The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1897-12-08
THE MESSAGE.


atiVes-lt gives me pleasure to extend
greeting to the nftY-0fth Congress- as
sembled in regular session at the seat of
government, with many of whose sena-
t'rs and representatives | have been as
ISOLATED IN the legislative service. Their
meeting occurs under felicitous condi-
tons, jus flying sincere congratulation and
calling forth our grateful acknowledge
ment TO a benetiCent providence, which
has so sisnally blessed ana prospered us
as a nation.
Peace and good will. with all the ma
tons of the earth, continue unbroken A
matter of genuine satisfaction is the
growing feeling of fraternal regard and
unilication of all sections of our country
the Incompetence of which has too long
delayed realization of the highest bless
ings of the union. The spirit of patriot
ism Is universal and is ever increasing in
fervor. The public questions which now
most engroSS us are lifted far above
either partsanship, prejudice former
sectional differences. They affect every
part of our common country alike, and
permit of no division OH ancient lines
Questions of foreign policy, of revenue
the soundness of the currency, the invio-
liability of national obligations, the i'm
proVemont Of the public service, appeal
to the Individual conscience of every ear
nest citizen to whatever party he belongs
or in whatever section of the country he
may reside.
The extra session of this Congress
which closed during July last enacted
important legislation, and while its full
effect has not yet been realized, what
ii has already accomplished assures us
of its timeiucss and wisdom. To test
it's permanent value further time will
be required. and the people, satisfied
with its operation and results thus far,
are In no mind to withhold from it a
fair trial Tariff legislation having been
settled by the extra session of Congress
the question next pressing for consid-
Grafton is that of the currency.
SOUND BASIS FOR CURRENCY.
The work Of putting our finances upon
sound basis, difficult it may seem.
will appear easier when we recall the
financial operations of the government
since 1850. On the :0,h day of Juna of
that year we had outstanding demand
liabilities in the sum of 1928, SOS 447.41. on
the first of January. 1879 these liabilities
had been reduced to SAB $3.50, 1885 or our
Understanding obligations. the figures
are even more striking. On July l, 1876,
the principal Of the interest bearing debt
OF the government was 81 $3.50, 331 2OS. On
the first day Of July, 1893, this sum had
been reduced TO $3.50. 037 100, or an aggre-
gate reduction of sl.747. 294 1OS. The inter
est-bearing debt of the United States on
the first day of December 1897. was $S47,-
36j62O. The government money now out
standing dec u consists of $346, Ssh ,016
of United States notes. Si07.7932O of treas
of 1890 1881 9i} 50i of silver certificates.
and $G31, 2SO.761 of standard silver dollars
With the great resources Of the govern
mcnt and with thu honorable example
of the past before us, we ought no. to
hesitate to enter upon currency re-
vision which will make cur demand obli-
cations less onerous ia the government
and relieve our financial laws from am
bguity and doubt.
The brief review of what was accom-
rN1iC n or Of hn tn
1898 makes unreasonable and groundless
any distrust either of our financial
ability or soundNess while the situation
from 1893 to 1897 must admonish Con-
gress of the immediate necessity OF so
legisiat'nG as to make the return of the
conditions 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. II is not that our currency Of
every kind is not good. for every dollar
of II is e0Od--good because the govern
ment' s pledge is out to keep ii So and
that pledge will not be broken. However,
the guaranty of our purpose to keep the
pledge will he best shown by advanc-
ing towards its fulfillment.
The evll of the present system is found
In 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 can
imposes 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 government but dangerous menace
to the national credit. 1t Is manifest that
we must devise some plan to protect the
government against bond issues for re-
peated redemptions. We must either cur
tail the opportunity for speculation made
easy by the multiplied redemption of our
and sA1l fFrnf lone nr Inc tl,A IL
reserve for their redemption. We have
5000 900, 900 of currency, which the govern
ment, by solemn enactment, has under
taken 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 obiga-
lions. while its 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
Tt can get II no other way when 1t must
needs II. The government without any
fixed gold revenue, is pledged to maintain
gold redemption which 1t has steadily and
faithfully done, and which, under the au-
thorty now given 1t, it will continue to
do.
The law which requires the govern
ment after having redeemed its United
current funds demau DIS a constant repl n
ishment of the gold reserve. This Is es-
peciaily so in times of business panic,
and when the revenues are insufficient
to meet the expenses of the government
At such times the government has no
other way to supply its deficit and
maintain redemption but through the
increase OF It's bonded debt as during
the administration of my predecessor
when 1862 315, 400 of 1-2 per cent bonds
were issued and sold, and the proceeds
used to pay the expenses of the govern
ment in excess Of the revenues and sus-
tain the gold reserve. While It is true
that the greater part of the proceeds OF
these bonds were used to supply def
cient revenues, considerable portion
was required to maintain the gold re-
serve.
with our revenues equal to our ex-
penses, there would be no deficit requir-
ing tho issuance of bonds, but If the
gold reserve falls below $100 600 900 how
will 1T be replenlshed except by selling
more bonds? Is there any other way
practicable under existing law? The
serious question then Is, shall we con
tinue the policy that has been pursued
in the past, that is, when the gold re,
serve reaches the point of danger issue
more bonds and supply the needed gold
or shall we provide other means to pre-.
vert thesc recurring drains unon Tho