Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1897-10-01
THE CURRENCY QUESTION.
Necessity of Putting Our Finance
lnOn n Sound 6DSis

Tar.T legislation having been settled by
the extra session of congress, the uueSti ion
next pressing for consideration is that ot
the currency. The work OF putting our
finances upon sound basis, difficult as it
may seem. viii apps when We recall
the financial operation of the Covernme 1T
since 1866. On the o1th day of June OF
that year, we had outstanding demand
liabilities in the sum of s12s,S5S AZ Al. On
the Is. DAY OF July, 1879. these liabilities
had been reduced 10 SAB. .4t5 IS. OF our
interest bearing obligations, the figures
are even more striking. On July /, 1866,
the principal OF the interest bearing debt
of the government was s.. s. 81 2oS. On
the LIST day of July, 1893, this sum had
been reduced to s5S5 .0S7 l00 or an aEgre-
gate reduction of S1,747, 23i. los. The inter-
est-bearng debt of the United States on
the 1st day of December, 1897, was SSH
365, G20. The government money now out
standing December u consists of $Si6.-
6sl,0i6 of United States notes; slO7, 1884, $50
of treasury notes issued by authority of
the act of 1890: $751; 963, 504 of silver certih-
Gates and Sol. $50. 76l of standard silver
dollars.
With the great resources OF the govern
ment and with the tnle-hoiiored example
OF the past before u.s. we should not hest
tate to enter upon a currency revision
which will make our demand obligations
less onerous to the government and re-
lieve our financial laws tom ambiguity
and doubt.
The brief review OF what was accom-
plished from the close of the war until
1893 makes unreasonable and groundless
any distrust either Of oGr financial abi
ity or soundness; while the situation from
1923 TO 1897 must admonish congress of the
immediate necessity for so legislating as
to make the return of the conditions then
prevailing impossible.
There are many plans proposed as
remedy for the evil. Before We can lind
the true remedy we must appreciate the
real evil. 1t Is not that our currency OF
every kind Is not good. for every dollar
of 1t is good: good because the govern
ment's pledge is out to keep Il SO, and
that pledge will not be broken. How
ever. the guaranty of our purpose to keep
the pledge will be best shown by advanc
ing toward is fulfilment.
Evil of the Present system.
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 all OF
them at par with gold. We surely cannot
be longer needless of the burden this i'm
poses upon the people, given under fairly
prosperous conditions. while the past four
years have demonstrated that 1t Is not
eminent. 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 redemptions. We
must either curtail the opportunity for
speculat ion, made easy by the multiplied
redemptions Of our demand obligations, or
increase the gold reserve for their re-
demption. We have 100000 900 of currency
,f,t, ,anf hx, ~ol1
ment, has undertaken to keep at par with
gold Nobody is obliged to redeem in
gold but the government. The banks are
not required to redeem in gold. The gov
eminent is obliged to keep equal with
gold all it's outstanding currency and coin
obligations, while its receipts are not re-
Qured to be paid in gold. They are paid
in every kind of money but gold. and the
only means by which the governpent can,
with certainty, get gold is by borrowing.
1t can get it in no other way when 1t most
needs 1t. The government without any
fixed gold revenue Is pledged to maintain
gold redemption, which 1t has steadily and
faithfully done, and which, under the au-
thority now given, it will continue to do.
The law which requires the government.
after having redeemed its notes, to pay
them out again as current funds demands
a constant replenishment of the gold re-
serve This Is especially so in times of
business panic and when the revenues are
insufficient to meet the expenses of the
government. At such times the govern
ment has no other way to supply its def
fcit and maintain redemption but through
the increase of it's bonded debt. as during
the administration of my predecessor,
when GIBBS, 400 of AZ per cent bonds
were issued and sold and the proceeds
used to pay the expenses OF the govern
ment 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 reve-
nues, a considerable portion was required
to maintain the gold reserve.
RepIenishinE the Gold Reserve.
With our revenues equal to our expenses,
there would be no deficit requiring the is
suance of bonds. But IL the gold reserve
falls below sl00,000,G00, how will 1t be re-
p,enished except by selling more bonds?
Is there any other way practicable 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 point of danger,
issue more bonds and supply the needed
gold-or shall we provide other means
70 prevent these recurring drains upon the