The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1897-12-08


To the Senate and House Of Representatives.
1t gives Iae pleasure 70 extend greeting
TO the Fifty fifth congress assembled in
regular session at the seat Of government,
with many Of whose senators and repre-
sentatives / have been associated in the
legislative service. Their meeting occurs
under felicitous conditions, justifying
sincere congratulation and calling for our
grateful acknowledgement 20 beneficent
Providence which has so signally blessed
and prospered Us as a nation. Peace and
and good will with all the nations of the
earth continue unbroken. A matter Of
genuine satisfaction is the growing feeling
of fraternal regard and unification OF all
sections OF our country, the incomplete
ness of which has too long delayed the
realization OF the highest blessings of the
Union The spirit Of patriotism IS uni
ycrsal and is ever increasing in feryor.
The public questions which now most en-
c,ross Us are lifted far above either parts
EnshiD, prejudice or former sectional diff
ferences They effect every part of our
common country alike and permit Of no
division on ancient lines. Questions OF
foreign policy, Of revenue, the soundness
OF the currency, the inyiolability of ma
tional obligations, the improvement of
the public service, appeal 10 the individ-
ual conscience o. every earnest citizen TO
whatever party he belongs or in what
ever section Of the country he may re-
side
The extra session Of this congress which
closed during July last enacted important
legislation, and while its effect has not
vet been realized, what il has already ac-
compiished assures Us of its timeliness
and wisdom. To test its permanent value
further time viii be required and the peo-
Dle. satisfied with its operations and re-
--.-Hes- shr1s ara in mind IN Withhold
from il q fair trial.
Views on the Currency.
Tariff legislation having been settled by
the extra session of congress the question
next pressing for consideration is that OF
the currency.
The work OF putting our finances upon
a sound basis, difficult as it may seem,
viii appear easier when we recall the
financial operations OF the government
since 1896. On the seth day of June OF
that year we had outstanding demand
liabilities ir the sum of S72S, SIS, 447. IL
On the lst Of January, 1879, these liabili
ties had been reduced to SAB, ,SS9, ,495.S s.
OF our interest bearing obligations, the
figures are even more striking. On July
/ iSfj6. the principal of the interest bear
ing debt Of the government was =,
81 2JS. On the lst day of July, lSg3
this sum had been reduced to $3.50 .037, 100
or an aggregate reduction OF 81, AZ ,294,
los. The interest bearing debt Of the
United States on the lst day of Decem-
be- 1897 WAS $S47, ,3i5, ,fi5o The govern
ment money now outstanding (DeccmbeI
u consists Of S3fj 6Sl ,0l6 Of United States
notes SIO7, ,7g3. 80 Of treasury notes is
sued 10y authority OF the law Of 1890,
S3si SOB JOf of silver certificates and SOL,
80 76l OF standard silver dollars.
With the great RESOURCES of the govern
4 D. 1a .F
the past before rs, we ought not To hesi-
tate 70 enter upon currency revision
which VIII make our demand obligations
less onerGUs 10 the government and re-
lieye our financial laws from ambiguity
and doubt.
The brief review Of what was accom-
plished from the close Of the war 10 1898
makes unreasonable and groundieSs any
tiist-ust eli her Of our financial ability Cr
sounGness; while the situation from 1875
TO Iatl1 mast admOnish congress OF the
immediate necessity of so legislating as
To maze Oh. return OF the conditions then
prevailing impossible.
Many Flaus Proposed.
There are many plans proposed as a
remedy Tor the evil. Before we can find
the true remedy VIC must appreciate the
real evil. II is not that our currency of
every kind is not good, for every dollar OF
1t is good, good because the governments
pledge is out 70 keep it 50, and that pledge
Will not he broken. However tho guar
anty OF our purpose TO keep the pledge
VIII lie best shown by advancing toward
its fullilIDent.
The evil Of the present system is found
in the great cost 10 the government of
maintaining the parity of our different
forms Of Iuuney-that is, keeping all of
NJ -rz-ffh a rr.ln a. gnsr5lr
be longer needless OF the bu. den this i'm
poses upon the people, even under fairly
prosperous conditions. while the past four
years have demonstrated that 1t Is not
only an expensive charge upon the govern
meat, bat a dangerous menace to the ma
tiOnal credit.
IL Is manifest that we must devise
some plan TO protect the government
nglinst bond issues for repeated rcdemp-
tlOns. We must either curtal the op-
pOrtunity for speculation, made easy by
the multiplied redemptions Of our de
mGnd obligations, or increase the gold re-
serve for their redemption. We have
hEO.J00,uOJ Of currency which the govern
leut by solemn enactment has under
taken TO keep at par with gold. Nobody
is obliged TO redeem in gold but the gov
eanmcut. The banks are not required TO
redeem in gold. The government is
obliged to keep equal with gold all its
outstanding currency and coin Obliga-
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
certainty get gold IS 10y borrowing. 1t can
Get IL in no other way Wken IL most needs /
IL. The government without any fixed
gold revenue is pledged 10 maintain gold
redemption, which IL has steadily and
faithfully doEe, and which under the
authority now given it viii continue TO
d..
The law which requires the governments
after having redeemed its United States |
notes to pay them out again as current !
funds demands a constant r,plcnishment |
rf the gold reserve. This is especially SO |
IN times Of business panic and when the |
revenues arc insufficient to meet the ex |
pcnscs Of the government. At such times |
the government has no other way to sup |
Fly its deficit and maintain redemption |
but through the incrCase of its bonded |
debt, rs during the administration Of my |
predecessor, when 8 = 3i5, 400 Of four and |
o half per cent bonds We're issued ald sold |
9nd the proceeds used to pay the expenses
Of the government in excess of the rive
nues and sustain the gOlS reserve. While /
Il is true that the greater part Of the pro
cccds OF these bOnCs were used TO supply |
deficient receipts, a considerable portion /
was required TO maintain the gold re
serve.
With our revenues equal TO our ex-
IenscS, there would be 10 deficit rcquir-
ing the Issuance of bonds. But If the /
gold ncserye falls below Slo0, coo 600 how
Viii il be replenished except by selling |
more bondsg Is there any other way /
practicable under existing law2 The /
serious question then is, shall we con-
time the policy that has been pursued in
the past; that is, when the gold reserve i
reaches the point of danger issue more
bonds and supply the needed gold, or shall
we provide other means to prevent these
recurring drains upon the gold reserve?
il no further legislation is had and the
P0licy OF selling bonds is TO be continued,
the treasury authority 10 sell bonds at
long or short periods, bearing less rate
OF Interest than Is now authorized Dy law.
require Gold For Gr.cnbacss.
! earnestly recommend as soon as the
receipts Of the gOvernmCat are quite suffi-
cient 10 pay all the expenses of the goy-
srnmeut, that when any IF the United
States notes are presented for redemption
in gold and are redeemed in gold, such
nojes shall be kept and set apart, and
only paid out in exchange for gold. This
is an obvious duty. II the holder o. the
United States note prefers the gold and
gets II from the government, he should
not receive hack from the government a
United States note without paying goid
in exchange for it. The reason for this is
made all the more apparent when the
government issues an interest-bcaring
debt to provide gold Tor the redemption
Of United States nOtes-a non-intercst-
bearing debt Surely il should not pay
them out again except for demand and for