The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1897-12-08
CURRENCY LEGISLATION.
Congress Should Not Hesitate TO En-
ter Upon Revision.


Congress Should Not Hesitate to En-
ter Upon Revision.
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 sound basis, ditilcult as II
may seem, will appear easier when we re-
call the financial operations OF the govern
ment since 1916. On the 10Th day of June
Of that year we had outstanding demand
liabilities in the sum OF S2S, ,S6S, ,4ilI. OF
the lst OF January, 1879, these Liabilities had
been reduced to $443, ,SS9 1855. OF our in
t-bearlng Obligations, the figures are
principal of the nterest-bearing debt OF
the government was 2,5S2, ,SSl 2US. On tho
first day of July, 1875, this sum had been
reduced to $685., lOO, or an aggregate re-
ing debt of the United States on the first
day of December, 1897, was So4i 5b5,GzO The
government money now outstanding (De-
cember y consists of SS46, GSl ,0l6 of United
issued by authority OF the law of 1870. 1884,
9G3,5O3 of silver certificates. and $6l,2SU. .7Gl
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 hesi-
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.
No Ground for Distrust,
The brief review of what was accom-.
pllshed from the close OF the war TO 1893
makes unreasonable ana grounCless any
oistrust either OF our financial aDnIty or
soununess, while the situation from 1898
to 1877 must admonlsh congress OF The i'm
mediate necessity of SO legislatng as 10
make The return OF the conditions then
prevailing Impossible. There are many
plans proposed as a remedy for the evil.
Before We can md the true remedy we
must appreciate the real evil 1t Is not
that our currency OF every KIND is not gouu,
for every dollar of IL is good; good because
the government pleuge Is out TO keep 1t
so, and that pledge will not be broken
However, the guaranty of our purpose to
keep the pledge will be best shown by
advancing toward its fulfillment
EVIL of the Present System.
The evil of the present system is found in
the great cost 10 the government OF maln-
tanning The parity oil our different forms ur
nIoney-lhat IS, Keeping all OF them a par
with gold. We surely cannot be Longer
heeuiess OF the burden this imposes upon
the people, even under ialrly prosperuhs
conditions, while the past four years have
demonstrated that II Is not only an ex-
pensiVe charge upon the government but
dangerous menace to the national credit.
Must Provide Against Bond Issues.
Ii is manifest that We must devise some
pond Issues Iur repeated feuenptlohs. We
must either curtail the opportunity fol
speculation, made easy by the multiplied
redemptionS OF our demand Obligations or
increase the gold reserve for their redemp-
ton. We have S9O0,0U0UUO of currency
which the government by solemn enact
ment has undertaken 10 Keep at par with
gold. Nobody Is obliged 10 redeem in gold
but the government. The banks are no,
required 10 redeem in gold The govern
ment is obliged TO keep equal with gold all
its outstanding currency and coin obiga-
tions. while its receipts are not required
10 be paid In gold. They are paid in every
kind OF money but gold, and the only means
by which the government can with GER
tainty get gold Is by borrowing. Ii can get
Il In no other way when 1t most needs ii,
The government without any fixed gold
revenue Is pledged TO maintain gold re-
demption, which II has steadily and faith
fully done, and which under the authori-
~ now given 1t Will continue TO do.
The law which requires the government
after having redeemed Its United States
notes TO pay them out again as current
FUNDS demands constant reDlenishment
oil the gold reserve. This is especially SO
In times OF business panic, and when the
revenues are ihsuinclent 10 meet the en-
penses OF the government. AT such times
the government has no other way 10 sin.
ply its deficit and maintain redemption biIt
through the lhgrease Uf its bonded debt M
during the administration Of my predeces-
sor, when S2O2,Sl5,IUU VI Az per cent. bonds
were issued and sold ana Ihe Proceeds us,.n
TO pay the expenses Of the government in
excess OF the revenues and sustain ,he
goia reserve. Whlle It is true that the
greater part OF the proceeds OF these bonus
was used 10 supply deficient revenues ~
conSlueraDle portion was Required To main
tain the gold reserve.
Z With our revenues equal TO our expens.s
there would be no deiicit reuuIrli,p = M. ~.
suance or bonds But II the gold reserwa
1alls below $lOO,OOOUW how Will IL be re-
!PienIsned eXcept py selling more bonus?
III
existing law? The serious Question: ihpn 10.
Shall we continue the policy that has been
pursued IN the past-that is, when The gold
reserve reaches the point OF danger issu.
more bonds and supply the needed eoiG or
shall we provide other means TO prevent
these recurring drains upon the gold re-
sSrV9 ser nol,cI m no t1rther legislation is had and
ued, then congress should give the seers-
tary OF Inc treasury authority to sell bonds
~ long or short periods, bearing less rate
oi interest than is now authorized by law,
4 An Obvious Duty.
earnestly recommend as soon as the
receipts OF the government are quite SUI
ticient 10 pay all the expenses oil the gov
ernment that when any OF the United
States notes are presented for redemption
In gold and are redeemed in gold such notes
shall be Kept and set apart and only paid
ouI IN exchange for gold. This is An oh
yious duty. II the holder OF the United
States note prefers the gold and gers il
lTOIn the BONeTHHleHt ne SnOuld not feceiva
back from The government a United SiHtes
note without paying gold in exchange FOR
IL. The reason to- this Is made ali The
more apparent wheti the government ISSUES
an interest bearing debt TO provide on III
for the redemption VI United States nAtcaN
a noninterest- -bes-ing debt. Surely n
should not pay thsin out again exceE on
demand and for geld. II they are put out
In any other way they may return again, 10
be followed by an&her bond issue to re-
deem then-another interest bearing debt
to redeem Misunderstanding debt.
IndOrses Secretary Cages Plan.
The secretary of the treasury has out
lined a plan In great detail for the purpose
OF removing the threatened recurrence OF
a depleted gold reserve and saving US from
future embarrassment on that account. To
this plan invite your careful considera-
tion. l concur with the secretary OF the
treasury In his recommendation that ma
tional banks be allowed to issue notes 10
the face value OF the bonds which they
have deposited for circulation, ana that the
tax on circulating notes secured by deposit
on such bonds be reduced TO one-nalf OF one
per cent. per annum. l also join him In
Recommending that authority be given for
the establishment Of national banks with
a minimum capital OF $4,000. This Will
ena'ie the smaller villages and agricultural
regions OF the country to be supplied with
currency to meet their needs Irecommend
that !hs Issue OF national bank Lotes be re-