Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1894-12-09

would cen 10 present a hopeless
case for reasonable Legislative aid
In order TO stimulate commerce the
President recommends the prompt re-
peal Of the Law denying American
registry TO ships built abroad and
owned by Americans.
The financial portion of the message
is as follows:
Nothing could be worse or farther
removed from sensible finance than the
relations existing between the ear
rency the Government has issued and
the gold held for its redemption and
the means which must t-e rssu:tei "a
for replenishing such redemption
fund when impaired. Thee obiigs.
tons, when redeemed in gold. are not
cancelled. but arr: rcissred. and may
do duty man! times by way II d=aS
ing gold from the treasury. Thus we
have an endless chain in operation
constantly depicting the treasury. o.
its gold. and never near its final rest.
As IL this was not bad enough. we
have held by statutory declaration
that ii is tbs policy of the Government
to maintain a parity between gold and
silver. and the force and momentum
OF this exhausting process has added
largely to the currency obligations
claiming this peculiar gold redemp-
ton. 1t Is palpably plain hat the
only way under present conditions by
which this reserve when dangerously
depleted can be replenished is through
the issue and sale OF bonds by the
Government for gold. and yet Con
gress has not only thus far declined
TO authorize the issue OF bonds best
suited to such purpose, but there
seems a disposition in some quarters
to deny both the necessity and power
for the issue OF bonds at all
Continuing, the President says: Il
cannot for a moment believe that any
OF our citizens are willing the Gov
eminent shoulddefault in its pecuniary
obligations or that its financial opera
ton should be reduced to "a silver
basis. At any rate | do not feel that
my duty was done il / omitted n
effort l could make to avert such a
calamity. As long, therefore, rs 10
! provision Is made for final redemption
or the putting aside Of currency obi
cations. now used to repeatedly and
constantly draw from the Govern
ment its gold, and rs long ms no bet
ter authority for bond issues is allow.
ed than at present exists such author
ity will be utilized whenever and rs
often as it becomes necessary to
maintain a sufficient gold reserve, and
in abundant time to save the credit Of
our country, and to make good the f.
nancial obligations of our Govern
nent. The question relating to II
banks and currency are closely con.
nected with the subject just referred
to and they also present some unsat-
istactory features. Prominent among
them are a lack Of elasticity in our
currency circulation and its frequent
concentration in financial centers
when u Is most needed in other parts
OF the country. The absolute Iii.
roTcement % Government from the
business 81 banking l. the ideal rels-
ton Of q g0yeroLnent to the ~circula.
ton 81 the country. This condition
canno. be Immediately reached. but
1t Is a step in that direction and Us a
means OF securing a more elastic cur
rency and obriating other objections
to the present arrangement Of bank
circulation the Secretary Of the Treas.
ury presents in his report a scheme
modifying the present banking LAYS
and providing for the issue OF circu.
lating notes, free from taxation TN.
der certain limitations.
The Secretary explains his plan 80
plainly and It's advantages are de.
veloped by him with such remarkable
clearness that any efor, on my part
10 present an argument in its SUPPORT
would be superiuous. / shall. there.
fore. content myself with the unquali.
lied Endorsement Of tho Secrstary's
proposed changes in the law. II is
proposed to repeal all laws providing
for the deposit OF United States
bonds as security for circulation: to
permit national banks to issue circu.
lating notes, not exceeding in amount
seventy-iive per cent. OF their paid up
and unimpaired capital. provided they
deposit with the Government. as q
guarantee fund in United States lie.
gal tender notes, including treasury
notes Of 1890, a sum Of equal amount
TO 30 per cent Of the notes they desire
to issue. this deposit to be maintained
at all times. But when any bank ~.
tires any part Of its circulation a pro.
amount OF its guarantee
fund shall be returned 10 IL. In nd.
dition to the guarantee fund il is pro.
posed TO provide a safety fund for the
Immediate redemption Of circulating
notes OF failed banks by imposing n
small annual tax. say onc.half Of one
per cent. upon the average circula.
ton Of each bank, until the fund
amonDis to . per cent. q, ,Er total
outstanding. WEo..a bank fails its
guarantee fund Is to DO paid into this
fund and it's notes arc to DC re-
deemed in the first instance from such
sufcty fun1 fhua ou,n,ontoi a.