The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-08

of $346,000 600 of legal-tender notes, it must
also hold itself in readiness to redeem in like
manner mann $ll4,eO OOo0O of the treasury notes of
1890, and to maintain through it's treasury
the free interchangeable bility with gold. for
any part or all of $40, eco eco in silver now
current with our people The aggregate total
of these liabilities amounts to $500 GOO 600. 1t
Is not intended to convey the idea that the
government will ever be called upon to pay
at any one time or over any one period of
time, however protracted the total liability
thus shown. 1t is, however, indispensable
that the treasury be endowed with power
ana resources ample to meet all claimants
VINO may come. and with margin sufficient
TO give full assurance to all who do not come
that its ability for continuance is unim-
paired. The statement that the traditional
SlOO,JO0,000 of gold reserve is insufficient for
these purposes need not be supported by
argument II IS manifest. Inc recognized
lnadequacy OF that amount has, n more
than one occasion, brought fear and Ge-
rangement to all interests, industrial, COM
mercial and financial
The losses suffered by the body politic
through these arrangements having their
origin in the state of the public treasury
cannot be named, although it is not beyond
the limit of reasonable estimate to say that
the total of such losses exceeds the total
of the demand liabilities of the treasury as
above set forth If it be urged in answer to
these considerations that the state of the
treasury is fairly satisfactory now% that gold
Is f1oWing freely toward the treasury and
not away from 1t, and that there Is good
state of confidence in our present financial
condition, the answer must be received as a
perfectly correct one. 1t might be further
urged with probable truth that these favor
able conditions will endure for-an indefinite
period. With public revenues sufficient for
pubic expenditures. and a reasonable sur
plus accumulating; with trade relations nor
mai, with ample crops carrying fair rewards
to agriculture, with no war or we'll defined
grnn;in, rrdnors OF & war we might go on with n.
the continuance of these good conditions
cannot be assured to us. Commerce and in
dustry, sensitive to all unfavorable events,
and watchful with anxiety against dangers
as yet unseen, need for their full recovery
from past reverses and depression a re-
finances are to be firmly placed on stronger
exist
AS long as the government shall operate
to any important extent in supplying the
currency of the country by the direct is
sues OF its notes and by maintaining.
through its guarantees of parity, so large
a volume of silver money, so long will all
our trade and industries remain in state
OF dependency upon the financial wisdom,
foresight, and courage of Congress. This
forced dependency the one part begets
corresponding responsibility on the other.
Considered from the standpoint of nation
al derenSe the argument is reinforced. We
appropriate millions to create a navy,
which, through the genius of invention
less. We appropriate other millions to pro-
vide coast defenses against attacks which
may never be made. Such action, timely
and wise it may be, is inconsistent with
treasury condition so extended in time
of peace as to bring panic and alarm to
our people before the first sound of the
enemys guns in modern days a wel-sup-
piled war chest with an impregnable credit
is as important as are war ships, shore
batteries, or regiments of men.
The advantages of a strong position in
the national treasury with it's accompany
ing benefits to all commercial interests and
great reinforcement of the public credit
can. believe be secured without any un-
settling legislation, in a manner easy to
be comprehended by all and with small cost
to the people
The recommendations I make must be
construed as tentative steps in a direction
which, II consistently pursued, will ulti-
mately lead to conditions theoretically de-
sirable rather than as being in themselves
final measures to that end The conditions
of the treasury in its relation to demand OBJ
legations requires that one of two steps be
taken. The one may be a large reinforce
ment of the permanent gold reserve the
other may be by an important reduction
in the Objectionable form of liabilities The
latter is, in my opinion, the more desirable