The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1897-12-10
CURRENCY LEGISLATION.
Congress Should Not Hesitate to En-
ter Upon Revision.

Congress Should Not Hesitate to EN-
ter Upon Revision.
Tariff legislation having been settled by
the extra session of congress, the question
next pressing for consideration is that Of
the currency. The work OF putting our
finances upon sound basis, difficult as it
may seem, will appear easier when we re-
call the financial operations of the govern
,ment since 1866. On the 30th day of June
of that year we had outstanding demand
the 1st of January, 1879, these liza abilities had
been reduced to SAB, SS9, 495. IS. Of our in
even more striking. On July 1, 1855 the
principal of the interestobearing debt of
first day of July, 1893. this sum had been
reduced to $685., 0S7, 100, or an aggregate re-
duction of 81, IA. 294, Jos: The interest-bear-
day of December, 1897, was $S47, 1865, go The
government money now outstanding ODE
.cember u consists Of $S46. 6Sl ,O16 Of United
a ISSUED by authority of the law of 1890, 1884,
e63,503 of silver certificates. and SCI, $50. 761
of standard silver dollars.
With the great resources of the govern
ment, and with the honorable example of
the past before us, we ought not to hest
tate to enter upon currency revision
which will make our demand obligations
less onerouS to the government, and relieve
doubt
No Ground for Distrust.
The brief review of what was accom-
plished from the close of the war to 1893
makes unreasonable and grounCless any
distruSt either of our financial ability or
Soundness. while the situation from 1893
TO 1897 must admonish congress of the i'm
mediate necessity of so legislating as 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. 1t is not
that our currency of every kind is not good,
Tor every dollar of it is good; good because
the governments 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 it's fulfillment.
Evil of the Present System.
The evil of the present system is found in
the great cost TO the government OF main
:tainlng the parity of our different forms of
money-that is, keeping all of them at par
with gold. We surely cannot be longer
heediess of the burden this imposes upon
the people, even under fairly prosperous
conditions, while the past four years have
pensive charge upon the government but
"a dangerous menace to the national credit.
Must Provide Against Bond Issues.
1t is manifest that we must devise some
plan to protect the government against
bond issues for repeated reoemptionS. We
must either curtail the opportunity for
speeuia0n. MADE r easy 6g 6 ohe multiplied
increase the gold reserve for their redemp-
ton. We have S9OO,OO00OO of currency
which the government by solemn enact
ment has undertaken TO keep at par with
gold Nobody is obliged to redeem in gold
but the government: The banks are not
ment is obliged to keep equal with gold all
its outstanding currency and coin obliga-
to be paid in gold. They are paid in every
kind of money but gold, and the only means
by which the the government "; ,1 can with Ger
1t in no other way when it most needs il.
The government without any fixed gold
revenue is pledged TO maintain gold re-
demption, which it has steadily and faith
fully done, and which under the authori-
ty now given it will continue to do.
The law which requires the government
after having redeemed its United States
notes to pay them out again as current
of-the gold reserve. This is especially so
in times of business panic, and when the
revenues, are insufficient to meet the ex-
penSes OF the government. AT such times
the government has no other way to sup
ply its deficit and maintain redemption but
through the increase of it's bonded debt, as
during the administration of my predeces-
sor, when $262, 315 ,4O0 of Az 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 it is true that the
greater part OF the proceeds of these bonus
was used TO supply deficient revenues a
considerable portion was required 10 main
tain the gold reserve.
With our revenues equal TO our expenses
there would be no dehclt requiring me is
suance of bonds. But if the gold reserve
falls below SlOU,O00,OOO how will it be re-
plenished except by selling more BONDS:
Is there any other way practicable under
existing law? The serious question then iS
Sbou tSa continns tba Do1icdn - eiiS IA -
pursued in the paSt-that is when the gold
reserve reaches the point Of danger issue
more bonds ana supply the needed gold, OF
shall we provide other means to prevent
sheSe recurring drains upon the gold re-
serve? II no further legislation is had and
the policy OF selling bonds is to be contin.
Ued, then congress should give the secre-
tary of the treasury authority TO sell bonds
at long or short periods, bearing less IA te
of interest than is now authorized by law
An Obvious Duty.
l earnestly recommend soon as the
receipts OF the government are quite SUI
ficient 10 pay all the expenses OF the gov
eminent that when any OF the United
States notes are presented Tor redemption
in gold and are redeemed in gold such notes
shall be kept anu set apart and only paiu
Syious s6uty. il the holder of The iJniGsd
states note prefers the gold and gets II
from the government he should not receive
back from the government a United States
it The reason tor this is made ali the
more apparent when the government issues
for the redemption of United States notes
a MISUNDERSTANDING debt Surely ii
should not pay them out again except oil
in any other way they may return again. &c
be followed by another bond issue TO re-
deem them-another interest bearing deb
TO redeem a Misunderstanding debt.
Indorses Secretary Cages Plan.
The secretary of the treasury has out
linea a plan in great detail for the purpose
Of removing the threatened recurrence Of
a deDIeted gold reserve and saving US from
fufure embarrassment on that account. Is
fhis plan invite your careful considera
zion i concur with the secretary OF th'
freasury in his recommendation that ma
tionai banks be allowed TO issue notes K
The face value of the bonds which they
nave deposited for circulation, and that tbs
tax on Circulating notes secured by deposit
of such bonds be reduced 10 Sn ion b 81 on,
rpscommending that authority be given FOL
the establishment of nat 10 al banks witt
enable the smaller villages and agriculture
regions Of the country to be supplied o VIII
49, az issne If national bank Totes be re-