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About The independent. (Lincoln, Neb.) 1902-1907 | View Entire Issue (Oct. 1, 1903)
12 OCTOBER 1, 1903. THE NEBRASKA INDEPENDENT THAT 60LD RESERVE Soma PtcalUr Bookkp!ng;-34,ooO,000 Kotei Outstanding, Ymi Not la Clrculalioa "Editor Independent: Since writing toy last article, in which I called at tention to the want of agreement in the statement made by'New York city national banks to the comptroller and the reports of the New York clearing house as published in the daily press, my attention has been called to the rumor current in Washington that Secretary Shaw has been making de posit loans to me national banks out of the gold reserve fund. It seems to inpruoauiB uiai mi. ouan uv.u guilty of so audacious a violation of law when, if he wants to make loans to these banks, he can do it out of the general fund and conceal it in the same way he would have to conceal it if loaned out of the reserve. There is ground, however, for believing that there is something wrong in the man agement of funds that ought to be kept in the United States treasury. On June 1 last, the gold reserve was made up of $50,000,000 in coin and $100,000,000 in bullion. At the same time the gold in the general fund vaa $96,530,487 of which $59,678 was bullion. There" is, possibly; not much change in this particular on August 1. ; ' Mr. Shaw could not very well make the bullion available to assist the banks in a stringency. I have just received No. 1, of ser ies 1903 and 1904, of the Monthly Sum mary of Commerce and Finance. The public debt statement for July Is on page 174, and the circulation state ment and the statement of outstand ing paper currency is on page 175. It Is quite well understood that banks, when they desire, can, by methods of entries in bookkeeping, conceal what they do not want known and make their conditions appear very different from what they really are. It ought to be understood, If it is not, that the treasury department can do the same thing. The July debt statement makes it appear that there is $34,438,538 more cash on hand than there is. The two sides of this account are headed "Classification" and "Demand Liabil ities." Under the: first head are the items different kinds of money that make up the funds held by the de partment. Those who are familiar with the subject will know that every "gold certificate" issued has dollar for dol lar of gold, and every silver certifi cate has dollar for dollar of silver in the trust funds of the treasury or ought to have. It ought to be clear that when dollars in gold are held against gold certificates, and dollars in silver are held against silver cer tificates, that both ought not to be counted as cash in the treasury, even if on the other side of the account, lia bilities are increased by the same amount to make the accounts balance. In this statement for July, there is on one side of the account $412,087,869 of tnnt funds in gold coin, and oathe other Fide the same amount of gold certificates. The circulation statement shows that there was only $386,369,399 of gold certificates outstanding. The gold certificates in circulation are $25,718,470 less than reported in the debt statement These certificates ap pear in the general fund, and the gold they represent in the trust funds, and vn4t. f inii-nto a - pnoTh on hand. This doubles to this extent the cash on hands. There is a similar situa tion in regard to. silver certificates. " The coin held against the certificates is a trust fund for their payment, but the bookkeeping entries show $34, 438,538 of certificates in the general fur.d ar.u tl.e same amount in coin held for their payment in the trust funds, aid both are counted as cash on hands. Of course, the account is made to balance by reporting under the head of "Demand Liabilities" $34, 438,538 more gold and silver certifi cates than are in circulation, but the account shows that amount more cash on hands than there really is. These certificates find their way back into the treasury in one of two ways; by TTt sentation and payment, in which event the gold and silver go out as they go in; by the payment of custom dujes, taxes and dues, in which event no g'.ld and silver go out, but the gold rif nr,5-ltpd for their issue in the first instance ceases at once to be a part nf tmct ftinri and becomes a Dart KfJL, I UC V UtJV a. of the general fund. In the first in stance these certificates can only be issnPfi hv a deDOsit in the treasury. When they are received for customs, f aires jj.ti A dues they may be reis sued; but can this be done in any dif ferent way from their first issue? Ther la no authority of law that jus tifif.R tha secretary of the treasury in paying out such certificates without a denos t. of com to be neia in meir stead and for their payment. It is true, when gold certificates are re ceived for customs, etc., the gold de posit for them remains, but at once it ceases to be a part of the trust funds and becomes at once a part of the gen eral fund. If this is true then the debt statement under the head of "Trust Funds" ought to show gold coin $386,369,399 and silver dollars $154,893,932, and under -the head of "General Fund" gold coin and bullion ?98,499,878 instead of. $72,781,408 and silver dollars $27,966,217 instead of $19,246,149. This is what the circula tion statement does, show. What is the purpose of this kind of bookkeeping? To the casual observer it might appear to be. of little conse quence. There is no authority of law that can. by the most liberal, not to say violent, interpretation, be distort ed into authority for the secretary of the treasury, on his own motion, to issue certificates against the gold in the general fund, and transfer any part of that fund to the trust fund. When gold is offered, he is "author ized and directed to receive" it and "to issue certificates therefor," etc., and not othewrise. There is no au thority of law for the department to pay out one dollar of such certificates in any other way, either in the first instance or on reissue. The $34,438, 538 of certificates shown by the July debt statement to be held as a part of the general fund