The Superior times. [volume] (Superior, Wis.) 1870-1912, 1897-12-11
THE CURRENCY QUESTION.
President Reviews Existing COndi-
tions-Recomm III N atiOns.

Inc work OF putting our nnanCeS upon
a sound basis, difficult as it may seem, viii
appear easier when We recall the financial
operations of the government since 1866.
On the Goth day Of June of that year We
had outstanding demand liabilities in the
sum OF SIPS SOS 447.i1. On the first Of Jan
uary. 1897, these liabilities had been re-
duceI to $443, $50, t95.SS. or our interest
bearing obligations, the figures are even
more striking. On July !, 1866. the prin
Cipal Of the interest-bearing debt Of the
government was s.. 332 .331 POS. On the
first day of July, 1893, this sum had been
reduced to $3.50. .O37, 100. or an aggregate re
duCtion OF $1,74T, ,294. l0S. The interest-bear-
ing debt Of the United States on tho 1st
day of December, 1897. was sSi7 .365. .620.
/ The government money now outstanding
dee. y consists Of S34G, ,6Sl ,ol6 Of United
States notes, Sl07, 1913 $50 Of treasury notes
issued by authority Of the law of 1890,
1891. 1853, ,5o3 o. silver certificates and SOL
23o,T6l 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 heSi-
tate to enter upon currency revision
which Will make our demand obligations
less onerous to the government and relieve
our financial laws from ambiguity and
doubt.
plished from the close of the war to 1898
makes unreasonable and groundless any
listruSt either of cur financial ability or
soundness. while the situation from 1898
to 1897 must admonish congress of the i'm
mediate necessity Of so legisating as to
make the return OF the conditions then
prevailing impossible.
Every Dollar Is Good.
There are many plans proposed as a
remedy for tho evil. Before We can find
the true remedy we must appreciate the
every kind is not good. for every dollar Of
it IS go0d-good because the governments
pledge IS ont to keep il so, and that pledge
vii. not be broken. However, the guar
anty OF our purpose to keep the pledge
viii be best shown by advancing toward its
fulhiment.
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
he longer needless OF the burden this i'm
poses 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 govern
ment, but a dangerous menace 10 the ma
tiunal credit
1t is manifest that We must devise some
plan To protect the government against
bond issues for repeated rCdemptfous We
speculation. made easy by the multiplied
rctemptions OF our demand obligations or
increase the gold reserve for their re-
dempuOn. We have $500 GEO 900 of cur
rCucy which the government by solemn en-
aCtmeEt has undertaken to keep at par
with gold Nobody is obliged to redeem
in gold but the government. The banks
are not required 10 redeem in gold The
government is obliged 10 keep equal with
gold all its outstanding currency and coin
obligations. while its receipts are not re-
quirel 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.
L can get 1t in no other way when it
most needs it. The government without
any fixed gold revenue is pledged to main
tain gold redemption. which it has steadily
and faithfully done and which under the
authority now given 1t will continue 10 do.
The Law which requires the government,
after having redeemed its United States
notes. to pay them out again current
funds demands a constant repleniShment OF
the gold reserve. This is especially so in
times OF business panic and when the reve-
nueS are insufficient to meet the expenses
Of the government.
~ such times the government has no
other way to supply its deficit and main
tain red mptiun but through the increase
Of it's bonds as during the administration
Of my predecessor. when S262 .215 30 of AZ
par cent. bonds we're issued and sold and
tlr proceeds used 70 pay the expenses Of
he government in excess OF the revenues
ant sustain the gold reserve. While it is
true that the greater part of the proceeds
af these bonds were used 10 supply def
CIEr, revenues. a considerable portion was
required to maintain the gold reserve.
The Need of Reform.
there would be no deficit requiring the
issuance. Of bonds But if the gold reserve
fiI!S below $l00 O00 COO how will il be re-
.,rnf,heI except by selling more bonds?
i there any other way practicable under
-y-SltiuE laws The serious question then
is shall we continue the policy that has
been pursued in the past; that is when the
Eula reserve reaches the point Of danger.
ssIe more bonds and supply the needed
1j& or Sholl We provide other means to
prevent these recurring drains upon the
gold re>ervea If 10 further legislation is
had and the policy Of selling bonds Is 20
oe continued then congress should give
he secretary Of the treasury authority 10
sell bonds at long or short periods. bear
iUE a less rate Of interest than Is now
authorized by law.
earnestly recommend. as soon as the
receipts # the government are quite suffi-
Gent 70 pay - -0e expenses of the gov
Fih.athI, mat Nhen any OF the | nited
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 exchange for gold. This is an
obvious duty. II the holder Of the United
states note prefers the gold and gets II.
from the government he should not receive
back from the government United States
note without paying gold IN exchange for
K. The reason for this is made all the
more apparent when the government issues
IN interest bearing debt 70 provide gold
Tor the redemption OF United States notes
! misunderstanding debt. Surely II
should not pay them out again except on
-emand for gold. II they are put out in
any ether way they may return again 20 be
followed by another bond issue TO redeem
tEeI-auother interest bearing debt tc re-
49,