The times., 1897-12-07
CURRENCY REFORM.
Reviews History and Recommends
Legislation.


Legislation.
The work Of putting our finances upon
q sound basis, difficult as IL may seem,
viii apps ar easier when we recall the
financial operations of the Government
sance 1866. on the thirtieth day OF June
or that year we had out tstaHding demand
liabilities in the sum Of S72s,S6S, Al. Il.
on the first Of January, 1879, these lil-
biiiies had been reduced to S143,sS9.
495.8S. or our interest bearing obliga-
fions The figures are even more striking.
On July /, 1866, the principal Of the in
terest-hearlng debt of the Government
was S2,332, ,33I .2OS. on the first day
of july, lS23 this sum had been reduced
20 S5s5 037. 100, or an aggregate retlIc-
ton OF S1,747.294,IOS. The interest
bearing debt OF the United States On the
first day Of December, 1897, was Ss4T.-
S6b62O. The Government money nov
outstanding Deccnher J. consists of SO f5.-
6sI ole OF United States notes, S1O7,-
7sS2sO Of Tres suFy notes issued by .tu-
thority RI the law Of 1890, S3S4 ,963, ,504
OF silver certificates, and SCI, ,2S0,761 OF
STANDARD silver dollars.
With the great resources OF the Govern
ment and with the hOnora hle example Of
the past before us, we ought net To hesitate
20 enter upon a currency revision which
VIII make oui demand obligations less
onerous T. the Government and reIieTe
our financial laws from ambiguity ard
doubt
The brief review II what was accom-
pIished from the close of the war 70 S93
makes unrea suna hIe and grodndless aly
disfrust either of cur financial bility
OF soundness: while the situation from
1893 To 1897 must admmish Congress OF
the Immediate necessity of so legislating
as 10 make the return OF the condir ons
then prevailing impossible.
Evils OF Present system.
The-e are many plans proposed Is
remedy for the evil. Refore we can iind
the true remedy we must appreciate tile
real evil. Ii is not that our currency Of
every kind is not good, for every dollar
Of it is good: good because me Govern
ment 5 pledge is udt to keep il 50, and bat
pledge rill not ne broken. However, the
guaranty of our purpose to keep the
pledge VIII be hest shown by advancing
toward its fulflllnient.
The evil of the present system IS found
in thepreat cost to the Governmental main
tanning the par Of our different forms uf
money, that is. keeping al of them At par
withg0ld. Wesurel ly cannot be longer need
less of the burden this imposes upon the
people, even under fairly prosperous condi-
tons, while the past four years have Gem
onstrated that il is not only an expensive
charge upon tie Government, but a dang ar-
ous menace to the National credit.
II is manifest that we must devise some
planto protectthe Government against bond
issues for repeated redemptions. We must
either ercurtailtheopportun for specula zion,
mad e easy nv the multiplied redemptions of
our demand obligations, OF increase the gold
reserve for their redemption. We have
100000, goo OF currency which the Gov
ernment by solemn enactment has under
taken to keep At par with gold. Nobody is
obligedto redyeIn in gold but { ne Government
The banks are not required to redeem in
gold. The Government is oiiiged 10 Keep
equal with gold ali its outst auGing 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 Government
can with hcertainty get gold is by borrowing.
Ii can get il in no other way when il
nlDHt IttGH IL lie Government WITHOUT
any fixed gold revenue is pledged to main
tain gold redemption, which IL has steadily
and Faithfully done and which under the
Authority now given it viii continue to do.
The law which requires the Government.
after Ia wing redeemed its United States
notes, 10 pay them out again as current
funds. demands constant replcnishment
OF the gold reserve. This is especially so
in tin.esof business panic nd when he rev
ennes are insufficient to meet the *.
penses Of the Government. At such times
the Government has no otner way tosuppIy
Its deficit and riaintain redemption but
Though the increase OF its bonded debt n :
hnrine the Administration of nv pr ID acesse,r
when S262, ,3l5, 400 Of 4 I . per cent bonds
were Issued aud sold and the proceeds used
to pay the expenses or the Government in
excess OF the revenues and sustain the gold
reserve. While il is true that the greater
part OF the proceeds OF these bonds were