Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-05-17
u.x,xLry CURRENCY REFORM.

yramme II IS said contempates the
,,radual withdrawal from active circula-
ton Of n greater portion, IL not all Oh
Tn. government notes. To this end ne
would separate the redemption OF the
notessfrom the other transactions OF the
Treasury, and provide that such ho'es
once redeemed shall not be reissued' ex-
cent in exchange for gold.
AS we have frequently said. we have
no idea that the Republican party VIII
ever address itself honestly 10 the ques-
ton OF currency reform. The interests OF
all those upon whom Mr.. Hanna and the
other Republican bosses depend lot 'h7
sinews OF war are with tho present sSs-
TEN. The currency reform issue IS a eoou
enough Morgan for the RepObhcahs W
iuggle with for the purpose OF dece'Vl"s
the neople into the belief that their party
truly designs giving them relief. But De-
yond that il is idle TO expect any'h'"s
from them. Currency reform VIII never
be accomplished until the misses come
TO a full realization OF Republican ch'-
canery in respect of the matter take hoiu
If IL at the polls, and sweep the kepubh-
can party from power.
HoUeyer. admitting for the sake OF
argument. tina. Congress will carry out
Mr.. McKinley's programme, the quesuch
arises. would such action be step III
fhe direction OF reform? Mr.. Mckinney ;
nroposition as regards reissue Of notes
involves acquiescence in the contention
insisted upon by so many, that the great
evil of our system lies in the endless
chain" through the operations OF when
the government note is a constant menace
10 the gold in the Treasury. Al present
these notes can be reissued and uSeu
over and over again to draw gola OUT OF
the Treasury, and, as is well KNOWN. 'heS
serve TO relieve banking OF one OIL ''S
legitimate burdens. When desired "e
banks may. through them, get the soid
reouired for export from the government
instead of taking 1t out OF ther o""
vaults. Recently, owing to the excess VI
exports Of merchandise over imports. the
banks have had no occasion 10 AVIAN thein-
selves of their ability to draw treasury
gold. But how had it been for SONS years
back. and how would it be should export
and import conditions become reversed!
According to Il statement In the Ne"
York Journal of Commerce, for the four
wears preceding the advent of the present
normal period of gold exports the
banks Of that city turned into the Sub
Treasury a yearly average of SSJWVVVo
Of legal tenders to procure gold Tor snip
ment to Europe, and for the five next
preceding years Qs8 TO 1892, lncluslVel
the exports of the yellow metal averaged
close upon $50,0OO00O per annuIn. Assuin-
ing-and the assumption is entirely war
ranted-that there will be recurTencss 10
seasons in which merchandise imports will
exceed largely merchandise exports, the
prospect would, at first blush, appear very
favorable for getting rid rapidly OF the
endless chain" Mr.. Mckinley proposes.
as stated above, that The goid-demand
notes shall not be ressued except for gold.
That is taking on its face. But gold
is very inconyenient thing to handle.
1t is not easy TO transport 1t is not the
currency of the people. The most ardent
goldbug is very much like the French
man who checked for the full amount
he had i'm bank when he heard a rumor
that the institution was "shaky", and upon
finding that he could get his money he
did not want ii. In view OF the scarcity
of notes, and their greater adaptability
TO business transactions. holders Of gold
would. as suggested by the Journal of
Commerce, be likely TO exchange their
gold for redeemed notes held in the pro-
posed department of issue and redemption.
Consequently, there would bo danger OF
the endless chains being started again at
any time, and it might be started at
most critical period in our finances.
Therefore it is apparent that the Presi-
dents scheme of reform is liable to prove
a snare and a deluson. If 1.-THE endless
chain is the root of the evil of our finan-
cial system, the only way to deal with it
is to uproot it utterly, by providing that
under no circumstances shall demand
note be reissued after having once been
taken into the Treasury.
But making for the sake of argument
the further admission that holders of
gold will not exchange it for redeemed
notes, the carrying out of Mr.. Mckinley's
programme would render our last condi-
ton worse than our first. Every note that
went into the Treasury would count for
so much in the direction of contracting
the currency, seeing that the gold taken
out in exchange would be largely hoard
ed, and the Presidents plan, as we un-
derstand it, embodes no provision for
filling the place of the redeemed medium.
Even the most bitter enemies of the end
less chain must recognize that the coun-
try could not stand further contraction
of the note issues. which are the real cir
culating medium. SO we are forced TO
the conclusion that, even If the President
is sincere, his programme is irrational,
and it's contamination would not benefit
the people or business in any manner,
shape. or form. However, our suspicion
is that ii is only intended to open the
way for another Republican juggling per-
Torrance.
------------.
The Baltimore Herald believes in en-
couraging baseball, and takes great pride