The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-01-22
SEATTLE. FRIDAY, JAN. 81.
cHrgsBacKs AND THE RESERVE

There are Two sets Of theorists having
particular fads IN connection With the
governments finances. who persis'sHtiy
ignore historical facts in connection with
the history os our currency system One
CT these II made up OF the usually we'll
Informed class ~ men, the gold mono
re;alilsta, who see IA the outstanding
sreeabacks a constant menace 70 the
treasury seservs. and the other is made
tsp ~ me raaic 'tantl-bznk'' Popuiistic sls-
usens. wno Insist that the bond issues Of
Ar Csevelsnd's adminlstraron were
..roasht about By "a conspiracy Of the
banksrs.''
These theorists overlook perfectly
plain and Obvious cause when lad to the
fnuch-abasea bond issues which was the
fact that the government vas steadily
rnnninE behind Ia It's expenses. and that
the total amount Of the bond issues In
fact amounted to but comparatively little
more than the amount OF deficit during
the past three years
The historical facts which are overlook
&c are equally obvious. Why, for exam
PIE. was Il that the treasury was never
'sralded." the treasury reserve never de
pleted." until such time as the govern
ment's income fell below its outgo7 From
the time OF the resumption Of specie pay
ments IN 1879 down until the close OF the
fiscal year Of 1890. the treasury reserve OF
gold never fell below the minimum mark.
The government was never In straits for
gold TO keep It's reserve intact. During
the same period. the Understanding debt
OF the government was reduced from
sl.soo eDo. 600 10 s5ss. 10000.
II the theory tina; the bankers are so
keenly anxious 10 have new bond issues,
and are given 70 raiding the treasury re-
serve for the purpose Of compelling such
issues. 10 q true one. how did II happen
that during sl that period of time they
sat supinely by and saw hundreds Of
millions or dollars worth OF bonds called
IN and Cancelled long before thoy were
due. and at heavy expense for pre-
miums7 ~ the way 70 bring about bond
issues vas the presenting OF greenbaeks
for redemption. how did It happen that
during that long period OF time but sis.-
osneoo OF grecnhacks were ever so re-
deemed7
Ths answer Is a very easy and simple
ore, During that whole period the gov
eminent rad an ample income. Indeed.
during a great portion Of the time II had
heavy surplus. That surplus WAS the
cause OF a great deal OF unsasiness TO the
Democrats party and was the general
target OF attack by all campaign orators
or that side. Yet ;hAt surplus itself was
almost enrirely made Up Of gold the rev.
ennes Of the government were paid IN gold
because business men preferred to use the
paper money IN their business Geld was
received BY tho government in payment or
debts due Il: but. except On the PaeiHo
coast merchants. bankers and business
men generally. did net like to sec.iys the
bulky metallic money.
Ths ret" gold in the treasury IN ths
years from 1856 until 1890 ranged from si5a.-
cocaa TO 80 90. 90. and constituted the
"hugsboe" treasury surplus.
The Ereenhacks never constituted a
menace" &c the treasury and the gold re-
serve % the government was never IN
esngsr az SiminutIon. from. the time OF the
resumption 81 specie payments down 20
the time when The government attempted
10 90 business under t&ssr law which
produces revenue about 500. co 90 each
year less tnan the amount paid ogt. With
proper revenue law. with an income saf-
fefanf - meet running sNnauaas thavs
viii ~ llttle heard Of any demand Tor
tons Issues. or any ra,8lns 81 the treasury
reserve In the future