Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1897-12-16
CURRENCY LEGISLATION.
Congress should Not Hesitate TO En-
ter Upon Revision.

CURRENCY LEGkSLAIlON.
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
finances upon a sound basis, difficult as it
may seem, will appear easier when We re-
ment n SINCE A 1855 On the d Goth day ef June
of that year we had outstanding demand
liabilities in the sum Of SIS, SOS. 447. Il. Or
been reduced to $443, SS9 1885, IS. OF our in
terest-bearing obligations, the figures are
even more striking. On July l, 1866, the
principal of the interest-bearing debt of
the government was s.. S32, 3S1.20S, On the
first day of July 1893. this sum had been
reduced to $5S5,OS7, 100, or an aggregate re-
duction OF 81, "a. 2S4. los. The interest-be bear
ing debt of the United States on the first
government money now outstanding ODE
cember ID consists of $S46. 6Sl,0l6 of United
issued by. authority Of the law Of 1880. $3.50. :
963, SOB of silver certificates, and SCI, $50 761
of standard silver dollars.
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 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 1885
makes unreasonable and grouncless any
distrust either OF our financial ability or
soundness, while the situation from 1899
to 1897 must admonish congress of the i'm
mediate necessity of so legislating as 10
make the return of the conditions then
prevailing impossible. There are many
plans proposed as remedy for the evil
Before we can md the true remedy we
nust appreciate the real evil. Ii is not
,r every dollar of it is good; good beeause
governments pledge is out to keep it
and that pledge will not be broken
oweVer, the guaranty of our purpose to
sep the pledge will be best shown by
dvancing toward its fulfllment.
Evil of the Present Syntem,
The evil of the present system is found in
the great cost TO the government of main
tanning the parity OF our different forms of
money-that is, keeping all of them at par
with golo. We surely cannot be longer
needless of the burden this imposes upon
the people, even under fairly prosperous
conditions, while the past four years have
demonstrated that II is not only an ex-
pensive charge upon the government but
dangerous menace to the national credit
Must Provide Against Bond Issues.
II is manifest that we must devise some
plan to protect the government against
bond issues for repeated reQemptioAs, 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 redemp-
ton. We have $500, 100000 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 no.:
required 10 redeem in gold. The govern
ment is obliged to keep equal with gold all
tions, while its receipts are not REQUIRED
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 GER
tainty get gold is by borrowing. 1t can get
It in no other way when 1t most needs it.
The government without any fixed gold
revenue is pledged to maintain gold re-
demption, which II has steadily and faith
ty now given it will continue TO do.
The law which requires the government
after having redeemed It's United States
notes to pay them out again as current
funds demands constant replenishment
Of the gold reserve. This Is especially sc
revenues are insufficient 10 meet The ex-
penses of the government. At such times
the government has no other way to sup-
ply its deficit and maintain REDEMPTION bi,f
through the increase OF its bonded debt as
ourlng me . aamlnis Isl of my predeces-
were issued and sold, and the proceeds used
to pay the expenses of the government In
gold reserve While it is true SUSAN nam ne the
greater part of the proceeds Of these bonds
was used TO supply deficient reVenues a
considerable portion was required To- main
tain the gold reserve.
With our revenues. equal to our expenses
there would be no deficit requiring / ne is-
suance of bonds. But If the gold reservs
falls below slOO,000.OO0 how Will il be re-
ls there any other way practicable under
existing law? The serious question then is.
Shall We continue the policy that has been
pursued in the past-that is, when the gold
reserve reaches the point Of danger issue
more bonds and supply the needed gold, or
shall We provide other means to preyent
these recurring drains upon the gold re-
serve ser ,d II no further legislation is had and
ued, then congress should give the secre-
tary OF the treasury authority to sell bonds
az long or short periods, bearing less ra te
or interest than is now authorized by law
An Obvious Duty.
l earnestly recommend as soon as the
receipts CT the government are quite SUI
eminent that when any of the Uni1ed
States notes are presented for redemption
in gold and are reQeemed in gold such notes
snail be Kept ana set apart and only PAID
out IN exchange Tor gold. This is an OBJ
y yious duty. II the holder Of the United
from the government he should not receive
back from the government United States
it. The reason tor this is made All III t5s
more apparent when the government issues
an Understanding debt TO provide gold
for the redemption of United States notes
a Notwithstanding debt. Surely if
should not pay them out again EXCEPT on
demand and for gold. If they ere put out
in any other way they may return again TO
be followed by another bond issue 10 re-
to redeem noninterest- bearing debt.
IndOrses Secretary Cages Plan.
The secretary of the treasury has out
lined a plan in great detail for the purpose
~ ASAAAoF rs IL LA SfNNSA4SN AALGAGE OF
q depleted gold reserve and saving us from
future embarrassment on that account To
this plan / invite your careful consdera-
ton. 1 concur with the secretary of the
treasury in his recommendation that ma
tional banks be allowed to issue notes 10
the face value of the bonds which they
have deposited for circulation, and that the
tax on circulating notes secured by deposit
OF such bonds be reduced 10 one-half or one
Fer cent. per annum. I also join him In
recommending that authority be given for
the establishment of national banks with
minimum capital of $4,000. This will
enable the smaller villages and agricultural
regions of the country TO be supplied with
currency % meet their needs. I recommend
that the issue OF national bank notes be re-