The herald., 1897-12-07
THE CURRENCY
The Disease Is Certain-Some RENE.
dies Proposed

Tariff legislation having been settled
bythe9Xtra session of Congress. the ques-
tion next presented for consideration is
that OF the currency. The work Of put
ting our finances upon a sound basis
difficult as 1t may seem, will appear
easier when we recall the financial op-
eratiohs Of the government since 1866.
On the 30th day of June of that year we
had outstanding demand liabilities In the
sum of SIPS, 1856, ,447.41. On the 1st Of jan
uary, 1879, these liabilities had been re-
duced to $443, ,SS9, 1865. or our interest
bearing obligations the figures are even
more striking. On July /. 1866, the prin-
cipal of the interest bearing debt of the
government was 81 .331, POS. On the
lst day Of July, 1898. this sum had been
reduced to $685., ,037, 100, or an aggregate
reduction Of $l,717,29 ,10s. The Interest,"
bearing debt Of the United States on the
lat OF December. 1897, was sS47 1865, $50.
The government money now outstanding
December ~ consists Of s346, ,6S1 ,016 OF
United States notes, $1O7, ,793, ,2S0 Of treas
ury notes Cissued by authority Of the
law Of 1S9O), $3S4, ,963, ,5O4 Of silver certifl-
Gates and s61,2S0,761 of standard silver
dollars.
WIN INC EIcdJ TSSOuECcs3 VI tilc SsOt
eriiment and with the tlme-honored
example OF the past before us, we ought
not tn hesitate to enter upon currency
revision which will make our demand
obligations less onerous to the govern
ment ana relieve our financial laws from
ambiguity and doubt.
The brief review Of what was accom-
pltshed from the close Of the war until
1893 makes unreasonable and groundless
any distrust either of our financial ability
or soundness, while the situation from,
1893 to 1897 must admonish Congress of
the immediate necessity of so legislating
cs to make the return Of the conditions
then prevailing impossible.
There Are many plans proposed as a
remedy for the evil. Before we can find
the true remedy we must appreciate the
real evil. It Is not that our currency OF
livery kind is not good, for every dollar
tf It is good-good because the govern
n1ent's pledge is out to keep it 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 fulflllment.
THE REAL EVIL
The evil ofsthe present system Is found
IN the great cost to the government OF
maintaining the parity of our different
forms. Of mopey--that Is, keeping all OF
them at par with gold. We surely cam
moi be longer needless of the burden
this imposes upon the people, even under
fairly prosperous conditions, while the
past four years have demonstrated that
u ID not only an expensive charge upon
the government, but dangerous menace
"a the national credit.
tits 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 multi
piled redemptions of our demand obliga-
tons, or increase the gold reserve for
their redemption. We have 5000, 600, ,OOt
OF currency which the government by
SOLEMN ennctment has undertaken ia
keep ct par with gold Nobody is
obliged to redeem In gold but the govern.
niept The banks are not required to
redeem In gold. The government Ii
Obliged to keep equal with gold all its
outstanding currency and coin obliga-
tionA white IT. receipts are not required
t. % paid In gold. They are paid IN
every Kind Of money but gold, and the
only means By which the aoyernmeni
can With csrtsinty set gold = BY bor.