Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1897-12-10
WASHINGTON. Dec. 7.-Followng is
the Presidents message to Congress:

tiveS: 1t gives me pleasure TO extend greet
ing to the Fifty-flfth Congress Assem- bed in
regular session at the seat of government.
with many of whose Senators and Represen-
tativcs l have been associated in the legis-
lativc service. Their meeting occurs under
teicitOus conditions. justifying sincere
congratulate ton and calling for our grateful
acknowledged ent to a benefcent Provi-
dence which has so slgnally blessed and
prospered us as a nation.
Peace and good will with all the nations
OF the earth remain unbroken.
matter of genuine satisfaction is the
growing feeling of fraternal regard and uni
dcation of all sections of our country, the
incompleteness of which has too long de-
layed realization of the highest blessings
of the Union. The spirit of patriotism is
universal and is ever increasing in fervor.
The public questions which now most en-
gross us are lifted far above either PARTISAN
ship pre- JUDGE or former sectional defferen-
ces They affect every part of our common
country alike and permit of no division on
ancient lines. Questions of foreign policy.
OF revenue, the soundness of the currency,
the inviolability of national obligations,
the improvement of the public service, APP
peal to the individual conscience of every
earnest citizen. to whatever party he be-
longs or in whatever section of tn, country
he may reside.
closed during July last, enacted important
legislation, and, while it's full effect has not
yet been realized, what it has already &C
complshed assures us of its timeliness and
wisdom. To test its permanent value fur
Their time will be required and the people,
satisfied with its operations and results
thus far. are in no mind to withhold from
1t fair trial.
Currency Reform Urged.
the extra session OF Congress- the question
next pressing for considc ration Is that of
the currency.
The evil of the present system is found in
the grea cost to the government of main
tanning the parity of our diff.ren forms of
money, that is, keeping all of them at par
with gold. We surely cannot be longer
needless of the burden this imposes upon
the people, even under fairly prosperous
conditions, while the past four years have
demons trated that it is not only an expen-
sive 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 repeated redemption We
must either curtail the opportunity for
speculation, made easy by the multiplied
redemption of our demand obligations or
Increase the gold reserve for their redemp.
tion. We have $780, 600. 900 of currency
which the government by solemn enact
ment has undertaken to keep at par with
gold Nobody is obliged to redeem in gold
but the government The banks are NOT re-
quired to redeem in gold. The govern
ment Is obliged to keep equal with gold
all its outstanding currency and coin
obligations, 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 gov
eminent can with certainty get gold is by
borrowing. 1t can get it in no other way
when 1t m AADeeds it.
Bond Issues.
The government without any fixed gold
revenue is pledged TO maintain gold re-
demption, which it has steadily and faith
fully done and which, under the authority
now given 1t will continue to do. The law
which requires the government after hav-
ing redeemed Its notes to pay them out
again as current funds de mands a constant
replenishment of the gold reserve. This
is especially SO in times of business panic
and when the revenues are insufficient
to meet the expenses of the govern
ment. At such times the government has
no other way to supply its deficit and main
tain redemption but through the increase
of its bonded debt as under the ADM nistra-
ton of my predecessor, when 1862 315 400 of
~ 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 deficient
revenues, a considerable portion was re-
luired to maintain the gold reserve
With our revenues equal to our expenses,
there would be no deficit requiring the is
suance of bonds. But If the gold reserve
falls below 100 million dollars. how will 1t
,tel,a ayNf hN,,
Is there any other way practicable under
existing law? 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 shall we provide other me ans to preve mt
these recurring drains upon the gold re-
'erve?
If no further legislation Is had, and the
policy of selling bonds is to be continued.
then Congress should give the Secretary of
the Treasury authority to sell bonds at long
or short periods, bearing less rate of in
terest than is now authorized by law
earnestly recommend as soon as the re-
ceipts of the government are quite sufficient
to pay all the expenses of the government
that when any of the United States notes
are presented for redemption in gold and
are redeemed in gold, such notes shall be
kept and set apart and only paid out in ex-
change for gold.
This is an obvious duty. If the holder of
the United States note pre- fers the gold and |
gets 1t from the government he should not |
receive back from the government United
States note without paving gold in exchange
for it The reason for this Is made all the more |
apparent when the government issues an
interest bearing debt to provide gold for |
the redemption OF, United States notes-a |
non-interest bearing debt Surely it should |
not pay them out again except on demand |
and for gold. If they are put out in any |
other way they may return again to be fol-
lowed by another bond issue to redeem |
them another interest bearing debt to re-
deem non-interest bearing debt.
In my view it is of the utmost Importance |
that. the government should be relieved |
from the business of providing all the gold |
for exchanges and export This RESPONSE |
bilty Is alone borne by the government,
without any of the usual and necessary |
banking powers to help itself The banks
do not feel the strain of the gold redemp- |
ton. The whole strain rests upon the gov
srnmcnt and the size of the go d reserve |
In the treasury has come to be- with or
without reason the signal of danger or of
security This ought to be stopped.
The secretary of the treasury has out
lined plan in great detail for the purpose
Of removing the threatened recurrence of |
depleted gold reserve and save us from fu-