Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1897-12-09
THE CURRENCY QUESTION.

the currency.
THE CURRENCY QUESTION.
President Reviews Existing Condi-
tions-Recommen
The work of putting our finances upon
a sound basis, difficult as it may seem, Will
appear easier when we recall the financial
operations of the government since 1866
On the Goth day of June of that year we
had outstanding demand liabilities in the
sum of $72S, 1868, AHA On the first of jan
uary, 1897, these liabilities had been re-
duced to $443 ,889 1883. Of our interest
bearing obligations, the figures are even
more striking. On July 1, 1885, the prin-
cipal of the interest-bearing debt OF the
government was 81, 1882 1871 POS. On the
first day Of July, 1898, this sum had been
reduced to $685., 037 100, or an aggregate re-
duction of 81 TAT 294 ,108. The interest-bear-
ing debt of the United States on the LIST
day of December, 1897, was $847 1868, $40.
The government money now outstanding
(Dec. u consists OF $346, 681 ,016 of United
States notes, $107, 793,2 S0 of treasury notes
ISSUED by authority of the law of 1890,
1884 1868, SOB of silver certificates and $751;
761 of standard silver dollars.
With the great resources of the govern
ment and with the honorable example of
the past before us, we ought not to hest
tate 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-
plished from the close of the war to 1898
makes unreasonable and groundless any
distrust either of our financial ability or
soundness, while the situation from 1893
to 1897 must admonish congress of the i'm
mediate necessity of so legislating as to
make the return of the conditions then
prevailing impossible.
Every Dollar Is Good.
There are many plans proposed as a
remedy for the evil. Before we can find
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 government S
pledge is out to keep it so, and that pledge
will not be broken. However, the guar
anty of our purpose to keep the pledge
will be best shown by advancing toward it's
fulfllment.
The evil of the present system is found
In the great cost of the government of
maint tanning 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 even under fairly
prosperous conditions, while the past four
years have demonstrated that it is not
only an expensive charge upon the govern
nent, bat 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 redemptions. We
must either curtail the opportunity for
speculation, made easy by the multiplied
redemptiOnS of our demand obligations, CT
increase the gold reserve for their re-
semption. We have S900,000,000 of cur
Tency which the government by solemn en-
l. 10 boo or
with gold. Nobody is obliged to redeem
in gold but the government The banks
are not required to redeem in gold. The
government is Obliged to keep equal with
gold all its 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 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 main
tain 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
funds demands a constant replenishment OF
the gold reserve. This is especially so il
times of business panic and when the reve-
nues are insufficient to meet the expenses
of the government.
At such times the government has nc
other way to supply its deficit and main
Hain redemption but through the increase
OF it's bonds. as during the administration
OF my predecessor, when $262 ,315, 400 of 4 r
per cent. bonds were issued and sold and
the proceeds used to pay the expenses Of
dhe 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 def
rient revenues a considerable portion was
required to maintain the gold reserve.
The Need Of Reform.
With our revenues equal to our expenses
there would be no deficit requiring the
issuance of bonds. But il the gold reserve
falls below $780, 900 900, how will il be re-
plenished except by selling more bonds
Hs there any other way practicable under
existing laws? The cerious question Their
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 shell we provide other means te
iprevent these recurring drains upon the
gold reserve? If no further legislation is
had and the policy of selling bonds is te
be continued then congress should give
the secretary Of the treasury authority te
sell bonds at long or short periods. bear
ang a less rate of interest than is nov
authorized by law
receipts OF the government are quite sufi
<ieht 10 pay all the expenses of the gov
eminent. that when any ~ thu Tyritaf