The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1897-12-08
CURRENCY THE MAIN QUESTION.
Calls Attention to What We Have Done
and What Is To BE Done.

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 up
on a sound basis, difficult as it may
SEEM will appear easier when we recall
the finacial operations Of the govern
ment since 1866. The president then
gives q review of the financial operation
of the government since the war; The
brief review of what was accomplished
from the close of the war TO 1893 makes
unreasonable and groundless any dis
trust either of our financial ability or
soundness; while the situation from
1893 to 1897 must admonish congress OF
the immediate necessity Of so leSiSlat-
ing as TO make the return of the cOndi-
tons then prevailing impossible. 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 ii is good good because the govern
ment's pledge will not be broken. How
ever, the guaranty Of our purpose to
keep the pledge will be best shown by
advancing towards it's fulfillment.
The evil of the present system is found
I: 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 cam
not longer be Needless of the burden
this imposes upon the people even un
der fairly prosperous conditions, while
the past four years have demonstrated
that ii is not only an expensive charge
upon the government but dangerous
menace of the national credit II is
manifest that we must devise some plan
TO protect the government against bond
issues for repeated redemptions We
speculation, made easy by the multi
piled redemptions of our demand OBJ
legations, or increase the gold reserve
for their redemption.
We have 5000, 900, 900 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 banks
are not required to redeem in gold The
government is obliged to keep equal
with gold all its outstanding currency
and gold obligations. while it's receipts
are not required 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 IL in no
other way when IL most needs IL. The
government without any fixed gold rev.
enue is pledged to maintain gold re-
demption. which il has steadily and
faithfully done and which under the au-
thority now given II will continue TO
do so.
The law which requires the govern
ment after having redeemed its United
states notes to pay them out again as
current funds demands constant re-
punishment of the gold reserve. This
Is especially so in times of business
panic and when the revenues are in
sufficient TO meet the expenses OF the
government. At such Tins the govern
ment has no other way TO supply it's
deficit and maintain redemption. but
through the increase OF it's bonded
debt, as during the administration of
my predecessor, when $780,, 315, 400 of
AZ per cent bonds were issued and sold
and the proceeds used TO pay the ex-
penses of the government in excess Of
the revenues and sustain the gold re-
serve. While II is true that the greater
part OF the proceeds of these bondg
were used TO supply deficient revenues,
considerable portion was required to
maintain the gold reserve. without
revenues equal to our expenses there
would be no deficit requiring the is
suanc OF bonds. But IL the gold re-
serve falls below 800. 900 900 how will
IL be replenished except by selling more
bonds? Is there any other way prac-
tcable under existing law?