The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1897-12-09
PRESIDENTS MESSAGE,
TO the Senate and House Of Repre-


tors and representatives | have been
associated in the Legislative service.
Ihelr meeting occurs under felicitous
circumstances, justifying sincere con-
graduation and calling for our grateful
acknowledgment to beneficent Provi-
dence which has so sgnally blessed and
prospered us as a nation. Peace and
goodwill with all the nations of the
earth continue unbroken
matter of genuine satisfaction is
the growing feeling of fraternal regard
and unification Of all sections of our
country, the incompleteness of which
has too long delayed realization Of the
highest blessings of the Union. The
spirit OF patriotism is universal, and is
ever increasing in fervor. The public
questions which now most engross us
are H1ted far above either PARTISAN
snip, prejudice or former sectional diff
1erences. They affect every part Of our
common country alike and permit of no
division on ancient lines. Questions of
foreign policy, Of revenue, the sound
ness or the currency, the inviOlablity
OF national obligations, the improve
mcnt of the public service, appeal to
the individual conscience Of every earn
est citizen to Whatever party he be
| longs or in whatever section of the
country he may reside
The extra session of this congress,
which closed during July last enacted
important legislation and while it's
full effect has not yet been realized,
what it has already accomplished as
sureS us of its timeliness and wisdom.
To test it's permanent value further
time will be required, and the people,
satisfied with its operation and results
thus far, are in no mind to withhold
from it a fair trial.
Tariff Legislation having been settled
| by the extra session of congress, the
question next pressing for consideration
is that Of the currency
THE FINANCIAL PROBLEM
| The work Of putting our finances upon
sound basis, difficult as it may seem,
I will appear easier when we recall the
| financial operations of the government
! since 1866 With the great resources
! OF the government and with the hon
orable 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-
! 1898 makes unreasonable and ground
| less any distrust either of our financial
| ability or sOundneSS, while the Situa-
| ton from 1898 to 1897 must admOniSh
! congress of the Immediate necessity of
| so leglS1ating as to make the return of
| the conditions then prevailing impossi-
| BILE.
There are many plans proposed as a
| remedy for the evil. Before we can
| find the true remedy must appre-
| ciate the real evil. 1t is not that our
| currency of every kind is not good, for
| every dollar of it is good; good because
| the governments pledge is out to keep
1t so. and that pledge will not be brok-
| en-. However, the guaranty of our pur-
pose to keep the pledge will be best
| SHOW by advancing toward it's full
| tllment.
The evil of the present system is
found in the great cost to the govern
ment of maintaining the parity of our
| different forms of money-that is, keep
! ing all of them at par with gold. We
| surely cannot be longer needless of the
| burden this imposes upon the people,
! even under fairly prosperous cOndi-
| tiOnS. while the past four years have
| demonstrated that it is not only eXpen-
| sive charge upon the government, but a
| dangerous menace TO the national
credit.
1t is manifest that we must devise
| some plan to protect the government
| against bond issues for repeated re-
| demptions. We must either curtail the
! opportunity for speculation, made easy
by the multiplied redemptions Of our
| demand obligations. or increase the
sold reserve for their redemption. We
| have 5000 600. 600 of currency which the
| government by solemn enactment has
undertaken to keep at par with gold.
| Nobody is obliged to redeem in gold
but the government. The government
| Is Obliged to keep equal with gold all its
| outstanding currency and coin obli-
| cations. while its receipts are not re-
| auired to be paid in gold and the only
| means by which the government can
with certainty get gold is by borrowing.
The government without any fixed gold
| revenue is pledged to maintain gold re-
demption. which it has steadily and
faithfully done, and which under the
| authority now given 1t will continue
| to do.
REPI.ENISHING GOLD RESERVE
| ment. after having redeemed it's United
| States notes to pay them out again as
! currency funds demands a constant re-
plenishnlent of the gold reserve. This
is especially so in times of business
panic and when the revenues are insult
! ficient to meet the expenses of the gov
ernment At such times the govern
| ment has no other way to supply Its
deficit and maintain redemption bu;
through the increase of its bonded debt
as during the administration of my
predecessor, when S262, ,S15, 400 of Az pei
! cent bonds were 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 the greater part
of the proceeds of these bonds were
used to supply deficient revenues, &
/ considerable portion was required tC
maintain the gold reserve.
I earnestly recommend that as soor
as the receipts of the government are
quite sufficient to pay all the expen
. ses of the government, that when any
: of the United States notes are presented
for redemption in gold, and are redeem
ed in gold such notes shall be kept an(
set apart and only paid out IN eX
change for gold. This is an obvious
1uty If the holder of the United
states notes prefers the gold and get
1t from the government he should no
receive back from the government {
United States note without paying gol'
in exchange for it. The reason for thi
is made all the more apparent when tn
government issues an interest bearin:
debt to provide gold for the redemp
ton of United States notes-a non
interest bearing debt. Surely 1t snoul
not pay them out again except on de
mand. and for gold. If they are pu
out in any other way they may return
to be followed by another bond lssu
: TO redeem them-another interest pear
ing debt to redeem a non-lnterest pear
ing debt.
In my view it is of the utmost I'm
portance that the government shou'o