The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-12-08

Cnt with a treasury condition so extend
ed in a time of peace as TO bring panic
and alarm to our own people before the
first sound of the Cnemy's guns. In mod
crn days well-supphed war chest with
an impregnable credit is as important as
are war ships, shore batteries, or rcgi-
mcntS of men.
THE advantages of a strong position in
the national treasury, with it's accom-
panying benefits to all commercial inter-
csts and great reinforcement Of the pub
| lie credit, can, | believe, be secured with
| out any unsettling legislation, in man.
ner easy to be comprehended by ALL and
with small cost to the people. The rec
concentrations I make must be con-
Strued as tentative steps in a direction
| which, If consistently pursued, will ul-
| timately lead to conditions theoretically
desirable rather than as being in them
| selves final measures to that end The
condition of the treasury in its relation
| to demand obligations requires that one
Of two steps be taken. The one may be a
large reinforcement of the permanent
gold reserve; the other may be by an inn
portant reduction in the Objectionable
form Of liabilities, The latter is, in my
| opinion, the more desirable.
RECOMMENDATIONS.
"First-I recommend that proper legis-
! lation be enacted which will establish,
separate and apart from the ordinary
| operations Of the treasury as they relate
to revenue and expenditures, a depart
mcnt to be designated and known as the
| issue and redemption division. To this
| division the sum of $l2j,OyU,O1O in gold
! should be set over from the general fund
| in the treasury, to be used for redemp-
| tion purposes, and all the silver dolars
| now held for redemption of silver ccr-
| tihcates, and all the silver bullion and
| dollars coined thercfrOm, bought under
| the act of 1890, should be passed to the
| same account. Further that the sum of
! 500 O0O,O0o i'm the legal tender notes of the
| United States known as grecnbacks be
| collected as hereinafter described. and de-
! posted in the said issue and redemption
| division, to be dsbursc thcrefrom only
| upon the receipt i'm exchange therefor Of
| an equivalent amount of gold coin Such
| gold, when 50 secured, to bc held I'm said
| division as part Of the general redemp-
tion fund.
"Second-I recommend that provision
| be made for the issue of rcfunding loan
| bonds, payable after ten years at the
| pleasure of the government, such bonds
| to bear interest at the rate of ~ per cent
per annum, payable, principal and inter-
| est, in gold coin; and that the secretary
| of the treasury be authorized to issue
such bonds and receive in payment there
for with am equitable allowance for the
the outstanding loans of the United
| States which mature by their terms Of
payment in the years 1901, 1907 and 1925.
ADVANTAGES.
"The advantage involved in the pro-
| posed action lies in this: 1t removes an
ambiguity from our contract obliga ions
! an ambiguity which affects unfaVorably
! the government credit. The word coin,
now used to express the obligation i'm the
] mn do - an, ..
no doubt understood by the more discrim-
| mating public creditor to mean gold coin
and the solemn act of congress pledging
the maintenance Of silver coin upon a
parity with gold coin makes II imposs BILE
to construe the word 'coin,' as therein
used, To mean anything other than gold
or It's iull equivalent. Yet as this is a
conclusion of logic rather than a clear
statement Of fact, the simpler apd more
humble investors or WOuld-be investors
In the public debt are confused and
doubtful, ana the public credit is the
weaker therefor.
"Nor is the course thus recommended
without wise precedent. The earlier is
sues Of our government bonds were pay-
able in dollars with greenbaclls legal
tender, with gold and silver on a sub
stantial commercial parity, but both at a
large premium over paper money, a sim.
ilar question arose What did dollars
mean? And i'm 1863, TO remove all doubt
upon the subject an act was passed sol
emnly plcdging the faith Of the United
States to the Payment in coin or its
| equivalent Of an its intcrost-bearing OBJ
legations, except when otherwise express
ly provided i'm the law. The commercial
disparity between our leEal-tcnder dol.
lars and coin was not then essentially
greater than the present commercial dis
parity between silver and gold. This act
Of 1863 was tudicious 70 refund our out
standing bonds now payable i'm coin into
bonds payable in gold would strengthen
and confirm the public credit and put US
i'm a position to command the markets OF
the world for our securities on the most
| advantageous terms.
ut may be objected that the adoption