The sun., 1902-12-04

vide an elastic currency, available in every
, harhing community and sufficient for the
leeds Cf tina, locality. This, think, can be
accomplished either in the way | have init
tut'"d or h' - .., "a other methods "
FEWER REsTLI rIoHs on PUBIC DEPOSITS.
.s,.,p..., .>.jW ln4. ~ t..a, "a .!r-a -,
prnmt tohc' ~ times Of mCuctary stiih-
grucy would Lr ~ rdcG tue Treasury De-
IaI1 ncnt If tG - ""r, & wer restrictioIs
un 'hc Crp"sti'.g of public fcnds in the
hr"kr =" say
lfuutEorty were granted to make d.
p,.rS wi'hpU security, after sI-.uia!
examination and at such rates Of interest
IS rh" Secretary Of the Treasury might
ur'orr.Lc, quite IA element Of e'7s-
,ioiiv would - provided Whenever "A sur
plus Of rrv"nrcs existed. By advancing
nr lowarjnG the rate of i"terest an epuilib-
rum could hc maiu'ai;.ed throughout the
country. and n interest charge would more
than cover any los.
"Bul if il should be deemed unwse 10
permit the loaning of public fund.- without
specific sec,iritv. II GER aiuly would !" well
10 authorize deposits direct from the Treas
ury AID, AZ nov, upon satisfactory security
ii such authority had existed during the
last few months the something more than
$50 100000 which was paid to the owrCrs OF
Government lurds would have been de-
posted IN large mum, or of reserv" cities
throuC iOut the -Uilrtr", and the reliei
Afforded would have been equally reIIna-
nent and more widely apprecia'ed,'
PRoTEC1IoN oe SILVER COINAGE.
An important recommendation of the
Secretary l. that there be an express pro
vision # law for the exchange ability of
gulc and silver coins a. parity ty IN Treas
ury. In his discussion of this subject Mr
Shaw rCyprtS 10 the financial pane ii lsy3.
vh..se cnu~" he finds in the boarding Of
..' On account of fear that g"prnbHck~
and Trcasuiy notes might bc redeemed in
tod LID rnl
Subsequently, he says, on March II, 1900,
Congress "r'CorniIiug that the parity O.
'hr demand obligations Of the Government
could not long be maintained when re-
de"niahlc in anything other than standard
GO H. cXIre-sly provided for the redemption
of lrchnbaCks and Treasury notes in gold.
No ur son has vet been made for tho
red sur.. or. { silver or its exchange TO-
gold 4 ere are nov outs standing, IN round
GyI.cS ,.,r 5000 coined SILVER dollars, Of
ma ..'iA' worth not - cents each. as IN
1885. Ia, '"-- ;Nan 40 cents each; and there
l. no A,,r, - provision of law To % Ot"ct
the holder should pubic rcvenu" again fan
below current expenses and gold c"as" to
how into the Treasury He continues.
1T i, true that hy act Of Congress silver
il receivable for customs dues and other
debts, 'It the same law existed in 1898
and il reserves Ia the Government the
right To pay ia silver and cumpels its cred
l'or- 80 accept inv same at par. .t II doubt
'll II ne ~tN'fN Dl tl!' HESS Iltli 'DN-l'l
ba established by his agreeing 70 accept
his own oblic.tions ON debts due 70 him
self while refusing to redeem the same i'll
any money hls creditors might deslguat".
He might escape litigation 50 long as p" re-
manned "A great creditor and "A small debtor,
hut not aftrTward, and It no time would
his business standing fail 10 sufcr.
"Natioua. bank notes are secured ny
SPEC ial deposit Of Government bonds, IN"
principal and interest of most Of which are
payable in gold, buI the notes themselves
are payab!n in n,wful money which
incluias irr,d.cmable silver dollars mora
rhap ~ per cent fiat. Tn p esent national
bank issue - 3HSl,D0,OOO, and there are
nov outstanding jjG,C H,OJ silver dollars,
worth 80 GEMS each in gold The aggregate
unprotected fiat az this time Is therefore
s5G5 ,oO0,GrO. or SIS OOo,ooo more than in
1898.
