The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1897-12-10
GIVE SPAIN A CHANCE
BAYS M'KiNLEY'S MESSAGE TO
CONGRESS.
Notes Should not be Paid Out with
out Getting Gold In Return-RecI-
procity and Arbitration.

To the senate and house of representa-
Hives:
1t gives me pleasure to extend greeting
20 the fifty-fifth congress assembled I'm
regular session at the seat of govern
ment with many of whose senators and
representatives have been associated in
the legislative service. Their meeting oc-
ours under felicitous conditions, justify
ing sincere congratulations and calling
Tor our grateful acknowledgment TO a
beneficent Providence which has so sig
pally blessed and prospered us as a ma
tion. Peace 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
mnifcation of all sections of our country,
the incompleteness of which has too long
delayed realization of the highest bless
ings of the union. The spirit of patriot
ism is universal and is ever increasing
in feryor. The public questions which
now most engross us are lifted far above
either craftsmanship 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 in
Improvement of the public service. APP
peal to the individual conscience of every
earnest citizen, to whatever party ne
belongs, or in whatever section of the
country he may reside.
The extra session of congress, which
closed during July last. enacted import
ant legislation. and while its full effect
has not yet been realized, what 1t has
nj M M Re
timellness and wisdom. To test its per-
manent value further time will be re-
duired, and the people. satisfied with its
operation and result thus far are in
no mind to withhold from it a fair trial.
Currency Legislation Needed.
Tariff legislation having been settled by
the extra session of congress the ques-
ton next pressing for consideration is
that of the currency. The work of put
ting our finances upon a sound basis, diff
ncult as It may seem. will appear easier
when we recall the financial operations
of the government since 1866. On the
Both day Of June of that year we had out
standing demand-liabilities in the sum of
S72S, SOS, 447 Al. On the first OF January,
1879. these liabilities had been reduced to
t443,SS9, 495 IS. OF our interest bearing
striking. On July /. 1866. the principal of
the interest bearing debt of the govern
ment was s2,332331,2OS On the first day
of July, 1898. the sum had been reduced to
1856, 037, 100, or an aggregate reduction of
N,7f1, 294,10S. The interest bearing debt of
the United States on the first of Deem
Der, 1897, was $S7,S65.62O. The govern
ment money now outstanding December
d consists of $3466S1, O16 of United States
notes, $l07 1893, $50 of treasury notes issued
by authority of the law of 1890. 1884, $685.,
standard silver dollars.
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 currency revision
which Will make our demand obliga-
lions less onerous to the government, and
relieve our financial laws from ambiguity
and doubt The brief review Of what was
accomplished from the close of the war
TO 1893, makes unreasonable and ground
less any distrust either of our financial
ability or soundness: while the situation
from 1893 to 1897 must admonish congress
OF the Immediate necessity of so legis,at-
ing as to make the return of the condi-
TORS then prevailing impossible.
There are many plans proposed as
remedy for the evil. Before we can find
the true remedy we must appreciate the
real evil. II is not that our currency of
every Kind Is not good, for every dollar
pt II is good-good because the govern
ments pledge Is out to keep 1t so, and
the guaranty of our purpose to keep the
pledge will be best shown by advancing
toward its fulfillment. The evil of the
present system Is found in the great cost
TO the government of maintaining the
parity of our different forms of money
that is keeping al of themsat par with
gold. We surely can not be longer heed
less of the burden this imposes upon the
people, even under fairly prosperous con-
ditions, while the past four years have
demonstrated that 1t is not only an OK
pensive charge upon the government, but
dangerous menace to national credit 1t
is manifest that we must devise some
plan TO protect the government against
bond issues for repeated redemptions. We
must either curtail the opportunity for
speculation, made easy by the multiplied
or increase the gold reserve for their re-
dempuon. We have 5000 100000 of currency
which the government, by solemn enact
ment, has undertaken to keep al par with
gold. Nobody is obliged to redeem in gold
but the government. The banks are not
required TO redeem in gold. The govern
ment is obliged to keep equal with gold
all it's outstanding currency and coin obli-
cations, while its receipts are not re-
Guired to be paid in gold They are So paid
only means by which the government can
with certainty get gold is by borrowing.
rsos tan needs if. The Government. without
any fixed gold revenue, is pledged to
maintain gold redemption which II has
steadily and faithfully done and which,
continue to do.
The law which requires the government
after having redeemed it's United States
notes. to pay them out again as current
funds demands a constant replenishmcnt
OF the gold reserve. This is especially so
in times 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 10 sup
ply its deficit and maintain redemption
hut through the Increase of its bonded
debt, as during the administration of my
PREDECESSOR, when $262 1915, 400 of 1-2 per
cent bonds were issued and sold and the
proceeds used 10 pay the expenses OF the
government in excess of the revenue and
SUSTAIN the gold reserve. While II Is true
that the greater part OF the proceeds of
these bonds was used to supply deficient
revenues a considerable portion was re-
ouired to maintain the gold reserve.
with orr revenues equal to our eX-
penses there would be no deficit requiring
the Issuance of bonds. But IL the gold
reserve falls below $l00.0OO,OOO. how will II
be rcplenished except by selling more
bonds? Is there any other way practi-
cable under existing law? The serious
question then is, shall we continue the
policy that has been pursued in the past;
that is when the gold reserve reaches the
polnt Of danger. issue more bonds and
supply the needed gold. or shall we pro-
vide other means to prevent these recur-
ring drains upon the gold reserve? II
=. De-. Nu1 -