The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1898-12-05
The Last Ditch.


OF the many illusions by which the
slverite demagogues seek to delude
their followers, the most egregious is
that in which they allege that the re-
sources of this country are pledged
to redeem paper money and deprecated
currency of every variety hitherto in
vented. The resources of this cOun-
try" are not hypothecated for any such
purpose, nor is it possible to do so un-
der any conceivable conditions. The
resources of this country" is a very
vague and indefinite term. But re-
duced to it's simplest proportions, we
take it to mean the general wealth
of the country, that is to say it's ac-
Cumuated wealth, capable of being
capitalized at a longer or shorter no.
tice. If this is what the demagogues
mean by the resources of the coun-
try" then it is plain that in order to
insure the stability of a depreciating
paper or silver currency a resort must
be had in the ultimate issue to con-
fiscation. The resources of the coun-
try" with the exception of government
lands, are in the possession of private
individuals, who are no more bound
to pledge their goods and chattels in
redemption of a deprecated currency
than they are to give them away for
nothing. Taxation in all civilized coun-
tries is first charge on private re-
sources for national defense ana the
security of life and property. There
is a limit to the amount of money to
be raised in this manner, even in such
unconscionably taxed and pauperized
countries as Italy, Spain and Turkey
| or even in such rich countries as
| Great Britain and Germany, where, as
| in London, municipal taxation some
| times exceeds half the annual rental
value of real estate. No government
ever yet undertook to pledge the re.
sources of the country to maintain q
| deprecated currency at par. The
| thing is almost unthinkable and Ger.
tainly unworkable. 1t runs counter tC
the great law of self-preservation. Al
| the government can do for this purpost
is to borrow money to maintain it:
| reserve Of gold to meet it's paper anC
| demonetized currency at their fact
value, a value which was paid for it
| 1t is true that the money collected t
pay the interest on these bonds is RAISED
by taXatiou, yet only the interes
and so much of the principle is repre-
sented by the amount of the deprecia
tion. If there was no depreciation
there would be no occasion for Dor
rowing Money does not eVaporat
out of our treasury. Every cent of i
is held to strict account. We mus
not, of course, confound the opera
lions of the treasury as the nationa
banker, with the expenditure of tn
government. This is the only countr,
in which the government acts as tn
national treasurer, 1t is an expert
ment, and a very successful one a
X has turned out SO far.
There is a limit and a very narroy
one, TO the plenary powers of ...- gov
ernment meeting a deprecated cur
rency with national bonds in exchang
for gold. 1t reached that limit dur
|
tion. Such method Of sustaining dc
preciated currency is unjust and in
qutous. 1t is a tax on thrift and in
dustry. Outside Of this country his
tory affords only one such parable
When the Bank of England closed il
doors in 1883, William Pitt pledged tn
government TO sustain the credit {
that institution. Mark you, he did nc
pledge the resources of the country.
He had no power to do S,
II he even thought of such an i'm
possible thing, The panic was allayet
the bank opened its doors, never in a
: human probability to close them agai
in such a contingency. Kings hay
| pledged their crown jewels to rails
money; Frederick the Great conVerte
( his plate into thalers, but the resource
of the country could not be touched /
opposition to the will of the people fc
such a purpose, or for any purpos
} National resources and national cred
( are to certain extent convertlb
p terms. When the national credit b,
, comes deprecated, the national resoul
ces remain, but they are not immed