Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-07
A BETTER CURRENCY
Secretary Cage Wants Creenbacks
Retired.
BANK PAPERS SUPERIORITY
Annual Report of the Head Of the
Treasury
ESTIMATES FOR THE CURRENT YEAR
BANK PAPERS SUPERIORITY


pages and discusses in detail the operations
of the department as reported by his subor-
dinates. Naturally most interest is felt in
his views on the currency. On this subject
he has written as follows:
I'm their respective annual reports to
Congress my predecessors since the close
of the civil war have called attention with
unfailing regularity to the menace to the
public credit occasioned by the continued
use of the large volume of demand liabili-
ties, represented by the legal tender notes.
and have constantly appealed for such
legislative action as would remove the
dangers pointed out Although these warn
ings and appeals have not as yet met with
the responsive action that their serious ma
ture justifes. it is not now the part of wis
dom to ignore them. In fact. as time has
gone on, all the reasons upon which these
warnings and appeals We're based have re-
ceived additional force. The enormous de-
probation in the commercial value of sill
yer. as compared with gold, has greatly in
creased the financial responsibilities of the
government in its demand liabilities. and
all the logical consequences of the fact
should be boldly faced
Under the act of 1873, requiring the pur-
chase and coinage of silver. Supplemented
and enlarged by the so-called Sherman act
of 1889. there was outstanding June 81.
1897, the sum of s41o33I.5IO in silver dol
lars certificates representing them. I'm
der the act of 1880 there were also out
standing S1lI.S61,2 80 in treasury notes
clothed with the quality OF legal tender.
In the act of November l, 1893. repeating
the purchasing clause of the act of 1880, ii
was declared TO be the policy of the United
States 10 secure by safeguards of legisla-
ton the parity in value of the coins OF
the two metals gold and silver and the
equal power of every dollar at all times in
he MAJ efz md in of, Il lht
Redeeming silver in Gold.
Comfortable to the spirit Of this decla
ration. the Treasury Department in all its
operations has treated gold and silver coins,
and the paper representatives of each, as
of equal dignity and value. In the collec-
ton of its revenues. whether in the form
of excise taxes or of customs dues IL has
made discrimination against neither, while
upon the other hani il has held itself ready
10 pay to the public creditor whichever OF
the two he might choose To receive as the
more desirable to him. Even further than
this. il has declared itself ready. whenever
nece Ssdry TO the maintenance of this parity.
to exchange on even terms. at the pleasure
OF the holder, either form of the metallic,
money for the other. These practical oper-
ations and declarations were necessary
and they have operated to keep in concur
rent circulation on terms of eqCality the
TWO Kinds OF metallic money, notwithstand-
Ing the varying and never-ceasing disparity
between the natural or CONNER ciai value of
the on as compared with the other.
N"vertheiess,it must be recognized that this:
Undertaking involves a large financial re-
sponsiblhty. and requires proper and ade-
qnate legislative provisions for its con-
tnuei execution.
The rsspC visibility OF the government in
this respect means that in addition TO its
liability for redemption in gold on demand
OF Sfli.'sDnp of legal tender notes it
must also hold itself in readiness TO redeem
like Of he
notes IF $50. and 10 maintain through its
treasury TIE free interchangea bility with
gold. Tor any part or all of S41u. GJo, 00u in
silver now current with our people. The
aggregate total of these Liabilities amounts
TO StS''-DoNp. 1t i not intended to con-
vey the idea that the government will ever
be called upon TO ray ut any one time or
ever any one PERIOD of time. however pro-
tracted, the total of liability thus shown
1t is. however. indispensable that the treas
Try be endowed with power and resources
ample to meet all claimants who may
come, and with margin sufficient to give
fun assurance TO all who do not come. that
Its AFFINITY for continuance is unimpaired.
The statement that the traditional s1p,-
Uhlbp OF gold reserve is insufficient for
these purposes need not be suODorted BY
argument. 1t is manifest. The recognized
II adequacy of that amount has on more
than one occasion brought fear and de-
ranSemcnt TO all interests, industrial COM
n-ercial nd financial. The losses suffered
by the body polite through these derange-
r>ents having their origin in the state of
the public treasury cannot be named al
though 1t is not beyond the limit of rea-
sonable estimate TO say that the total of
such losses exceeds the total of the demand
naJiiltles of the treasury as above set
Forth If ii be urged in answer to these
consideration that the state of the treas
ury Is fairly satisfactory now. that gold
Is flowing freely toward the treasury and
not away from it. and that there is a good
state Of confidence in our present financial
condition. the answer must be received as
Z perfectly correct one. II might be fur
Their urged with probable truth that these
favorable conditions will endure for an
GIr!efinite period WHh pui,ic revenues
Sufficient for public expenditures and a
reasonable surplus accommodating: with
trade relations normal, with ample crops
carrying fair rewards to agriculture with
10 wal or well-defined rumors of war we
might go or with a growing sense of
security. Unfortunately the continuance of
these good conditions can not be assured to
u.s. Commerce and industry, sensitive TO
all uIfavorable events AID watchful with
anxiety against dangers yet unseen,
need for their full recovery from past re-
verses and depression a renewed confidence
that the governments finances are to be
hrnly placed on stronger and more en-
during foundations than now exist.
Dependent on Congress.
As long as the government shall operate
TO any important extent in supplying the
currency of the country by the direct is
s@NS Va rs ApNts anu maintaining,
through Its guarantees of parity. so large
a volume of silver money. so long will all
our trade and Industries remain in a state
OF dependency upon the financial wisdom.
foresight. and courage of Congress- This
forced dependency the one part begets
corresponding responsibility on the other
considered from the standpoint of ma
tional defense the argument is reinforced
We appropriate millions 10 create a navy
which, through the genius of invention
may speedily become obsolete and worth
less We appropriate other millions to pro-
VIDE coast defenses against attacks which
may never be made. Such action timely
ana wise as IL may be, is Inconsistent with
q treasury condition so extended IN a time
OF peace as to bring panic and alarm TO
our own people before the first sound of
The enemys guns. In modern days a WELL
supplied war chest with an impre enable
credit is as important as are war ships
shore batteries. or regiments OF men.
the advantages of a strong position In
the national treasury, with Its accomp any,
Ing benefits to all commercial interests and
great reinforcement of the public credit
can. / believe, be secured without any un-
settling legislation, In a manner easy to be