The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1897-12-11
nue. unDrOllen.
All Sections Are Unified.

BDLrlt OF PATRIOTISM Is UNIVERSAL II Il ever II
creaslng in fervoF. The public questions
which now most eugross us are lifted far above
either partisanship, prejudice or former sec
tional differences. They affect every part of
our common country alike and permit of no di-
vision on ancient lines. Questions OF foreign
policy, of revenue, the soundness OF the cur
reney, the inviolabflity OF national obligations.
the improvement of The public service, appeal
TO the individual conscience OF every earnest
citizen to whatever party he belongs or in
whatever section OF the country he may reside
Endorses Special Session Liquidation.
The extra session of this congress which
closed during July last, enacted important
legislation. and while its full effect has not yet
been realized, what It has already accomplished
assures us OF its timeliness and wisdom. To
test its permanent value further time will be
required and the people, satisfied with its
operation and results thus far, are in no mind
10 withhold from It o fair trial
THE CURRENCY PROBLEM.
Tariff legislation having been settled by the
extra session OF congress, the question next
pressing for consideration Is that of the cur
rency. The work OF putting our finances upon a
sound basis, dinicult as IL may seem, will appear
easier when we recall the financial operation OF
the government since 1861 On the S0th day OF
June of that year we had outstanding demand
liabilities in the sum of S72S S6S. 54I. Al. On the
LIST OF january, 1879. these liabilities had been
reduced to &443, $50. 495. So OF our interest-bear-
ing obligations the figures are even more
striking. on July 1, 1888, the principal of the
interest-bearin9 debt of the government was
q. 49,. 33l, EOS. On the LIST day of July, 1893. this
sum had been reduced to e5S5. 037, 100. or an ag-
| gregate reduction of 81, az, 294, i0S The inter-
est-bearing debt of the United States on the
lst day OF December, 1897, was SSI7, S65, go.
The government money now outstanding ODE
cember u consists OF s346, 6si .O16 of United
States notes, tIO7, 1913 go of treasury notes is
sued by authority OF the law OF 1890, 1884, s55, 5Oi
of silver certificates, and t6l $50, s6l of standard
silver dollars.
trt.N..L .uao, aso,roa 81 ha ~ M ant
and the honorable example of the past before
us we ought not to hesitate 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. The brief review OF what was accom-
plished from the close OF the war to 1898 makes
unreasonable and groundless any distrust either
OF our financial ability or soundness, while the
situation from 1898 to 1897 must admonish con-
gress OF the immediate necessity of so ~legislat-
ing as TO molle the return of the conditions
then prevailing impossible
There are many plans proposed Us . remedy
for the evil Before we can find the true
remedy we must apprehend the real evil 1t is
not that our currency of every kind is not good,
for every dollar of it " good; good because the
governments pledge is out to keep IL 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
fulhllment. The evil OF the present system is
found in the great cost of the government OF
maintaining the parity OF our different forms
Of money, that is, keeping all OF them at par
with gold. We surely cannot be longer heed
less OF the burden this imposes upon the peo-
Pile. even under fairly prosperous conditions.
while the past four years have demonstrated
that It Is not only an expensive charge upon the
government. but 0 dangerous menace to the
national credit
1t is manifest that we must devise some plan
TO protect the government against bond issues
for repeated r~edemptions- We must either
cuPtail the opportunity for speculation, made
easy by the multiplied redemptions OF our de-
msnd obligations. or increase the gold reserve
for their redemption. We have 100000, 900 of
currency which the government by solemn en-
actment has undertaken to keep at par with
gold. Nobody is obliged to redeem in gold but
the government. The banks are not required
10 redeem In gold. The government is obliged
to keep equal with gold all Its outstanding cur
renoy and coin obligations. while fits 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
1t in no other way when it most needs it, The
government without any fixed revenue is
pledged to maintain gold redemption, which 1t
has steadily and faithfully done ana which
under the authority now given It will continue
10 do.
of Government Notes.
