Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1897-12-14
THE CURRENCY QUESTION.
Necessity of Putting Our Finances
Upon a Sound Basis.

Tariff legislation having been settled by
the extra session of congress-, the question
next pressing for consideration Is that OF
the currency. The work of putting our
finances upon a sound basis, difficult as it
may seem, will appear when we recall
the financial operation of the government
since 1866. On the Goth day of June OF
that year, we had outstanding demand
liabilities in the sun of S72S, S6S, 447 Al. On
the LIST day of July, 1879, these liabilities
had been reduced to $443, $50, 1856 So. OF our
Understanding obligations, the figures
are even more striking. On July /, 1866,
the principal of the interest-bearing debt
or the government was 1889, 33l, 20S. On
the LIST day of July, 1893, this sum had
been reduced to s5S5 ,O37, 100, or an aggre-
gate reduction of 81, TAI, 294, 1OS. The inter-
est-bearing debt Of the United States on
the LIST day of December, 1897, was $751;
365, 500. The government money now out
standing December u consists of $780,
&l,0l6 Of United States notes; S107, 1888, $50
of treasury notes issued by authority of
the act of 1890; 1884. s63, 5O4 of silve certif-
Gates and S6l, $50, 761 of standard silver
dollars.
With the great resources of the govern
ment and with the time-honored example
of the past before us, we should not hest
tate to enter upon a currency revision
'asNe wa ahh1hN oeA ma
less onerous to the government and re-
lieve our financial law from ambiguity
and doubt.
The brief review of what was accom-
plished from the close of the wal until
1893 makes unreasonable and groundless.
any distrust either of our financial abil-
iy or ~soundness; while the situation from
1893 to 1897 must admonish congress of the
immediate necessity for so legislating as
IN nnaka tho ratttrp of the condition, tb,,
prevailing impossible.
There are many plans proposed as a
remedy for the evil. 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, for every dollar
OF 1t Is good; good because the govern
ment's pledge is out to keep 1t so, and
that pledge will not be broken. How
ever, the guaranty of our purpose to keep
the pledge will be best shown by advanc-
ing toward is fulhllment.
EVIL of the Present System.
The evil of the present system is found
In the great cost to 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
be longer needless OF the burden this i'm
poses upon the people, given under fairly
prosperous Nohul1loIS, WHilt the past lOuT
years have demonstrated that 1t is not
only an expensive charge upon the gov
eminent, but a dangerous menace to the
national credit.
1t Is manifest that we must devise some
plan to protect the government against
bond Issues for repeated redemptions. Wn
must either curtail the opportunity
speculation. made easy by the multip
redemptions of our demand obligations,
demption. We a $500, 00O.0 0 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 gov
m 10 obliged to keep equal with
gold all its outstanding currency and coin
obligations, while Its receipts are not re-
ouired to be paid in gold. They are paid
1n every kind of money but gold, and the
only means by which the government can.
with certainty. get gold is by borrowing.
1t can get II In no other way when 1t most
needs II. The government without any
frsd gold revenue is pledged to maintain
gold redemption. which It has steadily and
faithfully done, and which. under the au.
thority now given, 1t will continue to do.
The law which requires the government.
after having redeemed Its notes, to pay
them out again Us current FUNDS demands
n constant replenishment OF the gold re.
serve. This Is especially so in times o,
business panic and when the revenues are
insufficient to meet the expenses OF the
government, At such times the govern,
ment has no other way to supply its def,
sclt and maintain redemption but through
the increase OF its bonded debt. as during
the administration OF my predecessor
when SOS. SIS, 400 OF AZ per cent bond,
.raeA iaatal and cold ant tha prRaNaa
used to pay the expenses OF the govern
nent in excess OF the revenues and sustain
the gold reserve, While II 10 true tina
ehe greater part OF the proceeds Of thes,