The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-03

that the issue OF greenbaclxs xvas ,,ac.s..~.,
70 ~ save the Union. But the world has adj
since ~. "a financial knowledge and skill
na.Se .neh- There is no doubt that IL orr
government were relieved of existing de-
.n .u oplgations and our currency system
put IN working order upon a gold basis il
would be entirely possible for us to go
s-rOugh war without suspension OF specie
pay lrient OF any arrangement of our mon
ee9Iy system III war should come the
value to the country of the ability to thus
AVOID the indirect losses following from de-
financial decentralization would be so great
mat the burden of paying off now our de-
nand obllgations would be as nothing in
OPEN TO CONTINUAL. RAIDING.
While the silver dollars are not bv the
terms of the law, exchangeabIe for gold
coin, their current value is sustained by the
promise of the government to maintain
their parity with gold, so that we have a
lotal volume or paper and silver in circuIa-
tion amounting to $9OS, 728 OS7 all resting for
It's value on the credit of the government
except in so far as the bullion in the silver
dollars has value. That credit is maintain
able only as a whole. The paper of the
United States could not be dishonored and
Us silver upheld. 1t is necessary. therefore,
mat the government shall keep a large
Iund IN gold, and continue to do so so long
as the credit currency is outstanding Such
a fund in the hands of the government is
themselves against attack. In countries
Wnere the government has no demand debt
outstanding. and the gold reserve is held
capable or some degree of protection
through the rate of interest charged for
loans loans But our government has no such re-
source. Its gold reserve is an open mine
Tree to all who bring it's notes. The ext
gencles OF war or commerce are liable to
create sudden and great demands for gold
And, as the entire monetary system of the
country hangs upon that one reserve, the
situation is one of uncertainty and hazard
M fT7cI fC hI@
which is bound to continue while the gov
eminent demand obligations are extant in
large volume 1t would go far to relieve
the perennial strain of this situation and
strengthen our financial position al home
and among nations to transfer this burden
TONS
AS against these serious disadvantages
there Is no advantage which possibly
De CANNED Tor paper money In the form of
government notes over any other form of
paper money equally good-that is, equally
equally certain of redemption in specie on
demand-eXcept the saving of interest on so
much Of the public debt as is represented
by the notes. Our national bank notes
have served the uses of the people as well
as greenbacks. In all ordinary business
transactions no one cares which he receives
or pays out The supposed economy of the
greenback is more apparent than real; in
deed, when we consider all the facts, they
keep them good requires the maintenance
OF large gold reserve in the treasury
which offsets the saving of interest to the
extent of one-fourth or more. When condi-
tlons arise which threaten to deplete that
reserve and compel resort to eXtraordi-
nary measures to protect it, no limitation
of cost can be observed. and it is impossible
sary.
In order to create the gold reserve re-
quired for the resumption Of specie pay
ments in 1879. United States bonds to the
amount of $95.5000N were sold, and most
form During the Years iss4 1855 and 1855
bonds to the amount of $262. 315, 100 were sold
Throughout those years there was a con-
slant drain Of gold to redeem United States
notes. BY the law of 1873 it was provided
that United States notes Shall not be re-
tired, Cancelled or destroyed. but they shall
be reissued and paid out again and kept in
circulation
There being a deficit in the ordinary rev.
enue, these notes continued to so out again
and again in payment of ordinary expenses.
Whether the deficit would have required the
sale of bonds If there had been no want of
public confidence in the payment of the
notes, and they had not continued to be pre-
Sented for redemption, is point upon which
there may be a difference of opinion Not
clear that with interest to pay on 1857 900 600
of Indebtedness incurred chiefly, if not who'll
ly. in consequence of the existence of the
government notes. and 500 COO 600 of reserve
lying idle in the treasury, the saving in in
terest by the United States notes is small
gain compared with the unending burden
of providing for their redemption.
THE ENDLESS CHAIN"
In considering the cost of these opera
tions, it is necessary TO take into account,
also, the expense of engraving, printing,
bookkeeping and other Incidents From all
of which it appears that instead Of saving
money to the people the United States notes
have been and are now costing them large
sum annually. This cost is liable to be in
creased by the further issue of bonds for the
protection of these notes in emergencies
not now present, nor Immediately threaten
ing, but always possible.
Between Jan. i, 1879, and Nov. /, 1897, the
treasury paid United States notes in gold to
the amount of S5O7 Az, 149 being $3.50 7S9, 1873
in excess of 1861, 016. the entire amount
outstanding at the resumption of specie pay
mentS; which paid and unpaid and yet undi-
to be paid again, and, unless some change
be made in the existing laws, again and
again. Between July IA. 1890, and Nov. /,
1897, treasury notes of 1890, issued Cor the
purchase of silver bullion, have been re-
deemed in gold coin and reiSSued to the
amount of $50, 680.S79.
Moreover, we are carrying a burden put
upon us by the doubt and uncertainty which
the presence of this large demand debt of
the government in the form of current mon
ey producers, which no man can estimate.
Any one of the number of circumstances
might cause suspension of gold payment
of it's notes by the government. war,
a failure Of revenue. a commercial revulsion,
an 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 it's notes to be
dishonored The injury which all business
suffers from this condition of the currency
is none the less real because it is not distinct
ly perceived. The evil may go long unnoticed,
like friction in machinery or malaria in the
air. but it has it's effect nevertheless. When
It comes to an acute manifestation of the
evil, such as we have experienced within
the last five years, the loss occasioned is
beyond computation. Many concurring
causes contributed to the business depres-
sion which the people of the United States
have suffered within that period; but it can
not be doubted that the fact that
the entire paper currency of the
country consisted of or rested upon
notes of the government, and that there was
an uncertainty as to the redemption of those
notes was the chief cause of that great
disaster All the government notes out
standing, and all the interest they have
saved since they were issued would pay only
a small fraction of the loss which the Amer
lean people have suffered within that time.
OIrR RANIIING SYSTEM.