are not, therefore, available to increase the cash in gen eral circulation any. more than the general stock of money can be in creased by issue in the first instance. The gold and silver coin -which these certificates, carried in the general fund for July, represent is not a part of the trust fund, and ought not to be so reported. There can be no possible reason for this sort of bookkeeping except to keep this large amount of certificates itf such a position on the books that some color of authority can be assumed for paying out, in the cur rent business of the department, these certificates without a deposit of gold and silver as required by law. On the same page wHh the circula tion statement is the statement of pa per currency outstanding. - This is made to agree with the debt statement, and shows $34,438,538 more gold ana silver certificates . "outstanding" than is shown by the circulation statement to be "in circulation." How this $34, 438,538 can be outstanding and not in circulation is a tonundrum. How the secretary of the treasury can regard certificates, that have been paid and are now in his hands, as "demand lia bilities," against which he is author ized to hold a trust fund as though they were in circulation and unpaid, will, I apprehend, trouble Mr. Shaw quite as much to explain as he has been troubled to explain asset cur rency. FLAVIUS J. VAN VORHIS. . , Indianapolis, Ind. A Question of "Slopping Over" The Independent sets from 25 to 30 galleys (38 to 45 columns) of original and carefully "selected matter every week of the year. In addition to what the editors write, it has a large corps of correspondents some in practically every state in the Union and from the many hundred papers which the edi tors read each week is selected what is believed will be of interest to its readers. The Independent teaches populism 52 weeks in the year and excels any other ponulist paper in the world in presenting a luni of inforiualiuu and argument which enables independent readers to wage effective battle for populist principles. " Scarcely any oth er populist paper in Nebraska or else where says anything about politics, exrent in campaign time. Being con stantly in touch with active populists in every part of the united states, me Independent feels competent to speak with some degree of accuracy regard ing the future of populism, and, ac cordingly does not feel, altogether grateful for such excuses, intended no doubt kindly on its behalf, as were made the other day by E. A. Brown of the Times-Independent oi Loup City. Mr. Brown said: "Because the Nebraska Independent slopped over a very little bit in its is sue after the holding of the populist state convention, because said conven tion did not see fit to indorse the ac tion taken at the Denver conference of populists, mid-roaders, free silver re publicans, etc.. the republican papers are shouting that The Independent has left the party and. that, the populist nartv is dead. Our contemporary over on the alley informs us that with The Independent goes all the great lead ers. There were great leaders enough in the state convention to defeat the resolution introduced by tho editors of The Independent and furthermore The Independent says it abides by the rule of the majority because it believes in a majority rule. The editor of the Northwestern need not think he can prejudice the people by reproducing one editorial from the Nebraska Inde pendent, because The Independent is in general circulation In this county and our people understand its position." Both Mr. Brown and his "contem porary over the alley" entertain false Ideas of The Independents position. In its issue of August 21, immediately following the ' Grand Island conven" tion, it said editorially: The Independent is an advocate of majority rule and, therefore, bows to the will of the majority as expressed by the Grand Island convention. At the same time The Independent re serves the right to say that the turn ing down of the work of the Denver conference can have no other logical conclusion than the abandonment of the populist organization in Nebraska, if no steps be taken to counteract the efleet of the convention's body blow." And The Independent stands by that. It may be "slopping over," viewed by men who devote a column or two to politics six weeks in the year and re main dumb as an oyster the other 46, but it is gospel truth nevertheless. The populist uprising was a protest be cause the democratic party from 1868 to 1896 persistently refused to repre sent the economic interests of the fsrmers, small merchants, small busi ness men, and home-owners, who made up the vast majority of its following. When the "democratic party in 1896 adopted a platform which was un doubtedly in the interest of these men, and nominated for president a man who was of them and, hence, inter ested in their welfare, it was the most natural thing in the world that they should follow him. . If the people's party had at St. Louis officially in con vention decided otherwise than it did, the vast majority of populists would simply have become democrats. And an absolute certainty that from then on the democratic party would con tinue to remain on the course it adopt ed in 1896, would have meant imme diate dissolution of the people's party. But there were doubts in the minds of Mr. Bryan's most ardent populist ad mirers whether the democratic party could successfully shake off its bar nacles; in other words, those demo crats whoso interests lie with the manufacturing element as opposed to the agricultural, and who for years have succeeded In keeping the demo cratic party a mere echo of the republi can party: Hence, these populists saw the necessity of keeping up their own organization. But in Iowa, Michigan, Kentucky, Massachusetts, Ohio, jnd other states, the populist organization - was aban doned and practically all its members went bodily into the democratic party, as early as 1897 in some and not later than 190u in any of them. It was with these in mind that the Denver confer ence said: "We believe the time is now at hand when the united people's party should declare itself emphatically opposed