Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1897-12-15
ncKINKEY'S EFFORT.
Approves the Monetary Scheme of
Secretary Gage.

| approves INC SCneHne OI
Secretary Gage.
Washington, D. C.,-The message
of President Mckinley is a lengthy
document. and is taken up largely
with explanations of why certain
things have not been done, and as to
methods of doing nothing with refer
ence to certain questions now confront
ing the people
AS the currency and Cuban ques
tons are the only ones discussed of
special Importance, we give the rec
concentrations on those questions in
full:
''1t is manifest that we must devise
some plan to protect the government
against bond issues for repeated re-
demptions. We must either curtail
the opportunity for speculation, made
easy by the multiplied redemptions of
our demand obligations, or increase
the gold reserve for their redemption.
We have $9OO,O0O,OOO of currency
which the government by solemn en-
actmeut has undertaken to keep at par
with gold. Nobody is obliged to re-
deem 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 out
standing currency and coin obliga-
tions, while it's receipts are not re-
quired to be paid in gold. They are
paid in every kind of money but gold,
and the only means by which the gov
ernment can with certainty get gold
is by borrowing. 1t can get it in no
other way when it most needs it.
GOVERNMENT AT A DISADVANTAGE.
The government without any fixed
gold revenues is pledged to maintain
gold redemption, which it has steadily
and faithfully done, and which, under
authority now given, it will continue
to do.
The law which requires the govern
ment after having redeemed its notes
to pay them out again as current funds
demands a constant replenishment of
the gold reserve. This is especially so
in time of business panic and when
the revenues are insufficient to meet
the expenses of the government.
AT such time the government has no
other way to supply its deficit and
maintain redemption but throught the
increase of its bonded debt, as was
done under the administration of my
predecessor, when $262, ,315, 400 of AZ
per cent. bonds were issued and sold
and the proceeds used to pay the ex-
penses of the government in excess OF
the revenues and sustain the gold re.
serve. While it is true that the great.
er part of the proceeds of these bonds
were used to supply deficient revenues
a considera bic portion was required tc
maintain the gold reserve.
MUST ISSUE BONDS.
With our revenues equal to our ex
penses, there would be no deficit, re
quiring the is uance of bonds. But il
the gold reserve falls below 500, 600,
600 how will it be replenished except
!: by selling more bonds? Is there any
other way practicable under the exist
ing 1aw7 The serious question ther
is, shall we continue the policy tha
has been pursued in the past, that is
when the gold reserve reaches tn,
point of danger, issue more bonds ant
; supply the needed gold, or shall w,
provide other means to prevent thes,
: recurring drains upon the gold reserve
| If no further legislation is had, an,
? the policy of selling bonds is to b.
continued, then Congress should Civ
: the Secretary of the Treasury authori
i ty to sell bonds at long or short per
E iods, bearing less rate of interes
S than is now authorized by law.
D 1 earnestly recommend as soon a
S the receipts of the government ar
quite sufficient to pay all the expense
e of the government that when any Q
e the United States notes are presente
y for redemption in gold and are r.
y deemed in gold such notes shall b
+ kept and set apart, and only paid OF
d in exchange for gold. This is a
e obvious duty. If the holders of til
United States note prefers the gol
d and gets it from the government h
e should not receive back from the go,
n ernment United States note witho,
d paying gold in exchange for it. tt
, reason for this is made all the MOI