ii07. .7e3 $50 of treasury notes is
sued by authority OF the law OF 1890, 1884 963 5Oi
OF silver certificates and i6i 2sO 76i of standard
silver dollars
With the great resources of the government
and the honorable example OF the past before
us we ought not to hesitate to enter upon n
currency revision which will make our 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 war TO 1893 makes
unreasonable and groundless any distrust either
| OF our financial ability or soundness, while the
| situation from 1893 to 1897 must admonish 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 rs remedy
| for the evil Before we can hud the true
| remedy we must apprehend the real evil II is
| not that our currency OF every kind Is not good,
governments pledge is out to keepit so, and
| that pledge will not be broken. However, the
| guaranty OF our purpose To keep the pledge
| will be best shown by advancing toward its
| fulnllment 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 dangerous menace to the
national credit
| II Is manifest that we 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 100000 OF
currency which the government by solemn en-
aotment has undertaken to keep at par with
gold. Nobody is obliged to redeem In gold but
the government The banks not required
TO redeem In gold The government Is obliged
to keep equal with gold all its outstanding cur
roncy 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. II can get
| II in no other way when II most needs IL The
government without any hXed revenue Is
pledged to maintain gold redemption. which Il
has steadily and faithfully done and which
under the authority now given 1t will continue
to do.
Redemption of Government Notes.
The law which requires the government after
having redeemed its notes to pay them out
again as current funds demands u constant re-
plenish1ent of the gold reserve. This IS espc-
clally so N times OF business panic and when
the revenues are insufficient to meet the cx-
penses OF the government At such times the
government has no other way to supply its de-
fct and maintain redemption but through the
| increase OF it's bonded debt Thus in the ad-
ministration OF my predecessor, SsGs Sl5,-
400 OF ~ 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 IL Is true that
| the greater part OF the proceeds of these bonds
were used to supply deficient revenues, con-
/
| gold reserve.
with our revenues equal to our expenses
| there would be no deficit requiring the issu-
| anee OF bonds But IL the gold reserve falls
below tiO0 900 0)0 how viii II be replcnished eX-
| cept by selling more bondsr Is there any Other
way practicable under existing law The Sc
| rious question then Is, shall we continue In,
policy that has been pursued in the past' tina
| Is when the gold reserve reaches the point o
| danger issue more bonds and supply the needle,
hall 40. fhar to nra
vent these recurring drains upon the gold re
server IL no further legislation is had, and IN
policy OF selling bonds Is 10 be continued, the
congress should give the secretary OF the treas
ury authority to sell bonds at long or short pc
riods bearing less rate OF interes
than is now authorized by law l ear
nestly recommend as soon as the receipt
of the government are quite SUFFICIENT TO pa
all the expenses OF the government. that whe
any OF the United States notes are presente
for redemption in gold and are redeemed
gold, such notes shall be kept and set apari
and only paid out in exchange for gold. Thi
is an obvious duty, II the holder OF the Unite
States note prefers the gold and gets II froI
the government he should not receive bac
from the government a United States not
, without paying gold in exchange for IT, III
reason for this Is made all the more apparer
when the government issues an interest-bearin
note 10 provide gold for the redemption q
United States notes-a n0n-intereSt bearin
: debt Surely IL should not pay them out agai
except on demand and for gold II they are pt
out In any other way they may return again I
be followed By another bond issue to redeei
them another interest bearing debt to redeei
Q q non-intcrest bearing debt
Providing Gold for business
I In my view IL Is OF the utmost importanC
. that the government should be relieved froi
: the business OF providing all the gold require
for exchange and export This responsible
is alone borne by the government without an
! OF the usual end necessary banking powers
o help itself The banks do not feel the strai
OF the gold redemption The whole strai
/, rests upon the government and the size OF n
, gold reserve In the treasury has come TO b.
with or without reason. the signal OF dang'
= or OF security. This ought 10 be stopped.
$ we are 20 have era Of prosperity In n
country with sufiicient receipts for the ei
peHses OF the government we may feel no In
mediate embarrassment from our present Gu