to any affiliation with either of those par ties and unqualifiedly in favor of inde pendent national political action." Events this year in Iowa and Ohio tend to confirm the belief that with the people's party organization aban doned (which, in effect, has already been accomplished in every state but Nebraska, except where it has been revived as a result of the Denver con ference) the democratic party will re turn to its old time course of imitat ing the republican party in standing up for manufacturing, banking and rail road interests as against the agricul turists and those whose - interests lie along ; with, agriculture, . Hence, th"i need for a people's party organization. But the "great leaders" at Grand Isl and by their attitude confessed that there is no need for a people's party. They believe in "affiliating" with the democratic party that is, abandoning their own organization and becoming democrats next year. That is the only logical construction which can be placed upo tnelr action." If the peo ple's party cannot declare for a future course of action without permission of another party then it has no reason for existence. And that is why The In dependent "slopped over" and said that "the turning down of the work o? the Denver conference .n have no other logical conclusion than the abandonment of the populist organiza tion in Nebraska, if no steps be taken to counteract the effect cf the conven tion's body blow." But these steps will be taken. strictly private, and confidential. All rrivate letters they answer personal ly with a pen and thus avoid the pos sibility of information ' getting out through the carelessness of a confi dential stenographer. Tell your trou bles to Drs. Searles and Searles, P. O. box 224, Lincoln, Neb., and you will never hae occasion to regret it. An Inaccurate Historian It may be rather late in the day to correct inaccuracies in the chron icles of populist politics but "better late than never." The following is quoted from the Seward Independent- " Democrat of August 27 : "In the populist convention ex-Governor Poynter lead a movement to in dorse the action taken by the Denver conference, but it was voted down by a large majority. Among the leaders of-the opposition to indorsement were M. F. Harrington of O'Neill, ex-Lieutenant Governor Gilbert of York, Con gressman Stark of Aurora and Judge Sornborger of Wahoo." Bro. Smith's informant is in error or else is an excellent mind-reader because during the debate on the resolution seeking - to approve the work of the Denver conference, Judge. Stark took no part whatever, and it is unfair to charge him with being "among the leaders of the opposition to indorsement." Judge Sornborger tried to take part, but. failed to get lecognition from the chair; but Judge Stark made no attempt to speak. It may be, however, that Bro. Smith re garded Hon. F. M. Howard's speech as indicating Judge Stark's position a sort of Mark Twain and Harris affair. Good Enough For the God Editor Independent: My feeble pen has long been silent. You ask in the paper if we can- trust you, and I an swer: "Yes, yes." We will trust you until our government is once more in the hands of the people of the country. I am very sorry to learn that some of our brothers in Nebraska have played a trick on the Denver conference. I am pained to know it.- It is said-tw. the people's party is dead. It is not so; it has only been reposing, await ing the time to do its good and great work in the interests of our people. We don't want any doubting Thom ases. We want men who will roll up their sleeves and go to work. Let us tell our doubting Thomases that we have furnished all the reforms to all the old parties. It may take time to educate the people, but we must break the ties that have bound us, hand and foot, for forty years. It took 100 years to wipe out the foulest stain on our government, to-wit: African slavery. Let us be as true as the men who fought for that and go forth and bat tle for the rights of man. . Our old Omaha platform is grand enough, great enough for the gods to stand upon and wide enough and long enough for every loyal man. J. McGOVERN. Glendale, Colo. Your Troubles Readers of The Independent who have troubles physical troubles ill ness of any kind or character, should write to Drs. Searles and Searles of tMs city giving a. full description of the trouble. It is folly to suffer from a disease that continues to weaker the system, sap the energy and event ually claims your 1 if e-when you can ret treatment from specialists who will cure you in a short time. Many cases can be successfully treated by ir.ail. These doctors conduct all their On the Firing Line Editor Independent: I see so many letters in The Independent from the Old Guard that I cannot refrain from saying a few words of encouragement to you and the many friends of the populist party. It don't matter where I was born. I am here and on the filing line. The action of the Denver conference was all right. The attitude of The Independent is all right and I wish we had just such a paper in every state in the Union. I see now that we made a mistake. I do not wish it understood that I fail to appreciate the efforts of Mr. Eryan and his noble followers to bring about much needed reform, but the time is past for reform in the democratic party. Now is the time to- push the populist party to the front. There are millions of recruits ready to join tne popunst party as soon as they find that our party intends to pursue a non-fusion course. Republi cans will not be pulled Into the demo cratic party on account of prejudice, neither will democrats go to the re publican party for the same reason; but these recruits are anxious to get into a party which advocates prin ciples instead of spoils. L. McREYNOLDS. Lincoln, Neb. The readers of The Independent should remember that one of the best methods for favoring the paper is to examine the advertisements carefully and make purchases from advertisers when possible, always mentioning the fact that the advertisement was seen in The Independent Write today for the several catalogues advertised ami, look them tnrougn tor wnat you want. 1