Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1897-12-08


THE CURRENCY QUESTION.
President Reviews Existing Condi-
tions--Reco1n1nenda
The work of putting our finances upon
a sound basis, difficult as it may seem, Will
appear easier when we recall the financial
operations Of the government since 1866
On the Goth day Of June Of that year we
had outstanding demand liabilities in the
sum of SIPS, SOS, 447.41. On the first Of jan
uary, 1897, these liabilities had been re-
duced to $443, S89, 1888. Of our interest
bearing obligations, the figures are even
more striking. On July 1, 1856, the prin-
cipal of the interest-bearing debt Of the
government was $2,332, 1881, POS. On the
first day OF July, 1893, this sum had been
reduced to $685., OBJ 100, or an aggregate re-
duction Of 81 IA, 294, 108. The interest-bear-
ing debt of the United States on the LIST
day Of December, 1897, was 1884,, 1865, $40.
The government money now outstanding
dec. u consists Of $346, 6S1 ,016 CT United
States notes, $107, 793 ,28O Of treasury notes
issued by authority of the law OF 1890,
1884 963, 503 of silver certificates and $751;,
230,761 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 a currency revision
which will make our demand obligations
less Cnerous to the government and relieve
our financial laws from ambiguity and
doubt.
The brief review Of what was accom-
plished from the close Of the war to 1893
makes unreasonable and groundless any
distrust either Of our financial ability or
soundness. while the situation from 1898
to 1897 must admonish congress OF the i'm
mediate necessity of so Iegislating as tc
make the return of the conditions then
prevailing impossible.
Every Dollar Is Good.
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 i9 not that our currency OF
every kind is not good, for 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 guar
anty Of our purpose to keep the pledge
will be best shown by advancing toward its
fulfillTnent.
The evil of the present system is found
in the great cost of the government of
maintaining the parity Of our different
forms of money; that is, keeping all Of
them at par with gold. We surely cannot
be longer needless of the burden this i'm
poses upon the people even under fairly
prosperous conditions, while the past four
years have demonstrated that it is not
only an expensive charge upon the govern
ment, but dangerous menace to the ma
tional credit.
1t is 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 multiplied
redemptions of our demand obligations, Or
increase the gold reserve for their re-
demption. We have $1,000, 900 Of cur
rency which the government by solemn en-
actment has undertaken to keep at par
with gold. Nobody is obliged to redeem
in gold but the government. The banks
are not required to redeem in gold. The
government is obliged to keep equal with
gold all its outstanding currency and coin
obligations, while its receipts are not re-
CURED to be paid in gold. They are paid
IN every kind of money but gold, and the
only means by which the government can
with certainty get gold is by borrowing.
It can get it in no other way when it
most needs it. The government without
any fixed gold revenue lis pledged to main
tain gold redemption, which it has steadily
and faithfully done and which under the
authority 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
funds demands a constant replenishment OF
the gold reserve. This is especially so IL
times of business panic and when the reve-
nues are insufficient to meet the expenses
of the government.
At such times the government has no
other way to supply its deficit and main
tain redemption but through the increase
of it's bonds, as during the administration
of nv predecessor when 1852 ,315 400 Of Az
per cent bonds were issued and sold and
the proceeds used to pay the expenses ol
the government in excess Of the revenues
and sustain the gold reserve. While 1t is
true that the greater part Of the proceeds
of these bonds were used to supply deh
cient revenues. a considerable portion wa:
required to maintain the gold reserve.
The Need Of Reform.
With our revenues equal to our expenses
there would be no deficit requiring tn
issuance Of bonds. But if the gold reserve
falls below S10G, 900 ,000 how will it be re
plenished except by selling more bonds
Is there any other way practicable unde
existing laws? The serious question thel
is. shall we continue the policy that la
been pursued in the past; that is when til
gold reserve reaches the point of danger
issue more bonds and supply the needle
gold or sholl VIC provide other means I
preyent these recurring drains upon tn
gold reserve? II no further legislation
had and the policy Of selling bonds is
he continued then congress should civ
the secretary OF the treasury authority t
sell bonds at lcng or short periods, bear
ing less rate of interest than is no
authorized by law.
earnestly recommend, as soon as t.
receipts OF the government are quite suf
cient to pay all the expenses of the go'
eminent. that when any of the Unite