The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1897-12-11
cunnENoY LEGISLATION.
Congress should Not Hesitate 20 EN-
ter Upon neyIsIOn.


Congress should Not Hesitate 10 En-
ter Upon Revision.
Tariff legislation having been settled by
the extra session OF congress, the question
next pressing for consideration u mat o.
finances upon a sound basis, difficult as II
may seem, will appear easier when we re-
call the financial operations or the govern
ment since 1866. On the S0th day OF June
Of that year we had outstanding demand
liabilities ia the sum Of S1s, 30 I'LL or
the lst OF January, 1879. these liabilities had
been reduced 10 8l3.ss9. i95. 81. OF our in
teTeat- bearing obligations, the nBures are
even more striking on July l. 1866. the
principal OF the intercst-bearing debt OF
the government was $3.50, 33l, POS. on the
first day Of July, 1898. this sum had been
reduced 70 5s5,U5ll00, or an aggregate re-
ing debt OF the United States on tho first
day OF December. 1891, was ao4l, 365,6-O. The
cember - consists OF s346. 1851 Ol6 OF United
States notes. 3l0l, 1873 $50 Of treasury notes
Issued by authority III the law OF 1890 $685.
OF standard silver dollars.
With the great resources OF the govern
ment, and with the honorable example OF
the past before as. we ought not TO hest
tate to enter upon currency revision
which Will make our demand obligations
less onerous 10 the government. and relieve
our financial laws from ambiguity and
doubt
No Ground Tor DIstrust.
The brlei rtNltM or what accom-
pllshed from the close Of the war 10 1893
makes unreasonable and grounCless any
dlstrust either Of our financial ability or
sOundness while the situation from 1899
TO 1891 must admouish congress OF The im-
mediate necessity OF so leglslating as TO
make the return OF the conditions then
plans proposed as a remedy for the evil
Before we can ma the true remedy We
must appreciate the real eyil. 1t Is not
that our currency Of every kind Us not good,
for every dollar Of Il is good; God because
the government pledge Is out to keep ID
20. and that pledge Will not be broken.
keep tho pledge Will be best shown by
advancing toward It's fulhlmcnt
EyI OF the Present system
The evil or the present system is found in
the great cost TO the government OF main
tanning the parity OF our different forms OF
mOney-that u, keeping all OF them AT par
needless Of the burden this imposes upon
the people, even under fairly prosperous
conditions, while the past four years have
demonstrated that Z y not only an eN-
pensiye charge upon the government but
n dangerous menace TO the national credit.
Must Provide Against bond Issues.
IL Is manifest that we must devise some
plan TO protect the government against
bond issues for repeated rCdcmptlons. We
must either curtail the opportunity for
speculation, made easy by the multiplied
rcdcmptlOns OF our demand obligations, or
Increase the gold reserve for their rcdcmp-
lion. We have S5O00QO.0O0 OF currency
MNlCu the government hy Sole mn enact
ment has undertaken TO keep at par with
gold. Nobody Is obliged TO redeem In gold
but the governments The banks are not
required to redeem In gold. The govern
mcnt Is Obliged 70 Keep equal with gold all
It's outstanding currency and coin obliga-
tions, while itS receipts are not required
20 be paid In gold. They are paid IN every
kind Of money but gold. and the only means
by which the government can with cer-
tainty get gold Is by borrowing. IL can get
Il In no other way when IL most needs la
The government without any fixed gold
revenue II pledged TO maintain gold re-
demptlon, which II has steadily aud faith
fully done, and which under the authori-
~ now given Il Will continue TO do.
The law which requires the government
after having redeemed its United states
notes to pay them out again as current
funds demands constant replcnishment
OF the gold reserve. This Is especially so
in times OF business panic, aud when tie
revenues are insufficient TO meet me ~
penses u the government. AZ such times
the sosernment has no other way to sup
ply It's deficit and maintain redemption In
Through the Increase OF It's bonded debt. a.
during the administration OF my predeces-
sOr, when So. $40, iUU or a. per cent honda
were issued anu Sold and The proceeds used
10 pay the expenses Of the government IN
excess OF the revenues and sustain fhe
gold reserve. While 1t Is true tbaf the
greater part 81 the proceeds or these bonus
was used 70 supply deficient revenues h
consiueraDle portion was required 10 maiu-
tain the gold reserve.
With our revenues equal to our expenses
there would be no deficit recurring me Is
suance Of bonds, But In the gold reserss
falls below NO0,N0,O00 how viii il be re-
fieniianeu sAe,pt ny selling more bonds?
~ lncFe any other way Practicable under
existing iawY The serious question Then ~
bhall We continue the policy that has been
reserve reaches tho point or danger issue
more bonds and supply the needed gold. er
shait We piVNlue other means 20 prevent
these RECURRING drains upon tho gold re-
server II no further legislation is had' ana
the policy OF selling bonds Is 10 be conIin
ued, then congress should give the secre.
tary OF the treasury authority "a aau ho,'lt.
az Iona or short periods. bearing a less rnfe
VI interest thah u now authorized BY law
An Obvious Dnty.
! earnestly recommend as soon "a Tho
receipts OF the government are quite sue
ncient 10 pay all the expenses OF NE GOV.
eminent That when any OF The Ii9it,g
States notes are presented Tor rtutfaption
IN gold and are redeemed in gold such notes
shall be Kept ana set apart ana only paid
yious duty. II the holder OF The pniGea
States note prefers the sold and gets a
from The goyernmenI he should no, receive
back from the government United states
note without paying gold IN exchange Tor
t. The reason ior This Is made All lie
mere apparent when the government issues
an interest bearing debt 10 provide god
To- the redemption Of United States notes
a nouinterest- bearing debt surely A
eh uld not pay them cut again eNccpt on
demand and Tor gold IL they are put out
~ any other way they may return again. TO
be followed by another bond issue TO re-
de nm thcm-another interest bearing debt
20 redeem a nonlnterest-benring debt.
IndOrses secretary Cages plan.
she secretary Of the treasury has out
lilCu plan IA great detail FOR the purpose
OF removing the threatened recurrence Oh
n icplctCd gold reserve und saving Us from
future embarrassment on that account. 40
this plan l Invite your careful CouslqCra-
tim. 1 concur with the secretary of The
treasury ln his recommendation that ma
tiunal banks be allowed TO issue notes 10
the face value or the bonds which they
have deposited for circulation, aud that the
tax on cirCulntinE notes secured ~ deposit
Of such bonds be reduced TO 0uc-ualf % one
per cent. per annum. l also join him ln
Recommending that authority be given FOR
the establishment Of national banks With
a minimum capital or $4,000 This will
enable the smaller Villages and agricultural
regions OF the country 20 be supplied with
currency 90 meet their needs. ] recommend
that the Issue or national bank LOtCs be re-