The Providence news. (Providence [R.I.]) 1891-1906, 1897-12-06

easy by the multiplied redemption OF our
demand obliTations or Increase the gold
reserve for their redemption. We have
5000 oo0 0o0 of currency. which the govern
ment. by -olemn enactment. has under
taken 20 keep at par with gold Nobody
r. obliged 10 redeem I'm gold but the
government The banks are not required
10 redeem I'm gold. The government is
obliges TO keep equal with gold all its
outstanding currency and coin obliga-
tlons. while its receipts are not required
TO be paid I'm gold. They are paid in
every kind of money but gold, and the
only means by which the government can
with certainty get sold IL by borrowing.
IL can get IL no other way when IL must
needs IT, The government, without any
fixed gold revenue. is pledged 10 maintain
gold redemption which II has steadily and
faithfully done. and which. under the au-
thority now given IL, IL will continue 10
do
The law which requires the govern
ment. after having redeemed it's United
States notes. 20 pay them out again as
current funds. demards constant repl n
ishment OF the gold reserve This is es-
pecally so in times OF business panic
and when the revenues are insufficient
20 meet the expenses OF the government
At such tiu,es 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 aduinistra tion OF my predecessor.
when $3.50 3l5. 400 Of 1-2 per cent bonds
were issued and sold. and the proceeds
used 20 pay the expenses OF the govern
ment i'm excess OF the revenues and sus-
tain the gold reserve. While IL is true
that the greater part Of the proceeds of
these bonds were used 10 supply def
cient revenues. a considerable portion
was required 10 maintain the gold re-
serve.
With our revenues equal TO our ex-
penses. there would be no deficit requir-
ing the Issuance Of bonds but IL the
gold reserve tall. below Sl00. 600 900 how
will u be replenshed 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. issse
more bonds and supply the needed gold:
or shall we provide other means 20 pre-
vent these recurring drains upon the
gold reserve? II no further legislation
is had and the policy OF selling bonds is
20 be continued then congress should
give the secretary of the treasury au-
thorLty to Sc" bonds at long or short
periods, bear lg a less rate OF interest
than Is now authorized by law.
/ earnestly commend. as soon as the
receipts OF the government are quite
sufficient 10 pay all the expenses of the
government. that when any OF the
United states notes are presented for
redemption an sold and are redeemed In
gold, such notes shall be kept and
set apaTt and only paid out in
exchange for gold. rms * an oovs5us
duty. II the holder OF the United States
note prefers the gold and gets IL from tho
government, he should not receive back
from the government a United States
note without paying gold In exchange for
q =
Sore apparent when the government is
sues an interest-bearing debt to provide
gold for the redemption OF United states
notes-a non-interest bearing debt. sure
~ IL should not pay them out again ex-
cept on demand and for gold. If they arc
put out In any other way they may re-
turn. again. TO be followed by another is
sue 10 redeem them-another interest
bearing debt 10 redeem a non-interest-
bearing debt.
In my view It Is of the utmost import
nnce thar the government should be re-
lieved from the burden OF providing all
the gold required for exchanges and ex-
port. This responsibility IL alone borno
by the government, without any of the
usual and necessary banking powers to
help Itself. The banks do not feel the
strain OF gold redemption. The whole
strain rests upon the government, and
the size OF the gold reserve In the treas
ury has come 10 be. with or without rea-
son, the signal Of danger or OF security.
This ought 90 be stopped.
IL we are TO have an era OF prosperity
In the country. with sufficient receipts
for the expenses OF the government. we
may feel no immediate embarrassment
from our present currency, but the dan
ger still exists and will ever be present.
Incnacing us 50 long as the existinn sys-
TEN continues Besides, a. is In times of
adequate revenues and business tranquil
ity that the government should lsspare
Tor the worst We cannot avoid. with
out serious consequences. wise consider
Grafton and prompt solution Of this ques-
uon
The cccretary Of The treasury has out
lined a plan in great detail for the pur-
pose Of removing tho threatened recur-
renee Of q depleted gold reserve and save
ns from future embarrassment on that