PRESENT PERIL TO BUSINESS.
.Not only current Obligations Of the Gov
ernmCut but all contracts between citizens,
and all bills Of exchange, domestic and for
r'En payable N United states money, are
di-chargaable AT the option of the payor
teyCrpt when otherwise expressly pro-
vidrdl in money coined on Government aC-
count and at fully 35 per cent. profit to the
Government. the bullion in which is worth
less than - cents on the dollar.
-rhe peril involved in this condition may
be avcrted for a time, and possibly for all
time. The evils that precipitdted the dis
astcr cf 1913 escaped popular, though not
universal, r" COguition so long as public
rnvenues exceeded expenditures. The rea-
son assigned why the eNchangeabil'ty Of
gold and silver should not be established is
that it would entail 80 large an obligation
that the ma iuual credit would be endan-
gor"l !. This comedies the argument, but
plead, the prefer. ace that the Government
which has Coiu"d this silver and pro'itcd
thereby sh Al l," protected regardless Of pos
go fiaI,.y4r l., a and rl IN
business.
Il believe the Treasury Of the United
State, No.ld ha in less danger with an
express provision for the eXchangeablity
Of gold and silver ,han under existing
laws. AZ tie present time the Treasury
furnishes all ia, gold needed, whatever
j" plrIo,n for which it is dema ndcd,
and certainly no rrore would be required
Tor commerce. ana not as inu' h Tor hoard
ing, should all doubt n 20 the status Of
silver be removed. On the contrary, II
all forms Of money were made the equiv
alent OF gold. then all occasion for boarding
Dir. cola more than aI.Oi her would vanish
and rhc danger 70 the Treasury would be
Giuinl- -hCd instead OF being increased.
lhc ability e tbs Government TO fuifl
irs promises las never been qie-tioneG.
hu' doubt, arising from unexpected iolicic-
have Cauecd more than enc crisis.
Ssh, Md u he doomed wise to provide for
th" "Schang gcahility of gold and silver, then
lil.''ltl bdIih notes tIIlgl' ne U'h'lt lHNllHf
m gold. Ia This way there would be shifted
20 he banks th" greater burden of furnish
iic gold for domestic use and for export
and t''~, in IA" event Of an unfa vorable
bgianc" Of trade, might prove Of great
advantage to the Government, II would
hc manfcstly unjust, a. well IA illogical,
10 require hauEs 10 redeem their notes
in gold 50 long as legal tender silver re-
Mains irredcemnble and xchHugeable.'
suBsIDGAlti COINAuE
Another important pan which Secre-
'ary .ha" proposes is the utilization Of
IN" Si'Nc" bullion now in the Treasury for
subsidiary CONS The aRgIcgate of tn
minor coinage permissible under existing
laws, lac says, j. sly 10000 The limit
has been reached tut the demand for
sNhs,d!U coins is 10y no means sal -t:ed.
and III" ID 'partmeu' even now : unab" 10
III al, or ~ therefor He adds There
i low L.. the vaults Of the Treasury suf-
lici'ri DALTON 10 coin, in round numbers.
80 5000 silver dollars, 0r s3s,WN, NO IL
subsidiary COINS The vaults of the l reas-
ury are crowded With silver dollars, the
amount ug which will perhaps he better
appreciated hv stating that the space OC-
rnp' q IN this way l. he 'luivai"u' O'
rudiNg feet Nit!r. 10 feet high, aud $50
i""t tuUg. This volume i being Increased
a, ~" RAJ" ., a million and n half per month
Tie report says that the receipts of thu
Gov"ruiu, Mt for the wear ended june 80,
1902, Eor" 1894 800 2SO and the expenditures
si93,pdS 9S, showing II surplus of SOL
2s.37j. Coz 'pdi"d With the fiscal year
ln 1 her" Mas net decrease Of receipts
for lNIp of tll g1D p,D and "a p,.t ,,pg,...a