The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-07-17
Currency Reform.

The troublesome and possibly pernicious
struggle for currency reform Ia bolstcred up
on such wisdom as we hereby quote from a
particularly strenuous advocate OF 1t, the
Chicago Tribune:
"Is TIM SUE aware Of the fact that the interest
charges have Increased over eight millions ainoe Mr..
CLEVELAND was innugurated in 1898, and that those
charges were increased by reason OF the sale OF bonds
with which TO redeem sreenbacks ?"
The figures for increased interest charges
are alone accurate. The Cleveland bonds
wero indeed sold primarily to redeem
greenbacks, but really to pay the ex-
penses of the Government. II that had
not been 30, the entire money received
from them, nearly three hundred mil
lions Of dollars. would have been In the
Treasury when Mr.. CLEVELAND left Office,
ready to %eNtinguish the debt. Some day
the Chicago Tribune, like others whose
resolution is destined to succumb at last
to truth, will abandon the subterfuge Of
charging our currency system with respon-
sibility for the Cleveland bonds.
Tho act of 1873 makes it the duty of the Secretary
OF the Treasury to pay out greenbacks which may
have been redeemed"
The Secretary of the Treasury is under no
such duty. II the revenues were sufficient,
he would have no occasion to reissue such
greenbacks, and he could not be COM
PEELED to do 1t.
bonds will have to be sold again II there Is such q
demand for gold as there was in lss4-s5."
Perhaps they will and perhaps they won't.
1t will depend upon whether we have a
deficit, as we had in 1894. or revenue sufi-
Giant IN INV oynanooo IN Tho loffor coec
no bonds will be sold.
"If there should be free-silver victories this year
and next, might not that demand be renewed ?'
With q free.silver victory, what would
become of the bank currency which the
reformers would like to substitute for
g~reenbacks7 When the national currency
becomes virtually silver, it makes little diff
ference whether it bears the stamp of the
Government or the stamp Of the banks.
1.-THE amount OF gold paid out to redeem greenbacks
and Sherman notes between March. 1898, and Novem-
Der, 1896. was SAYS. 1ss. 900"
This statement of our contemporaries is
the same as that issued by GRovER CLEvE-
LAND when he was President, and it de.
ceives. If the Chicago Tribune will take
the amount of gold paid into the Treasury
in exchange for currency between March
of 1893 and November of 1906, it will find
that the figures given above do not repre-
sent the strain put upon the g~reenbacks
by the obligation to redeem them in gold.
These are the Cleveland figures. They are
substantially dishonest.
"when will be the last bond sale II the endless
chain Is not broken ?"
The endless chain was broken the mo-
ment the revenues became equal to tho
expenses. Instantly the drain upon the
gold reserve stopped, and soon after tho
reserve began to increase.
The Chicago Tribune asks: HAS THE
Sun a plan to recommendr'
We have a plan indeed. Make your rev.
enues equal to your expenses, and the end
less chain will not be heard Of. II our cur
rency reform contemporaries are still too
stepped In delusion to understand that sim
pie method, in spite of the demonstration
of it's soundness and sufficiency within the
last six months, THE SUN can suggest an
other plan: Provide by law that the green.
backs redeemed with gold shall be held in a
fund by themselves and rcissued only in ex.
change for gold. Then there will be no end.
less chain, deficit or no deficit.