The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1897-12-14

4u0V are pAlQ III every E4uu VI u4u1Oy
but gold, and the only means by which
the government can with certainty get
gold is by borrowing. Il can get it in
no other way when it most needs it.
The government, without any fixed
gold revenue, is pledged to maintain
gold redemption, which it has steadily
and faithfully done, and which, under
the authority now given, it will con,
| tinue to do.
"The law which requires the govern
ment, after having redeemed it's United
States notes, to pay them out again as
current funds, demands a constant re
Punishment of the gold reserve. This
is especially so at times of business
panic and when the revenues are in
g sufficient to meet the expenses of the
government.
CLEVELANDS BOND ISSUES AS A WAR
ING
At such times the government has
no other way to supply it's deficit and
maintain redemption but through the
increase of it's bonded debt, as during
the administration of my predecessor,
when 1862 315, 400 Of A per cent. bonds
we're issued and sold and the proceeds
went to pay the expenses of the gov
eminent in excess Of the revenues and
sustain the gold reserve, While it is
true that the greater part Of the pro
ceeds of these were used to supply de-
icient revenues, a considerable portion
was required to maintain the gold re
serve.
with our revenues equal to u ex-
penses, there would be no deficit re
curing the issuance of bonds. But if
the gold reserve falls below 800, 900,
900, how will it be replenished except
by selling more bonds7 Is there any
other way practicable under existing
laW9 The question then is, shall we
continue the policy that has been pur-
sued in the past; that is, when the gold
reserve 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 reserve9 If no further legis
lation is had and the policy of selling
bonds is to be continued then Congress
should give the Secretary of the Treas
ury authority to sell bonds at long or
short periods, bearing a less rate of in
terest than is now authorized by law.
GOLD FOR UNITED STATES NOTES BOTH
DIN N COMING
Il earnestly recommend, as soon as
the receipts of the government are
quite sufficient to pay ali the expenses
of the government, that when any Of
the United States notes are presented
for redemption in gold and are r q
deemed in gold, such notes shall be kept
and set apart, and only paid out in ex
change for gold. This is an obvious
duty. If the holder of the United States
note prefers the gold and gets it from
the government he should not receive
back from the government a United
States note without paying geld in ex
change for it. The reason for this is
made all the more apparent when the
government issues an interest bearing
debt to provide gold for the redemp
tion of United States notes-a o in
terest bearing debenture-and should
not pay them out again except on de.
mand, and for gold. If they are put
in any other way they would return
again to be followed by another bond
issue to redeem them-another interest
bearing debt to redeem a non interest
be airing debt.
THE BANKS SHOULD BEAR SOME OF THE
BURDEN.
"In myview, it is Of the utmost i'm
portance that the government should
be relieved from the burden of provid
ing all the gold required for exchanges
and export. This responsibility is alone
borne by the government without any
necessary backing powers to help it's
relief. . The banks do not feel the strain
of gold redemption. The whole strain
rests upon the government and the size
of the gold reserve in the treasury has
come to be, with or without reason, the
signal of danger or Of security. This
ought to be stopped. II we are to have
an era of prosperity in the country,
with sufficient receipts for the expenses
of the government, we may feel no i'm
mediate embarrassment from our pref
ent currency, but the danger still exists
and will be aver present, menacing US
SO long as the existing system continues.
And besides, it is in times OF adequate
revenues and business tranquility that