Democratic Northwest and Henry County news. [volume] (Napoleon, O. [Ohio]) 1894-1905, 1897-05-13
NGLEYLETS THECAT
OUT OF THE BAG.
What the Tariff Bill
Really Means.
IT IS TO CREATE A SURPLUS
REVENUE
TO SEIZE AND INBOUND
GREENBACKS.
Millions of Dollars Taken from the
People.
Whole Plot of the Republicans is
Revealed at Last.
BY JAMES CREELMAN.

WASHINGTON, May 9.-Chairman
Dingley, of the Ways and Means
Committee, in regard to how a suf1i-
cient revenue would protect the re-
served Treasury said:
"Where there is revenue sufficient
to pay the current expenses of the
| Government and leave a small sur
plus, and run takes place upon the
Treasury reserve by the presentation
Of greenbacks for redemption, these
notes do not have to be paid out to
meet deficiencies, and are held in the
Treasury either for exchange for
gold or for the payment of bonds.
The difficulty of the past four years
has been that we have had con-
slant deficiency, amounting to over
two hundred millions of dollars, or
fifty millions per annum, and to meet
this deficiency the greenbacks pres
ented and redeemed have immediate
ly been paid out again, thus placing
them in position requiring a second
and even a third redemption. Thus,
as a matter of fact, while we have
borrowed about two hundred and
ninety three millions of gold by issuing
bonds during the past four years, ostensibly
to maintain the gold reserve, yet, as mat
ter OF fact, over two hundred millions of
that has in the last analysis been borrowed
to meet the deficiency OF revenue and only
ninety-three millions to maintain the gold
reserve. The result has been that We have
had the endless chain of which Secretary
Carlisle has spoken, and this endless chain
is possible so long as there is sufficient rev.
enue to meet current expenditures.
WHAT CAUSED THE DISTRICT AND RUN.
"While def ,iency of revenue may not
have of itsef created the distrust which
caused run on the Treasury, yet it greatly
chronic. If we had had sufficient revenue
to meet the current expenditures of the
Government in the fiscal year beginning
July l, 1893, unquestionably sale of fifty
millions of bonds would havs been sucffiient
to maintain the reserve, as in that case the
redeemed greenbacks would have been kept
in the Treasury, and before fifty millions
had been redeemed there would have been
such scarcity of legal tender notes that the
holders of gold would have been glad to
present it to the Treasury and obtain the
more convenient greenbacks for use. This
is not a theory bee .use from 1879, when
we resumed specie payments, up to 1898,
during which period we had an abundant
revenue, there were comparatively few Unit
ed States notes presented for redemption in
gold, every one recognizing the fact that the
Government had it in its power to hold
these notes in its reserve to any extent, be-
cause none of them was required to meet
current expen 1itures.
NO DANGER OF aREENBAcKs BEING PRESENTED.
"Unquestionably If we can now scare
abundant revenue to meet all expenditures
aud leave small surplus to gradually re-
duce the principal of the war debt, there
will be little danger of any serious prolong-
ed presentation of greenbacRs for redemp-
ton. Not only because the fact that we have
solvent Government will aid in maintain
ing confidence and the credit of the Gov
ernment, but also because every one will
recognize the fact that the Government will
be able to hold greenbacks so long as there
is tendency for a run on the Treasury. 1t
Is for this reason that the revenue legisla
tion now pending, designed to secure suffi-
ent revenue to carry on the Government, is
of itself a fundamental step in maintaining
the credit of the Government aud averting
any danger of depreciation of the currency.