The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1897-12-16
THE CURRENCY QUESTION.
Necessity of Putting Our Finances
Upon a Sound Basis.

Upon a Sound Basis.
Tariff legislation having been settled by
the extra session of congress, the question
next pressing for consideration is that OF
the currency. The work of putting our
finances upon a sound basis, difficult as it
may seem, will appear when we recall
the financial operation of the government
since ISi6. On the Both day of June Of
that year, we had outstanding demand
liabilities in the sum of S72S, $685. All Al. On
the lst day of July, 1879, these liabilities
mad been reduced to SAB, $50, ass 49, Of our
bearing obligations, the figures
are even more striking. On July 1, 1856,
the principal of the Understanding debt
Of the government was $685., 33l, 20S On
the lst day of July 1893, this sum had
been reduced 10 $3.50, 037, 100, or an aggre-
gate reduction Of $1,7i7, 294, 10S. The inter-
st-bearng debt of the United States on
the list day of December, 1897, was $751;
& $40 The government money now out
Standing December y consists of $780,
| SlOl6 OF United States notes; $10!, 1913, $50
Of treasury notes issued by authority Of
the act of 1890; 1884 1868, Boa of silver certlfi-
| Gates and SCI, $780, 61 of standard silver
dollars. ,
With the great resources of the govern
nent and with the time-honored example
Of the past before us, we should not hesi-
tate to enter upon a currency REVISION
which will make our demand obligations
less onerous to the government ana re-
neye our financial laws Il ON ambiguity
and doubt.
The brief review of what was accom-
plished from the close of the war until
1898 makes unreasonable and groundless
any dstrust either of our financial abil-
ly or soundness; while the situation from
1888 to 1897 must admonish congress of the
immediate necessity for so legsiatlng as
70 make the return of the conditions then
prevailing impossible.
There are many plans proposed as
remedy for the evil. Before we can mo
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 il is good: good because the govern
ments pledge is out to keep 1t SO, ana
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 fulfllment.
Evil of the Present System.
The evil Of the present system is found
! in the great cost to the government of
j 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 falriy
Prosperous conditions, while the past four
Years have demonstrated that 1t is not
only an expensive charge upon the gov
eminent, but dangerous menace to the
national credit.
| Ii 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
~ do
Exemptions of our demand obligations, or
Increase the gold reserve for their re-
demption. We have $500. 600 600 Of currency
which the government, by solemn enact
ment. has undertaken to keep at par with
gold. Nobody is obliged to redeem In
gold but the government. The banks are
no; required to redeem in gold. The Cow
eminent is obliged to keep equal with
sod all it's outstanding currency and coin
obligations, while it's receipts are not re-
CURED 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
team get 1t in no other way when 1t most
needs ii. The government without any
Gsd gold revenue is pledged to MAINTAIN
4 gold redemption, which it has steadily and
faithfully done, and which. under the au-
j 'hority 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
constant replenishment OF the goio re.
serve This is especially so IN times OF
business panic and when the revenues are
4 insufficient TO meet the expenses OF the
goyernment AT such times the govern
ment has no other way to supply It's oeI-
Nlt and maintain redemption but through
NE Increase of it's bonded debt, as during
NE administration of my predecessor
when s262, 3l5, 400 of ~ per cent bonds
were issued and sold and the proceeds
used to pay the expenses or the govern
ment in excess of the revenues and sustain
ne gold reserve While It IL true that
me greater part of the proceeds OF these
00hds were used to supply deficient reve-
,sues, considerable portion Was required
maintain the gold reserve.
RepIenixhing the Gold Reserve.
With our revenues equal to our expenses,
n ~ere would be no deficit requiring the 10
susnce of bonds. But II the gold reserve
a4ls below 500. 200. 900. how will It De re-
pienished except by selling more bones!
there any other way practicable unaer
visiting law? The serious question tnen
= Shall we continue the policy that mas
ven pursued in the past-that is. when the
solo reserve reaches the point OF danger,
asue more bonds and supply the neeoea
ssoid-or shall we provide other means
~prevent these recurring drains upon ~
wa reserye7 II no further see's'st'0n