Crawford avalanche. (Grayling, Mich.) 1879-19??, 1897-12-09

the extra session of Congress the question
next pressing for consideration is that OF
the currency.
THE CURRENCY QUESTION.
rresiacnt Reviews Existing Condi-
Ee tfons-Reccm nm endations.
The work Of putting our finances upon
a sound basis, difficult as II may seem, Will
appear easier when we recall the nnanclai
operations of the government since 1866.
On the 30th day of June OF that year we
had outstanding demand liabilities in the
sum of $72S, S6S, Al. On the first OF jan
uary. 1897, these liabilities had been re-
duced to $443, SS9, 1855. or our interest
bearing obligations, the figures are even
more striking. On July !, 1866, the prin-
cipal Of the Understanding debt OF the
government was $3.50, 1871, POS. On the
first day OF July, 1898. this sum had been
reduced to $685., 037 100, or an aggregate re-
duction Of s., 747 ,294, los. The interest-bear-
ing debt of the United States on the LIST
day of December, 1897, was $S47 1866, $50.
The government money now outstanding
Dec. u consists of s346. 6S1 ole of United
States notes, $107, 793, $50 Of treasury notes
issued by authority OF the law OF 1890,
1854, 1864, 503 of silver certificates and SOL
z3o,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-
pliehed 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 1898
to 1897 must admonish congress OF the inn
mr. af lPQiglatinR
make the return of the conditions then
prevailing impossible.
Every Dollar Is Good.
There are many plans proposed as
remedy for the evil. Before we can find
the true remedy we must appreciate the
real evil. 1t ie not that our currency OF
every kind is not good, for every dollar OF
II is good-good because the governments
pledge is out to keep 1t 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
fulhllment.
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 gold. We surely cannot
be longer needless of the burden this inn
poses upon the people even under fairly
prosperous conditions, while the past four
years have demonstrated that 1t Is not
only an expensive charge upon the govern
ment. but 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, or
increase the gold reserve for their re-
demption. We have 100000, 900 of cur
vency 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
arc 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-
quired 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.
II can get IL in no other way when II
most needs 1t. The government without
any fixed gold revenue b5 pledged to main
tain gold redemption, which 1t 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 its United States
notes, to pay them out again as current
funds demands constant replenishment OF
the gold reserve. This is especially so Ia
nues are insufficient to meet the expenses
of the government
At such times the government has nc
other way to supply it's deficit and main
tain redemption but through the increase
Of it's bonds, as during the administration
or my predecessor, when 1862, 315. 400 of ~!
per cent. bonds were issued and sold ant
the proceeds used to pay the expenses o.
the government in excess Of the revenues
and sustain the gold reserve. While IL II
~ - - L. .z,I,
OF these bonds were used to supply dei
eient revenues. a considerable portion wa!
required to maintain the gold reserve
s The Need of Reform.
With our revenues equal to our expenses
there would be no deficit requiring thu
issuance of bonds But IL the gold reserve
falls below 500 900, 600, how will II be re
pienishei except by selling more bonds
Is there any other ways practicable undo
existing laws? The serious question thel
Is shall we continue the policy that ha
been pursued in the past; that is when tn
gold reserve reaches the point of danger
Issue more bonds and supply the needle
gold or sholl we provide other means I
prevent these recurring drains upon tn
gold reserve? II no further Legislation
had and the policy of selling bonds Is I
be continued then congress should CIV
the secretary Of the treasury authority {
sch bonds at long or short periods, bear
ing less rate OF interest than Is mo-
authorized by law. 81,
earnestly recommend, as soon as tn
receipts OF the government are quite suf1
cient to pay all the expenses Of the gov
eminent, that when any OF the Unite
States notes are presented for redemptio
In gold and are redeemed In gold sue
sDtex shall be kept and set apart, and onl
lid out IN exchange for gold. This Is q
6bvious duty II the holder Of the Unite
Dkates note prefers the gold and gets
fron the government he should not recei,
tack from the government United State
notc without paying gold In exchange Il
~ The reason for this is made all II
mere apparent when the government Issue
- interest bearing debt TO provide go
om the redemption Of United States notes
= non-interest- bearing debt. Surely
snould not pay them out again except {
demand for gold. IL they are put out
any other way they ray return again to
jfollowed by another bond issue to redee
tthem--another interest bearing debt to r
Hoom = non-interest- bearing debt.