The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1897-12-10
TIE Currency QUESTION.
Necessity of Putting Our Finances
Innn q sound HnsIs.

Tariff legislation having been settled by
the extra session OF congress, the question
next pressing for consideration Is tnat OF
the currency. The work OF putting our
finances upon sound basis. difficult as i
may SEEM Will appear when We recall
the financial operation OF the government
since 1866 on the 31th day OF June OF
mat year. we had outstanding demand
liabilities in the sum of S7@. .i47 Al. On
the LIST DAY OF July, 1873. these Liabilities
had been reduced 10 sff3. $50 as s.. OF our
interest-bearing Obligations, the figures
are even more striking on July !, lo16.
the principal OF the interest-bearing debt
OF the government was ,,..S3l.2oe- On
the lst day OF July, 1888. this sum had
been reduced TO S5s5 o3l. 100 or an aggrc-
gate reduction OF Si.747. "a. los. The inter-
est-bearing debt OF the United States on
the lst day OF December. 1897. was $ei1.-
365 .620. The government money now out
standing December ID consists OF <3i6,-
6sl.Oi6 Of United States notes. SlOl, 1920
OF treasury notes issued by authority OF
the act OF 1890; 1854 5oi OF silver certih-
Gates and 81. .76l OF standard silver
dollars
With the great resources OF the govern
ment and with the time-honored example
OF the past before Us. We should not hesi-
tate TO enter upon a currency revision
which will make our demand obligations
less onerous 10 the government and re-
leve our financial laws nom ambiguity
and doubt
The brief review OF what was accom-
plshed from the close OF the war until
1883 makes unreasonable and groundless
any distrust either OF our financial aoil-
fty or soundness; while the situation from
1888 10 1897 must admonish congress OF the
immediate necessity for so leglslating as
10 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. IL Is not that our currency or
every kind Is not good. for every dollar
OF II Is good; good because the govern
ments pledge is out TO keep 10 so. ana
that pledge will not be broken How
ever. the guaranty OF our purpose to Keep
the pledge will be best shown by acvanc-
ing toward IS fulhllment
Evil of the Present system
The evil OF the present system Is found
IN the great cost TO the government OF
maintaining the parity OF our different
forms OF money; that IS. keeping all OF
them al par with gold. We surely cannot
be longer needless OF the burden this i'm
poses upon the people. given under fairly
prosperous conditions. while the past foul
years have demonstrated that IL Is not
only an expensive charge upon the gov
eminent. but a dangerous menace TO tn'
national credit.
plan to protect the government agains
bond issues for repeated redempuons. W.
must either curtail the opportunity FOL
speculation. made easy by the multiplied
redemptions OF our demand obligations. Of
increase the gold reserve for their re
dempuon. We have SeOOoo0.Oo0 OF currenc,
which the government, by solemn enact
ment. has undertaken TO keep at par Will
gold. Nobody Is obliged TO redeem II
gold but the government. The banks ar
not required TO redeem In gold. The gov
ernmcnt is Obliged TO keep equal witt
gold all its outstanding currency and coll
obligations. while Its receipts are not re
quircd to be paid In gold. They are PAL
in every kind OF money but gold, and IN
only means by which the government car
With certainty. get gold Is by borrowing
IL can get Il In no other way when II mos
needs Il. The government without an
liked gold revenue Is pledged TO maintai
gold redemption. which Il has steadily an
faithfully DONE and which. under the az
thority now given. IL will continue 10 DO.
The law which requires the government
after having redeemed its notes. TO pa
them out again as current funds demand
constant rcplenishment OF the gold n
serve This Is especially 50 In times {
business panic and wher the revenues an
insufficient TO meet the expenses OF N
government. At such times the govern
ment has no other way to supply its de-
icit and maintain redemption hut throug
the increase OF its bonded debt. as durlr
tho administration OF my predecesso
when $50 100 OF a. per cent bono
were issued and sold and the proceed
used to pay the expenses or the govern
snent In excess OF the revenues and susta
the gold reserve. While Il Is true IN
the greater part OF the proceeds OF the
bonds were used TO supply deficient rev
uues. a considerable portion was reQuir'
10 maintain the gold reserve
Replenfshing the Gold Reserve
With our revenues equal 10 our expense
there would be no deficit requiring the
srance OF bonds But II the gold reser
falls below yoo.o0oooo. how viii II be r
renishcd except by selling more bond
is there any other way practicable und
existing law The serious question tn
IS Shall We continue the policy that h
been pursued In the past-that Is. when Z
gold reserve reaches tho point OF danE'
issne more bonds and supply the need
rold-or shall We provide other me2
% prevent these recurring drains upon I