The law which requires the government after
having redeemed its notes to pay them out
again rs current funds demands a constant re-
Punishment OF the gold reserve. This Is eSpe-
cially so In lime OF business panic and when
the revenues are insufficient to meet the ex-
penses of the government. At such times the
government has no other way TO supply Its de-
felt and maintain redemption but through the
increase OF its bonded debt Thus In the ad-
ministration or my predecessor. tSos. BE-
400 OF AZ per cent bonds we're issued and sold
and the proceeds used TO pay the expenses OF
the government in excess OF the revenues and
sustain the gold reserve. While IT is true that
Lhe greater part OF the proceeds OF these bonds
were used TO supply deficient revenues, q con-
siderable portion was required to maintain the
gold reserve.
With our revenues equal to our expenses,
there would be no deficit requiring the issu-
ance of bonds But II the gold reserve falls
below 800. 600, 600 how VIII IL be FeplenIShed eX-
cept by selling more bonds? Is there any other
way practicable under existing law: The Sc
ClOuS question then Is. shall we continue the
policy that has been pursued in the past; that
is. when the gold reserve reaches the point or
danger, issue more bonds and supply the needed
gold, or shall we proyide other means to pre-
vent these recurring drains upon the gold re-
seryel II no further legislation is had, ana tho
policy OF selling bonds is to be continued, then
congress should give the secretary of the treas
uPy authority to sell bonds at long or short pc
RODS, bearing q less rate OF interePt
than is now authorized by law | co.
psstiy recommend as soon as the receipts
- che government are quite sufficient to pay
al tha expenses of the government, that when
a2y OF the United States notes are presented
fcs redemption in gfid and are redeemed in
g5ld. such notes shall be kept Qpq set apart,
abd only paid out in exchange for GOLD. rhts
Is an obvious duty. II the holder Of the United
States Roto prefers the gold and gets II from
the government he should not receive back
from the government 0 United states note
without paying gold In exchange for IT, The
reason for this is made all the more apparent
when the government issues an interest-bearing
pot6 to provide gold for the redemption of
ITntfP6 SIaIeE nntPG-g nOn-lnt9rgSt bearing
debt. Surely IL should not pay them out again
except ON demand and for goln. If they are pll
out 10 any other way they may return again 20
be followed by another bond issue to redeem
t-hem-another interestsbearipg debt to redeem
q non-interest bearing debt
Providing Gold for Business.
In my view il is OF the utmost importance
that the government should be relieved from
che business OF providing all the gold required
for exchange and export. This responsibility
IS alone borne by the government without any
Of the usual and necessary banking power to
help itself. The banks do not feel the strain
OF the gold redemption. The whole strain
rests upon the government ana the size OF the
gold reserve In the treasury has come TO be.
with OF without reason. the signal OF danger
or OF security. This ought 10 be stopped. II
we are to have an era of prosperity IN the
country with SUFFICIENT receipts for the ex-
penses OF the government. we may feel no i'm
sEediate embarrassment from our present cur
renc5; Urt the danger still exists ana will be
ever present menaGlhk Us 90 ioNg as the eAistlhe
system continues. And besides II is 10 times
OF adequate revenues and business tranquility
that the government should prepare for the
worst. We cannot avoid without serious con-
sequences the wise consideration and prompt
solution OF this question.
Secretary Cages Plan.
The secretary OF the treasury has outlined L !
plan in great detail for the purpose OF remOv-
ing the threatened recurrence OF q depleted
gold reserve and save us from future embar-
lSSmeu on that account. To this pluU In |
wife your careful consideration. 1 concur vita
the secretary OF the treasury 10 his recommen-
dalton that national banks be above To issue
notes to the face value OF the bonds which they |
deposited for circulation. and that the tax on \
circulating notes secured by deposit OF such
popds be reduced to One-half OF one per cent.
per anHCm. also join him In recommending
that authority be- given for the establishment
Of national banks with II minimum capital or
t25. 600 This will enable the smaller villages
- anrL.l,ILaral rnaLnna OF lie nn,lntr.. n T. |