Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1897-12-09
CURRENCY LEGISLATION.
Congress Should Not Hesitate to En-
ter Upon Revision.

Tariff legislation having been settled by
the extra session of congress, the question
next pressing for consideration rs tnat o OF
finances upon a sound basis, difficult as 1t
may seem. will appear easier when we re-
call the financial operations of the govern
ment since 1866. On the 30th day of June
of that year we had outstanding demand
liabilities in the sum of $72S, S6S, 447.4l. on
been reduced to $443, $50 495.SS. OF our in
terest-bearing obligations, the figures are
even more striking. On July. l, 1866, the
the government was 81 1885,, 331, POS On the
first day of July, 1898, this sum had been
reduced to $5S5,037 100, or an aggregate re-
ing debt of the United States on the first
day of December. 1897, was $S47 1865, 62O. Inc
government money now outstanding SDe,,
States notes, $107, 793,2S0 of treasury notes
issued by authority Of the law of 1890. $3.50 a.,
s6S,5GS of silver certificates and $61'2So''el
With the great resources of the govern.
ment, and with the honorable example OF
the past before us, we ought not to hest
tate to enter upon a, currency revision
which will make our demand obligations
less onerous to the government, and relieve
our financial laws from ambiguity and
doubt
No Ground for Distrust.
The brief review of what was accom-
plished from the close of the war to 1898
makes unreasonable and groundless any
soundness, while the situation from 1893
to 1897 must admonish congress of the i'm
mediate. necessity of so legslating as to
make the return of the conditions then
prevailing impossible. There are many
plans proposed as a remedy for the evil.
Before we can find the true, remedy we
must appreciate the real evil. 1t is not
that our currency of every kind is not good,
for every dollar of it is good; good because
so, and that pledge will not be broken.
However, the guaranty of our purpose to
keep the pledge will be best shown by
advancing toward its fulfillment
Evil of the Present System.
The evil of the present system is found in
the great cost to the government of main
tanning the parity of our different forms of
money-that is, keeping all of them at par
needless of the burden this imposes upon
the people, even under fairly prosperous
conditions, while the past four years have
pensiye charge upon the government but
a dangerous menace to the national credit.
Must Provide Against Bond Issues.
1t is manifest that we must devise some
plan to protect the government against
must either curtail the opportunity for
speculation, made easy by the multiplied
redemptions of our demand obligations, or
ton. We have 5000, 100000 of currency
which the government by solemn enact
ment has undertaken to keep at par with
but the government. The banks are not
required to redeem in gold The govern
ment 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 GER
tainty get gold is by borrowing. 1t can get
1t in no other way when it most needs ii.
The government without any fixed gold
revenue is pledged to maintain gold re-
demption, Which it has steadily and faith
fully done, and which under the authori-
~ now given 1t will continue to do.
The law which requires the government
notes to pay them out again as current
funds demands a constant replenishment
or the gold reserve. This is especially SO
IN times of business panic, and when the
revenues are insufficient TO met the ex-
penses or the government. At such times
the government has no other Way 10 sIIn-
ply its deficit and maintain redemption bnt
through the Increase of its bonded debt nc
curing the administration of my prederes-
sor. when $262 5,400 of Az per cent bonds
were issued and sold, and the proceeds used
70 pay the expenses of the government in
excess or the revenues and sustain Inc
soiu reserve. While 1t is true that the
sreater part OF the proceeds of these bonds
wore used to supply deficient revenues, 3
cohslderaole portion was required to main.
tam the gold reserve.
With our revenues equal to our exnenses
tnere woDlc be no deficit requiring the is.
suancc or BONDS. But If the gold reserve
rails below 500 CSC, 900 how will Il be re.
nienished except by selling more bonds