Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1898-01-06

" mofb tIhp " pbr Ceub CtllI rtiidlu
as the ovidenae OF q danger to the
existing standard, the question may he
lsft to the future whether sume part Of
these silver rollars should BIO with
drawn and sold aa bullion
DEMAND OBLIGATIONS.
Another nstrHInantRlity by which
the standard has been threatened exists
in the paper promises OF the govsrn
nent To pay on demand, lhesa IN
cluas not only the United States notes
fgreenhacGal hut the Treasury notss
OF 1890, which aIsu have full loyal
tan1er quality II mnat be recalled
TINT froai tue adoption of the Cuusti.
tuition to the civil war, only gold and
silver were made full legal tender.
1t is COW time to return TO tho safe
faith Of our fathers. lho ISSUE OF
United States notes in tbs civil war
was undertaken in ignorance Of the
necessary distinction between the fiscal
duties OF the Treasury relating 10
the receipt ami dihur7einent Of public
revenue and its monetary functions
relating to the issue, exchange and
redemption of the currency. 1t was tho
result Of unpreparedness and emergency
| it lowered the purchasing power OF tho
soldiers pay and the general wages nf
labor throughout the country. ny de.
preciating the standard and increasing
| tine range of prices ii cHussd 40 enor-
| nous Increase in our national debit; by
| fixing the standard in a vaCillRting
paper currency il afforded opportunities
| for speculation on gigantic acRle, and
exaggerated our commercial crises. LII
has educated the people, who used the
| falsitied promise of tho government, IN
| false notions concerning money; 1T &C
customed the public mind TO the idea
of settling debts by othor means than
| full value received it suggested that
tbs paper derived its value solely from
the government stamp" aud became
4 the root of evil in recent schemes to
| scale indebtedness by cheap money.
| paper currency, moreover. created by
Legislation, is fixed in volume by the
law OF it's creation, and can neither
contract nor expand IN response 10
those varying conditions which nro
bound TO occur in the Affairs of men.
Nor is 1T true that our government
paper has hesn a ''lnan without in
terest.' Since reserve in cash must
be provided for demand obligations,
the cost OF these reserves must always
be taken into account. Owing to the
statute requiring the reissue OF these
notes. the bonded debt has heen in
creased by more than the total amount
at the United States notes; the notes
have been repeatedly redeemed and yet
the whols amount Of this demand liza
bility is still outstanding. The pro-
lection to the demand obligations oil
the government used as money is at
present only in this general funds of the
Treasury, applicable alike to fiscal and
monetary needs. From this fact gruye
confusion has arisen. The existence OF
go large an amount of demand Obliga
tons in the hands OF the people affords
az opportunity to ill.dspoaed persons ia
embarrass the Treasury 10 times OF
danger or war which should not be
allowed to exist. War. a failure OF
revenue, commercial reyulsioD, IN
election, a weak President.-any one Of
these unfavorable conditions, exciting
alarm and then panic, might cause the
Treasury to be depleted of its gold and
its notes to BIZ dishonored. 1t IS a
dangerous weakness in our system that
to day the decision whether our stand
ard shall consist Ct gold or silver rests
with the executive. The danger in the
existence OF SO large demand debt oil
the United States as S90S, l2S, 0S7 arises
from the fact that the government it
not in position properly to protect It'll
gold reserves. These reserves are ex
posed to attack, without any means Of
resistance suoh as lie In the hands oil
| banks when obliged to protect banking
, reserves. Tho serious aspect of tht
present situation ia more clear when il
, 10 understood that il the government
should raise any doubt as to its ability
. to redeem its demand obligations, Their
all other forms of the currency de
pendent upon the character of our law
ful money become of uncertain value,
Hence n doubt as to gold redemption
/, by the government throws diHcredi
,, and doubt upon the maans of paymen
, by every financial institution OF th'
county, and sends a nervous tremo
through the whole organization OF trad
/ and commerce. The slightest question
as to thu attitude of the Treasury 81
intimately affects the prosperity of on
i country that it is imperative that tn
!, government should cease to occupy thi
! critical position in regard TO the none
Of tho country. This is all the NOR
! true when it is RECALLED that for /
: years the government made no pre-
: tence to keep Its promises, and tn
i remaining forms Of currency of th
+ country had correspondingly deterio
n rated.
AS first and essential step in thi
q reform, the funds of tae Treasury con
\ nected With the currency should b
kept distinct from those pertaining t
> income and outgo by assigning then
!, to division OF issue and redemption
:. 10 begin, from tho present stock of gol
in tho Treasury reserve should b.
a placed in this division amounting to 2
n per cent of tho total demand obligation
4 OF the Treasury, together with sun
i of 5 per cont of tho outstanding silve
a coinage. In addition, the Secretary q
the Treasury ia authorized to cell bond
g for gold to meet any possible demand
:, fur redemption, So snun al thi
# authority il granted no further questio
;, will ever be raised as to the willing
y ness and ability of the Treasury to re
a deem its demand obligations in golu.
Tne commission recUmWHnd the entir
!. but gradual retirement of all govern
), ment paper money. In orner that thi
/ may be done conssryatively and with
= out reducing any needed portion of GU
= :, circulation, the government note
I when redeemed should be at ono
a cancelled up to the amount OF 800, 900,
+ 900. After that amount shall hav
: been paid and cancelled. the TreRaur
j. shall from tins to time cancel sue
further amount of notes redeem ed dun
ing the first five years as shall equal
q hut not exceed, the increase OF nationf
= bank notes issued subsequent to th
"a taking effect of the propused act. II a