Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1897-12-17
= THE CURRENCY QUESTION.
President Reviews Existing COndi.
tiOns-lsccom ncndatiOna.

tiOna-tsccom sn cndatiOns.
The work Of putting our finances upon
a sound basis. difficult as 1t may seem, will
appear easier when we recall the financial
operations of the government since 1856.
On the goth day of June of that year we
had OUTSTANDING demand liabilities in the
sum of $i2S. SOS. 4i7.4l. On the first OF jan
uary. 1897. these liabilities had been re-
duccd to $443, SS9, iY5. So. or our interest
bearing obligations. the figures are even
more striking. On July 1. 1866, the prin-
cipal OF the DEMONSTRATING debt of the
government was Sa2,332 1921, 2OS. On the
first day of July, 1898. thts sum had been
reduced to $3.50 .037. 100, or an aggregate re-
duction of $1,747. 294, l0S. The interest-bear-
ing debt of the United States on the 1st
day Of December. 1897. was $s47. 1865 $50.
The government money now outstanding
(Dec. ~ consists Of s34G. GS1 .O16 of United
States notes. s107, 793, $50 OF treasury poteS
issued by authority of the law of 1890,
1884 ,963, 500 of silver certificates and $G1,-
$50. .6l OF standard silver dollars.
With the great resources Of the govern
mcnt 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 avs from ambiguity and
doubt.
The brief review of what was accom-
plished from the close of the war to 1893
makes unreasonable and groundless any
distrust either Of our financial ability or
eoundness, while the situation from 1893
TO 1897 must adinonish congress Of the i'm
mediate necessity of go legislating as to
make the return of the conditions then
prevailing impossible.
Every Dollar In 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 ia not that our currency of
every kind is not good, for every dollar of
II IS good-good because the governments
pledge is cut 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 ito
fulfl,ment.
The evil of the present system is found
in the great cost of the government of
maintaining the parity Of our different
forms of money; that is. keeping all Of
them at PAR with geld. 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
ment, but a 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 redcmptions. We
must either curtail the opportunity for
speculation. made easy by the multiplied
redemptions of our demand obligations, or
increase the gold reserve for their re-
demption. We have $500, 900. 900 of cur
rency which the government by solemn en-
actment 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 coin
obligations. while its 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.
1t can get it in no other way when it
most needs 1t. The government without
S9y fixed gold revenue ie pledged to main
tain gold redemption. which 1t has steadily
and faithfully done and which under the
authority 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 a constant replenishment of
the gold reserve. This is especially so In
times OF business panic and when the reve-
MUGS are insufficient to meet the expenses
of the government.
AT such times the government has no
other way to supply it's deficit and MAIN
tain redemption but through the increase
of it's bonds. as during tho administration
OF my predecessor, when $3.50 ,315. 400 of Az
per cent. bonds were issued and sold and
the proceeds used to pay the expenses of
the 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
Gent 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 if the gold reserve
falls below 500. 600, 600, how will it be re-
pienishei except by selling more bonds?
Is there any other way practicable under
existing laws? The serious question then
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 sholl we provide other means to
prevent these recurring drains upon the
gold reserve? II no further legislation is
had ana The policy OF selling bonds Is to
he continued then congress should give
the secretary ~ tide treasury authority to
So bends At ! ,g or sncrt periods. bear
ira a less rate CT interest than Is nov
g. fhrri2oi ty las.
i oarue.:iiy recommend. as soon as the
t.asir;s % fac government are quite sunl-