The Dickinson press., 1897-12-11

qu!red to be paid.in gold. They arc paid
In every kind Of money but gold, and the
snly means by which the government can
With certainty get gold 10 BY borrowing.
It can get 1t In no other way when IL most
needs it. The governments without any
exed gold revenue y Pledged 70 maintain.
gold redemption, ,whichit has stesdily and
faithfully done, and which under the
authority now given II will continue
30 do.
Demands Cssssaat tRsplsalsAnsut.
The law which requires the govern
ment, after having redeemed its United
States notes, to pay them out again -
current funds demands . constant ~
plenishment Of tho gold reserve. This 10
especially 20 In times Of buEnsss panic
and when the revenues are insufficient
70 meet the expenses Of tho governments
At such times the government has no
other way to supply its dsfoit and main
tain redemption but through the increase
Of its bonded debt as during the admins.
Eation OF my predecessor when 1885,
sold and the proceeds used to pay the ex-
revenues and sustain the gold reserve.
W
the proceeds Of these bonds were used to
supply deficient revenues, . considerable
portion was required to maintain the gold
reserve.
Should Have Authority to Sell Bends.
With our revenues equal to our expen.
ises, there would be no deficit requiring
The issuance Of bonds But IL the gold
reserve falls below 900. .000, 900 how will
1t be replenished except by selling more
bondsf Is there any other way praotioa-
BILE under existing lawf The serious
question then 10, shall we continue the
policy that has been pursued in the past;
that is, when the gold reserve reaches the
point Of danger, issue moro bonds and
supply the needed gold, or shall we pro-
vide other means to prevent these re-
curring drains upon the gold reservef II
no further legislation Ia had and the pol
icy Of selling bonds is to be continued,
then congress should give the secretary Of
the treasury authority to sell bonds at
long or short periods, bearing less rate
ofinterest than is now authorized by law.
No Reissue Of Notes Except For Gold.
receipts OF the government are quite suf-
ernment, that when any Of the United
in gold and are redeemed in gold, such
notes shall be kept and set apart. and
only paid out in exchange for gold This
10 an obvious duty. II the holder of
United States notes prefers the gold and
gets it from the government, he should
not receive back from the government q
United States note without paying gold
In exchange for it. The reason for this
10 made all the more apparent when the
government issues an interest bearing
debt to provide gold for the redemption
Of United States notes-a non-interest
bearing debt. Surely it should not pay
them out again, except on demand for
gold. II they are put out In any other
way they may return again to be followed
by another bond issue to redeem them
another interest bearing debt to redeem a
non-interest bearing debt.
Government the Only Sufferer.
In my view 1t Is of the utmost impor-
tance that the government should be re-
lieved from the burden Of providing all
the gold required for exchanges and OK.
port. This responsibility is alone borne
by the government without any Of the
usual and necessary banking powers to
help itself. The banks do not feel the
strain of gold redemption. The whole
strain rests upon the government and the
size of the gold reserve in the treasury has
come to be, with or without reason, the
signal of danger or Of security. This
ought to be stopped.
II we are to have an era of prosperity in
the country with sufficient receipts for
the expenses Of the government we may
feel no immediate embarrassment from
our present currency; but the danger still
exists and will be ever present menacine
us 80 long as the existing system con.
tinues. And besides, it is in times Of ade
quate revenues and business TRANQUILITY
that the government should prepare for
th worst We cannot avoid without
serious consequences the wise considera-
ton and prompt solution Of this question.
Calls Attention to Mr.. Cages Plan.
The secretary of the treasury has out.
lined q plan in great detail for the purpose
of removing the threatened recurrence Of
q depleted gold reserve and save us from
future embarrassment ON that account.
To this plan invite your careful consid
Grafton.
Iconour with the secretary of the treas.
ury in his recommendation that national
banks be allowed to issue notes to the
face value of tho bonds which they have
deposited for circulation and that tax on
circulating notes secured by deposit Of
such bonds be reduced TO one-half of l
per cent per annum. also join him
in recommending that authority bs
given for the establishment of national
banks with q minimum capital Of 0o6 900.
This will enable the smaller villages and
agricultural regions Of the country to bs
supplied with currency to meet their
needs.
recommend that the issue Of national
bank notes be restricted to the denomina.
ton of SO and upwards. II the sugges.
tions have herein made shall have the
approval Of congress then would recon.
mend that national banks be required Ia
redeem the notes In gold.
THE CUBAN QUESTION.