The Somerset reporter., 1897-12-09
THE MESSAGE.


TO the Senate and House Of Represent
atlVes-lt gives me pleasure to extend
greeting to the fiftY-hfth Congress as
temeled in regular session at the scat #
government, with many Of whose SEN
Tors ana representatives | have been a.
soclated In the legislative service Their
meeting occurs under feleltous condl.
lions. justifyinP sincere congratulation and
calling forth our grateful arknoNlcag=
ment to benefcent providence. which
mas so sgnally blessed and prospered MS
a nation.
Peace and good will with all the m
tons Of the earth. continue unbrokeu \
matter OF genuine satisfaction Is the
growing feeling of fraternal regard aud
unlheaton of all sections OF our country
the incompleteness of which has too long
delayed realization of the highest bless
inss OF the union. The spirit OF patriot
Ism Is universal and is ever increasing IN
| tervor. The public questions which nov
most engross us are lifted far above
| either partisanship, prejudice or former
, sectional differences They affect 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 invio-
liability of national obligations. the I'm
proNement of the public service appeal
to the individual conscience of every ear
nest citizen to whatever party he belongs
or in whatever section of the country he
may reside,
The extra session OF this Cong ess
which closed during July last enacted
important legislation, and while its full
W 1,af
| IL has already accomplished assures US
! OF Its timeliness and wisdom. To test
| It's permanent value further time vii
he required. and the people, salts ed
with Its operation and results thus far.
! are in no mind to withhold from 1t a
falr trial Tariff legislation having been
settled by the extra session of Congress.
the question next pressing for consld-
Grafton is that of the currency.
SOUND BASIS FOR CURRENCY.
The work of putting our finances upon
a sound basis difficult as il may seem
Will appear easier when we recall the
financial operations of the government
since 1866 On the 30th day of jun 4
that year we had outstanding demand
liabilities in the sum of SIPS SIS, 417.41. ON
the first of January. 1879. these liabilities
had been reduced to SAB $50. 49,. IS or our
| Understanding obligations, the figures
are even more striking. On July l. 1886.
the principal of the interest-bearing debt
of the government was So. 80, 3S1 20S. on
| the first day of July. 1898 this sum had
been reduced to $3.50. 037 100 or an aggre-
gate redNs ton Of Sl,747 29i10S The inter
est-hearilig debt of the United States ON
the first day of December. 1897, was SSH
1856 The government money now out
standing Oec. u consists of $}46, 6Sl OILS
of United States notes $l07 1913 go of treas
ury notes issued by authority of the law
Of Of ct, fH.,.,t to
and 1881 $50 Isl of standard silver dollars
With the great resources Of he govern
ment and with the honorable example
of the past before us, we ought not to
hesitate to enter upon currency re
vision which will make our demand ohli-
cations less onerous 10 the government
and relieve our financial laws from ann
/ higuity and doubt
The evil of the present system is found
/ I'm the great cost to the government of
maintaining the parity of our different
/ forms of money. that Is, keeping all of
i them at par with gold. We surely can
not be longer Needless of the burden this
j imposes upon the people. even under
/ fairly prosperous conditions while the
+ past four years have demonstrated that
! It is not only an expensive charge upon
/ the government. but a dangerous menace
/ to the national credit. 1t is manifest that
/ We must devise some plan To protect the
/ government against hnlu ISSUES for re-
4 peated redemntions. We must either cur
/ tail the opportunity for speculation made
/ easy by thu multiplied redemption Ct our
j demand obligations. or increase the gold
reserve for their redemption We have
/ 5000 0a0 900 of currency, which the govern.
| ment. by solemn enactment has under
/ taken to keep at par with gold Nobody
! IS Obliged to redeem In gold but the
! government, The banks are not requlreo
| TO redeem i'm gold. The government i.
obliged to keep equal with gold all It's
/ outstanding currency and coin obliea.
| lions. 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 by borrowing
/ 1t can get it no other way whom II must
/ needs it. The government. without any
i fixed gold revenue, is pledged Ia maintain
i gold redemption which 1t has steadily ana
faithfully done and which. under the au-
! thority now given it, 1t Will continue to
/ do.
With our revenues equal to our ey-
penses, there would be no deficit reouir-
/ ing the issuance OF bonds but if the
/ gold reserve falls below 300 900 600 how
will 1T be replenished except by selling
more bonds? Is there any other way
practicable under existing law The
+ serous question then Is, shall we COM
! tinue the policy that has been pursued
in the past. shat is when the gold re-
serve reaches The point of danger. issue
more bonds and supply the needed gold:
or shall we provide other means to PR
j vent these recurring drains upon the
gold reserve? If no further legislation
is had. and the policy of selling bonds is
/ to be continued, then congress should
/ give the secretary of the treasury au-
/ thoritY to sell bonds at long or short
/ periods, bearing "A less rate of interest
| than is now authorized by law
/ earnestly recommend. as soon as the
receipts of the government are quite
sufficient to pay all the expenses Of the
government that when any of the
United States notes are presented for
redemption in gold and are redeemed in
| gold, such notes shall be kept and
set apart, and only paid out in
exchange for gold. This is an obvious
duty If the holder of the United States
note prefers the gold and gels it from the
government, he should not receive back
from the government United States
note without paying gold in exchange for
It. The reason for this is made all the
more apparent when the government Is
sues an interest bearing debt to provide
gold for the redemption of Emitted States
notes-a non-interest bearing debt Sure
~ II should not pay them out again ex-
tept on demand and for gold II they are
put out in any other way they may re-
turn again, to be followed by another is
sue to redeem them-another interest
bearing debt to redeem nou-iutereat-
bearing debt.
In my view it Is of the utmost import
ance that the government should bp re-
Heved from the burden of providing all
ia rfiA rf,g.I e.