The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-12-07
The Work of Putting Our Finances Upon Sound
Basis Not SO Difficult as 1t Seems.
Recognition Of Cuban Belgerency Discussed Unfavoraby
Annexation of Hawaii Recommended Failure Of
International Coinage-Recprociy-
national Arbtration-The Navy.

demand obligations, or Increase the
gold reserve for their redemption. We
have s9o0,000.000 Of currency which the
Government by solemn enactment has
undertaken to keep Nt par with gold.
Nobody is obliged to redeem in gold but
the Government. The banks are not
required to redeem in gold. The Gov
ernment is obliged TO keep equal with
gold all it's outstanding currency and
coin obligations. while it's receipts are
not required to be paid in every kind
OF money, but gold, and the only means
by which the Government cael with GER
tainty get gold is by borrowing. It can
get 1t In no other way when 1t most
needs 1t. The Government, without any
fixed gold revenue, is pledged to main
tain gold redemption, which 1t has
steadily and faithfully done. and which
under the authority now given 1t will
continue to do.
The law which requires the Govern
ment after having redeemed its United
Stats notes to pay them out again as
currency funds, demands q constant re-
niesishment of the gold reserve. This
Is especially SO at times of business
panic and when the revenues are in
sufficient to meet the expenses OF the
Government. At such times the Gov
ernment has no other way to supply
rs deficit and maintain redemption but
through the increase of its bonded debt,
as during the administration OF my
predecessor, when S2G2 ,3l5,4 400 of four
ana half per cent. bonds were Issued
ana sold and the proceeds used to nay
the expenses of the Government In eX-
cess of the revenues and sustain tho
gold reserve. While 1t is true that the
Ereater part of tho proceeds of these
bonds were used to supply deficient
revenues, cOnS!dera bic portion was
required Ia maintain the gold reserve
with our revenue equal to our ex-
penses. there would be no deficit re-
quiring the Issuance of bonds. But II
the s0ll reserve falls below 500 600. .OOo
how will it be replenlshed except by
selling more bonds? Is there any other
practicable way under existing law?
Ihe serious question then Is shall we
continue the policy that has becn pur-
sued in the past; that Is, when the gold
reserve reaches the point of danger Is
sue more bonds and supply the needed
gold, or shall we provide other means to
prevent these recurring drains upon the
gold reserve? If no further legislation
Is had and the policy OF selling bonds
is to be continued. then Congress
should give the Secretary of the Trea-
sury authority to sell bonds at long or
snort periods. bearing n less rate of In
tcrest than Is now authorized by law.
Il earnestly recommend as soon rs
the receipts of the Government are
quite sufficient to pay all the expenses
or the Government, that when any of
the United States notes are presented
lor redemptiCn. In gold and are re-
deemed in gold, such notes shall be
Kept and set apart and only paid out
IN exchange for gold. This Is an OBJ
vious duty. If the holder OF the United
states notes prefers the gold and gets
1t from the Government ne should not
receive back from the Government a
united States note without paying gold
IN exchange for IL. The reason for
this Is made all the more apparent
when the Government Issues an inter-
est-bearing debt to provide gold for the
redemption OF United States notes-a
non-interest-be -bear!ng debt. Surely II
should not pay them out again except
on demand and for gold. If they are
put out in any other way they may re.
turn again. to be followed by another
bond issue to redeem them-another in
terest- bearing debt to redeem n non
interest -bearing debt
I'm my view, It Is of the utmost I'm
po"tance THAI the Government should
be relieved from the burden Of provid-
Ing all the gold required ror exchange
ana export This responsibility Ia alone
borne by the Government without any
OF the usual and necessary banking
powers to help itself. The banks do not
feel the strain of gold redemption. The
whole strain rests upon the Government
and the size OF the gold reserve in the
Treasury has come TO be. With or with
out reason. the signal of danger or of
security. This ought TO be stopped.
IF we are to have an era Of prosperity
In the country. with sufficient receipts
for the expenses of the Government, we
may feel no immediate embarrassment
from our present currency: but the
danger still exists and Will be ever pres
cnt mcrac cling us so long AZ the existing
system continues. And besides 1t is In
times of adequate revenues and bust
ness tranquility thai; the Government
should prepare for the worst We can
not avoid without serious consequences,
the wise consideration and prompt solu-
ti0n of this question.
The Secretary Of the Treasury hao
outlined plan in great detail, for the
purpose of removing the threatened re-