The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-27

THE LABORS OF THE FOUNTAIN.
While no authentic information has
gone out concerning the financial plan
which Secretary Gage is ready to rec
ommend to congress, the best informed
arc limiting that it will consist of a bare
recommendation for a law providing
that when greenbacks have been pre-
scented for redemption they shall not be
paid out again except in exchange for
gold 1t would about fit with the per
formances of this administration on the
financial question if this were to turn
out to be the case. But what a ridicu-
labors of the Republican mountain.
The recommendation in itself is all
right as a palliative. 1t would have
answered the purpose we'll during the
raids upon the treasury in Mr.. CIeve-
lands administration if there had been
such a provision in force 1t would
have clecked, temporarily, the opera
ton of the endless chain" and, to
that extent, would have been benef-
cent AS a cure for financial Ills or as
a measure of currency reform" it is
about like administering a pink pill to
cure a broken leg. 1t is of piece with
the entire satitude Of the party toward
financial issues, which lets [ dare not
wait upon I would" 1t is confession
that the greenbacks are the central
source of danger in our financial sys-
TEN. If that be true, why not be bold
and manly enough to say so, and to
present plan for getting rid of them?
Why retain them and then devise safe
guards to prevent them from working
out the natural consequences of their
existence?
1t will be observed that this idea,
when analysed, means merely the re-
tiIement of the greenbacks eventually
by the accumulation of a sufficient
surplus out of revenue. At the present
rate of operation of the Dingley act,
there will be no surplus, but a huge
deficit When greenbacks are present
ed for redemption, therefore. how is tbs
demand to be met. except by the ac-
emulation of gold from former or
future bond sales? If it is met. we.
have then the greenbacks locked up in
the treasury. If they stay there, the
effect must be to lessen the amount of
currency outstanding by 1886, 900 600.
AS far as the fears of those who depre-
cate currency contraction" are con-
cerned. what conceivable difference
can it make whether the greenbacks
are stored in a treasury vault or are
cut to pieces and macerated in the
treasury's pulp machines? In either
case they are no longer available for
use as currency money, and the effect
upon the total monetary volume is ex-
aCtly the same Such a plan, conse-
quently. would invite exactly the same
criticism and opposition that attend the
proposition to retire the greenbacks al
together.
vi liz OIAACI manu-, II pIeSSlllS one
tremendous disadvantage as compared
with that. If the legal tenders should
be Cancelled and destroyed, there is an
end of them. They cannot rise to
threaten financial stability in the
future. If, on the contrary, they are
merely collected in the treasury vaults
and held there pursuant to the act
which it is proposed to put through
congress this winter, they can be re-
leased at any future time by another
act providing for it. They will not go
out Of existence but merely be hoard
ed as a perpetual standing menace. in
case congress orders their release.
That this is what must happen is evil
dent enough to any one who studies
the treasury statistics. The govern
ment is face to face, under the opera
ton of the new tariff act with a per-
manent deficiency of revenue. Sooner
or later this will have to be paid out of
money in the treasury, or by the sale
of bonds Unpopular as the issue of
new obligations increasing the volume
OF the national debt is sure to be. we
can have no doubt that, when this