Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1897-12-09
THE CURRENCY QUESTION.
kssity of Putting Our Finance
(DOn n sound BASIS.

THE CURRENCY QUESTION.
(ssity of Putting Our Finances
Upon n sound Basis.
Tiff legislation having been settled by
Xtra session of congress, the question
pressing for consideration is that OF
currency. The work of putting our
ces upon a sound basis, difficult as it
seem. will appear when we recall
financial operation of the government
1866. On the 30th day of June OF
year, we had outstanding demand
titles in the sum of SIPS SOS Az Al. On
LIST day of July. 1879. these liabilities
been reduced to sii3.SS9 495 IS. of our
est-bearing obligations, the figurS $
even more striking. on July |, 1866,
principal of the interest bearing debt
he government was $2,3 35l POS. on
list day of July 1893, this sum had
reduced to S5S5, 057 100, or an aggre-
reduction of $l,7l7. 294, los. The inter-
bearing debt of the United States on
list day of Decemb r, 1897, was $751;
70. The government money now out
ding december u consists of $246,-
Is of United States notes; $l07 1913. $50
teasury notes issued by authority of
bet of 1890; 1854 1863, 504 of silver ccrtiti-
and SCI, 2S0761 of standard silver
RS.
th the great resources of the govern
and with the time-honored example
be past before us, we should not hest
to enter upon a currency revision
IN will make our demand obligations
onerous to the government and re-
our financial laws from ambiguity
doubt
e brief review of what was accom-
led from the close of the war until
makes unreasona BILE and groundlcss
distrust either of our financial abil-
r. soundness; while the situation from
TO 1897 must admonish congress of the
ediate necessity for so lcgielatins as
AXE the return of the conditions then
killing impossible.
ERE are many plans proposed as a
dy for the evil. Before we can find
true remedy we must appreciate the
evil. 1t is not that our currency OF
kind is not good, for every dollar
is good; good because the govern
Is pledge is out to keep it so, and
pledge will not be broken. How
the guaranty of our purpose to keep
pledge will be best shown by advanc-
oward Is fufillment.
Evil of the Present system.
evil of the present system is found
be great cost to the government OF
taining the parity of our different
of money; that is, keeping all of
at par with gold We surely cannot
niger needless of the burden this i'm
upon the people, given under fairly
berous conditions, while the past four
have demonstrated that it is not
an expensive charge upon the gov
lent but a dangerous menace to the
NAL credit.
Is manifest that we must devise some
to protect the government against
issues for repeated redemptions. w
either curtail the opportunity for
llation, made easy by the multiplied
nptions of our demand Obligations, or
ase the gold reserve for their re-
bton. We have 5000, 900, 900 of currency
h the government, by sole mn enact
has undertaken to keep a par with
Nobody is obliged to redeem in
but the government. The banks are
required to redeem In gold The gov
lent is obliged to keep equal with
all it's outstanding currency and coin
(ations, while it's receipts are not re-
ID to be paid in gold. They are paid
fery kind of money but gold. and the
means by which the government can,
certainty, get gold is by borrowing.
in get it in no other way when it most
it. The government without any
gold revenue is pledged to maintain
redemption, which it has steadily and
fully done, and which, under the au-
ty now given, it will continue to do.
law which requires the government,
having redeemed its notes, to pay
out again as current funds demands
Instant replenishment of the gold re-
:. This IS especially SO in times OF
hess panic and VIII n the revenues are
ficient to meet the expenses of the
rnment. AT such times the govern
has no other way to supply it's def
Ind maintain redemption but through
Increase of its bonded debt, as during
administration of my predecessor,
1862 ,315 400 of Az per cent bonds
issued and sold and the proceeds
to pay the expenses of the govern
in excess of the revenues and sustain
gold reserve. While 1t is true that
greater part of the proceeds of these
IS were used to supply deficient reve-
considerable portion was required
aintain the gold reserve.
cplenishinE the Gold Reserve.
tn our revenues equal to our expenses,
would be no deficit requiring the is
ce of bonds. But if the gold reserve
below Sl0O,000,000. how will 1t be re-
shed except by selling more bonds
ere any other way practicable under
Ing law? The serious question then
hall we continue the policy that has
pursued in the past-that is, when the
reserve reaches the point of danger,
more bonds and supply the needed
or shall we provide other means
fevent these recurring drains upon the
reserve? If no further legislation
I'D and the policy of selling bonds Is
continued, then congress should give
secretary of the treasury authority to
bonds at long or short periods bearing
IS rate of interest than is now author
by law. | earnestly recommend, as
as the receipts OF the government
quite sufficient TO pay all the expenses
Re government. that when any of the
Leo states notes are presented for re-
ption IN gold and are redeemed in gold
notes snail be kept and only paid out
enanse TOT gold. This Is an obvious
II the holder of the United States NOTE
rs soio from the government he should
receive pack from the government
,eo states note without paving gold
chahge Tor it. The reason for ibis ,s
81. me more apparent when the gov.
e"' issues an interest bearing deb,