The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-11-17
THE DUTY OF CURRENCY REFoaM.

The most common objection made to any
attempt at currency reform is that "our
monetary system is all right as long as
the government revenues exceed the ex-
penditures. so what is the use of tinkering
with the currency?" There were those who
opposed the bill for the resumption of
specie payments in 1879 on the ground that
it was dangerous to tinker with the cur
rency," and great many persons oppose
the retirement of the greenbacks now on
the same ground Tinkering with a sound
currency system should not be thought Of
but if a system is unsound an honest at
tempt to amend it should not be called
'tinkering"
Let us examine little the statement that
our currency system is all right as long as
the government revenues exceed the eX
penditures. A short time after Mr.. Gage
became secretary of the treasury, in de-
claring himself in favor of currency reform,
he said we should not initiate the conduct
of the man who lived on indefinitely with
a leaking roof because when it rained he
could not mend it and when it did not rain
it was good enough. The illustration,
though horleIy, is a good one OF course,
wise man knows that another storm is
always coming some time. and that If his
roof leaked before it will do SO again.
Therefore learning from the past, he pro-
vides against the future Those who as
sert that our currency system is all right
as long as the government revenues ex-
coed the expenditures virtually admit that
a condition may arise in which 1t is not
all right, but that until that condition does
arise we ought not to tinker with the
currency" They would continue to use the
leaky roof until the storm comes, when
they cannot mend it, They assume that the
only thing that can cause monetary panic
is deficiency of revenue. If this were
true 1t would be strong proof that our pres
ent currency system is defective, because
there ought not to be- any such connection
between the revenues of the government
and the currency of the people as that a
falling off in the former would affect the
latter. The circulation of the country
should be entirely removed from the posi-
bilty of such disturbance. But it is not
true that our currency system is all right
as long as the government revenues exceed
the expenditures. Some of the worst pari-
les the country has experienced in the past
twenty-five years have occurred while the
revenues of the government exceeded its
expenditures, and in all of them lack of con-
fdence in our currency system was either
an important factor at the beginning of
the panic or became SO as it continued.
This was notably the case in the panics of
1873 and 1884. There was deficiency of
government revenue in those years, and
the so-called endless chain by which the
treasury was depleted of gold to meet cur
rent expenses had not yet been heard of.
Yet, when the strain came it went straight
for the weak spots in our currency sys-
tenn The defects of to-day existed then,
and will continue to exist unless they are
cured regardless of whether the revenues
Of the government exceed its expenditures
or rot The roof should be repaired before
another storm comes.