The Washington times., 1901-11-03
Our Financial strength.

The condition of our National Treas
ury has probably been made the subject
of more misapplied rhetoric and faulty
logic than has almost anything else con-
nected with the public affairs of the
country. Ever since the close of the civil
war the United States Treasury has
been tolerably healthy financial insti-
tuition. There never has been a moment
of time when the Federal Government
could not meet every item of current
expenses, as well as every legitimate
demand for the redemption of United
States notes. There was a time when
the deliberately planned looting of the
Treasury in order to force the issuance
OF bonds to some extent shook public
confidence. but the fictitious and fraud
ulent character of that move was long
since laid completely bare. 1t is now
known that there was no legitimate rea-
sen for the raids upon the gold stock of
| the Treasury at that time That the con
tinuous run upon the gold reserve was
forced one, designed for a sinister pur-
pose, is. .conclusiyely proved by the fact
that the runs were stopped just as soon
as President Cleveland and the Morgan
syndicate agreed that they should
stop. and this agreement was reached
the moment it became apparent that a
continuance Of the bond issues would
jeopardize the chances of the Repub-
lican party in the election of 1896.
AT no time since 1865 has there been
a bona fde doubt of the financial
strength Of the American Government
And why should there have been, when
ii has had the vast aggregate of our
national wealth upon which to draw
But many have argued the matter as
if, in their judgment, the financial
safety of the nation depended upon the
piling up in the Treasury of huge
masses Of money far in excess of any
governmental needs Every dollar of the
Treasury surplus is just so much with
drawn from circulation to the direct in
jury of the country's active and pro-
ductive business.
Spellbinders swell up with enthusiasm
as they proclaim the fact that under
. the policy of their party there is a bill
lion dollars in the Treasury vaults, and
many ~thers will applaud the utterance
as if it were grand thing for the coun
try. If ii is good to have billion dol
lars In the Treasury it must be better
to have two billions there, and If the
amount reach three billions the blessing
must be correspondingly. amplified
When, however. We turn away from
mere partisan fiapdoodle and consider
the matter analytically we at once per
ceiye that the stacking up of unneces-
sary money in the Treasury is neither
beneficial TO the people nor an addition
to the Governments financial strength
Wall Street recognizes these truths dis
tinctly and painfully. Conditions in
that centre of speculation are such that
the operators there are the first to feel
the approach of monetary stringency,
and on such occasions they never hest
tate TO appeal 10 the Treasury for a
release of a portion Of the money that
is tied up, an inert mass, in the Govern
ment vaults. Generally such help is
given, and when it is. the action of the
Treasury is always supported by the
explanation that an excessive collection
OF revenue is bad for the countrys busi-
ness. So It is.
Money has been characterized as the
life blood Of trade. An undue curtail-
ment of the amount in circulation Gre
ates a condition Of business anaemia,
and, as q result, there is an immediate
slowing down on every financial and in
dustrial line. The financial strength of
the Government is evidenced not by
the amount Of the Treasury accumula
tions, but by its ability to get money
when it is needed, and this depends
upon the resources of the country I3X-
cessive taxation is no proof Of high
class statesmanshp.