The Owosso times. (Owosso, Mich.) 1897-1926, 1897-12-10
CURRENCY LEGISLATION.
Congress should Not Hesitate to En-
ter Upon Revision.

ter Upon Revision.
Tariff legislation having been settled by
the extra session OF congress, the question
next pressing for consideration Is that OF
finances fns upon sound basis, difiicult as it
may seem, will appear easier Wnen we re-
call the financial operations OF the govern
of that year we had outstanding demand
liabilities in the sum Of s72S, S6S,44a.4I: On
the list of January. 1879 these liabliitles hao
terest-bearing obligations, the figures are
even more striking. On July i, 1866, the
principal of the interest.bearing oebt or
the government was 1882, POS; On tho
first day of July, 1899, this sum had been
reduced to $751;, 1881, 100 or an aggregate re-
ductlon of $1,747, 294,1OS; The interest-bear.
ing debt OF the United States on the first
day of December, 1897, was $S47, S65,62O The
government money now outstanding (De-
cember y consists of $3iG,6Sl ,Ol6 or United
States notes, .$107, 1920 Of treasury notes
issued by authority of the law Of 1890, 1851
963,503 of silver certificates, and $61,2sO, 76l
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 hest
tate to enter upon currency revision
which will make our demand obligations
less onerous to the government, and relieve
our financial laws from ambiguity ana
doubt.
NO uround Tor DIstrusr.
The brief review of what was accom-
plished from the close of the war to 1893
makes unreasonable and groundless any
distrust either of our financial ability or
to 1897 must admonish congress of the i'm
mediate necessity of so legisatng as to
make the return of the conditions then
prevaii nnend Impossible There are many
Before we can find the true remedy we
must appreciate the real evil. 1t is not
that our currency Of every kind Is not good
the governments pledge is out to keep 1t
So and that pledge will not be broken.
However, the guaranty Of our purpose to
advancing toward its fulfillment.
EVIL of the Present SYSTEM.
The evil of the present system is found In
the great cost to the government of main
tanning the parity of our different 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
demonstrated that 1t is not only an ex-
pensive charge upon the government but
q dangerous menace to the national credit.
Must Provide Against EOnd Issues.
1t is manifest that we must devise some
plan, to protect the government against
bond issues for repeated redemptions. We
must either curtail the. opportunity for
speculation. made easy by the multiplied ,,nI,
Increase the gold reserve for their redemp-
lion. We have s9O0,0O0.0O0 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
required to redeem in gold. The govern
ment is obliged to keep equal with gold all
It's outstanding currency and coin obliga-
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 GER
tainty get gold Is by borrowing. 1t can get
Il In no other way when 1t most needs It.
I.A s.rtA a-A1 rvGIA
revenue Is pledged to maintain gold re-
demption. which IT has steadily and faith
fully done, and which under the authori-
~ now given IL will continue to do.
The law which requires the government
after having redeemed It's United States
Sies 70 dem pay VEN 2 again as ,snT5sbt
or the gold reserve. This Is especially SO
IN times OF business panic, and when the
revenues are insufficient to met the ex-
penses or the government. At such times
tue government has no other way to sup
by us dencit and maintain redemption but
sIayugn tne increase of its bonded debt, as
curing the ADMINISTRATION of my predeces-
sor, when $262, 400 of Az per cent. bonds
were Issued and sold. and fhe proceeds used
~ pay ne expenses of the government in
excess or the revenues and sustain the
goid reserve. While Il is true that the
greater part or the proceeds of these bonds
we're used TO supply deficient revenues. a
consluerapie portion was required to main
with our :erenues equal to our expenses
there would be no deficit requiring the is
suance Of bonds. But II the gold reserve
plenished except by selling more bonds7