Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1897-12-07

ment, but dangerous menace to the ma
tional credit.
1t is manifest that we must devise
some plan to protect the government
against bond issues for repeated redemp-
tlons. We must either curtail the op-
portunity for speculation, made easy by
the multiplied redemptions of our de-
mand obligations, or increase the gold re-
serve for their redemption. We have
O,0O0UO9 of currency which the govern
ment by solemn enactment has under
taken 10 keep at par with gold. Nobody
is Obliged to redeem in gold but the gov
eanment. The banks are not required to
redeem in gold The government 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
certainty get gold is by borrowing. 1t 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 continue to
do.
The law which requires the government
after having redeemed it's United States
notes to pay them out again as current
AuutS t0JldlUS Il COu5btHb rcplcnlsnll1GllU
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 to sup
Ply its deficit and maintain redemption
but through the increase of its bonded
debt, as during the administration of my
predecessor, when $685., 315, 400 of four and
n h1l nav hon a ircII ~
and the proceeds used to pay the expenses
of the government in excess of the reye-
nues and sustain the gold reserve. While
II IS true that the greater part of the pro
ceeds OF these bonds were used to supply
deficient receipts, a considerable portion
was required to maintain the gold re-
serve.
With our revenues equal to our ex-
penses, there would be no deficit requir-
ing the issuance of bonds. But ii the
gold reserve falls below 100000 900, how
Viii it be replenlshed except by selling
more bondsy Is there any other way
praeti able under existing law? The
serious question then is, shall we CON
tinue tie policy that has been pursued in
the pas, . that is, when the gold reserve
reache. he point of danger, issue more
bonds and supply the needed gold, or SHAH
we provide other means to prevent these
recurring drains upon the gold reserve?
Ii no further legislation is had and the
policy OF selling bonds is to be continued,
then CONGRESS should give the secretary of
the treasury authority to sell bonds at
long or short periods, bearing a less rate
of interest than is now authorized by law.
Il. quirc Gold For GrtenbaclSs.
earnestly recommend as soon as the
receipts of the government are quite sufli-
Gent to pay all the expenses of the gov
eminent, 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
gets it from the government, he should
not receive back from the government a
United States note without paying gold
in exchange for it. The reason for this is
made all the more apparent when the
government issues all interest-bearing
debt to provide gold Tor the redemption
of United States notes-a non-intereSt-
bearing debt Surely it should not pay
them out again except for demand and for
gold If they are put out in any other
way, they may return again to be fol-
lowed by another bond issue to redeem
then-an Understanding debt to redeem
a MISUNDERSTANDING debt.
In my view it is of the utmost import
ance that the government should be
relieved of the burden of providing all the
gold required for exchanges and export.
This responsibility is alone borne by the
government without any of the usual and
necessary banking powers to help itself
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 dan
ger or of security. This ought to be
stopped
If we are to have an era of prosperity in
the country, with sufficient receipts for
the expenses of the government, we may
feel no immediate embarrassment from
our present currency; but the danger still
exists and will be ever present menacing
us so long as the existing system con-
tinues. And besides, it is in time of ade-
quate revenues and business tranquility
that the government should prepare for
the worst. We cannot avoid without
serious consequences the wise considera-
ton and prompt solution of this question.
Plan of Gage Endorsed.
The secretary of the treasury has out.
lined a plan in great detail for the pur
pose of removing the threatened recur.
rance of depleted gold reserve and save
us from future embarrassment on that
account To this plan invite your care
full consideration.
/ concur with the secretary of the treas.
ury in his recommendation that the ma
tional banks be allowed to issue notes te
the face value of the bonds which they
have deposited for circulation, and that
the tax on circulating notes secured by
deposit of such bonds be reduced to one.
half of one per cent per annum. L also
Join him in recommending that authority
be given for the establishment of ma
f1at be min