The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-05
THE CURRENCY REFORM.
DETAILS or THE PLAN AS AD-
VANCED By MR.. CARLISLE
Ht. Annual Report TO Congre's-ihs
Secretary Also Urges Further iaf'"
Reforms.

the Secretary Of the IItdSu's' "''
sent TO Congress to-day, Is the eAh"uS''
attention paid by that ofhcial to thc 'o"-
ditiOn of the Treasury, ana '"''''~'
form. In opening the secretary - -
lions that the excess OF the eNpehu'."
over the receipts during the laS'
vcar was Sg. .S03 260 and during the H's'
ave months Of the present hsca' year.
S2l7E.s67. II Is not believed, however ne
writes. that this difference between
ceipts and expenditures will continue IN
-, srd acrordiuelv ne estimates de-
fciency OF S30Up0 at that time Whie
ne further expresses the oPiIlloIl ma tnao 90
present law viii Weld ample revenue ~, ~.
H. Gscai vear lSB. as an its provisions
will then be operative. ana pIV9PNC.,,r-
improvement in the business OF InS M ~ ibe
ny. ~ realized, viii grcatIy IN, ,neo'iiected.
sources from which taxes ar WI WI an is
and accordingly "A surplus OF S~o''i'
estimated for that year.
WHY PONDS ARR ISSUED
Tne Secretary recalls attention 10 I,ae re-
opinions conveyed in ms id"S "u "tnrv con-
port regarding the "unsa ,s.", md es-
duion of our tiauacial legislation, .t .i'L 81
pecially to the issue ana Itlcil.,,PrSt and
circulating notes by the 'oN ~ of the
the Inability of the SeeIc,diS make
1sreoeWrt, ,n3cr existing laws 10 man
Y,romut and adequate PROVISIONS ~ ~ ev
supp II OF the public creat.., rondrm-
periences Of the past ye+tnCnrn yetl expressed
ed the Sccrcttry's htrtloIUi,t ,,,rlts the
\,ie,cs and n. urges upon touSI e .1',,treT
necessity for remedial leSslauUn 90" tbe1
mo present session. Inc 0tSl loryy go otirai
-. 80 Pfo-tb a statement of the prdiuI
end unavoidable results OF eAlsuhe ,Ib'to
Iatiou. which, ne says, VIII 'GGnrancial
ia injurious effects upon oui r''rnsnt
Affairs more clearly than any a t'o,,t
.h 'ao.,'iJ ie submitted. This staiement
nv tho Secretary includes Itlti cu,Ltcb
the reductions OF the gold TeSeirE3S ,oo1 % and
january nth, last, stCol az Fo5,"'i,ding Inc
the Treasury cash balance, @SNCIuur1te @ r ooid
current liabilities, but including the 80 So
reserve and subsidiary anu llil.GG tbn1
Was $S3, ,96l, ,402. lie alludeS 70 ~, 80 I'm,
- 20 evUenditures over receipts, III
pOssibility of procuring eold loi lS'V' - v
without resOrung TO the lssue ni'u ,rJrr
OF bonds and the consequent lss ue ,e,,. nnrt
the resumption act, OF SJ,'VJgvyV ., =. ,. \ 80
bcuds ON the 6th Of March, 1891 lie SHOWS
that the free gold In me co Iea5Ir e,,bicS
amounted o. the sum OF Slyrt1oSV-' 49,
US The highest point that had pe'i
w. ,saash'I since March 6, 1893, The lowest
r,oint reached by the reserve since '.e
resumption OF specie payments ""a "a,',. 80!
August z. 1894. when, Mr.. CaiIsie say. e.
t'HS reason of Withdrawals in the re-
ds1ntion of notes, II was reduced 10
SJ2l9,5OO.'
ANOTHER ISSUE NECESSARY.
After that date L was Slowly G IIpiSiii pIoin
i5hed by voluntary exchanges yl Eolu Ca,,d
Tor limited States notes by banks aI1
~, small receipts of gold in payment %
~ si'i'''- 80, the Government, until the l4th
dav of November. 1884 when II ieatnrn tl,i
the sum Of S6l,S!33,4., heltpe"ffe ere. ffeeijnF OF
+'Ui,Tc ,ineasiness, indicated by the PH,
sentation OF notes for redeIhPtloH Ia a.
by individuals and INSTITUTIONS mUr
String 10 for export Inc vast deCu,itIi' Cttrns
ri,r ~ money at our financial Cenlle9'
and the prevalent depression OL D"' -
ness which had so reduced tne tn''LG oer
discount that the inducemnt 70 hrvP
f,rgs ebroad where better lhNtst tUhtil p
Could be made were very much BlS"TSI ~
than iu ordinary times. All lIlS' aaf a.,
report, taken WIN otnei i,~'oeef expenses
the revenue inadequate 10 iiltet cSr 80 me
made II necessary TO again reSoI W 10, ~ ,T
issue Of bonds. and propusGl9 ,I - in
issued November l4th arr nv res,,lts
This Immediate connection. ny 19 ICo'i of
80 tbis rroposal and the acceptance u
no simple hid for J0OW,WO, upon ule
basis of 2S7s per cent .,T@Lree are nroreeds OF
and the Secretary says. ne Pi " M ~
the saie-s5S53 500-nave nearly al! ptSn
paid into the Treasury, accoIWHs ~ '"o
terms Of the sale c,,t,,lo eavs.
Continuing. Secretary CarHSie 9a{n 9{
..This transaction justified the OPINION
mai 9l-g per cent bonds, having ie@aOi',
able time 20 run, could pioD4uE n"'
been sold at par. and certalhy Ia tins q
,,.r' conf bonds could have been dispoStu
If at on above that rate so, as, lhtIe -
Iaral authority for so doing anu uS W. M,.
carlisle SAYS. "the present state ol Oui
,r,'a,Uci,l lreislation compels an occasional
exercise " he repeats the recoHlInenu"'.'Ims m
made i'm his last annual report iHaI III
tb. interest OF the Government anu pto-
I ~ nNv,rr he conferred upon the
G.Iretarv of the Treasury 10 neSotate
loans at a lower rate interest anu LOT
shorter time than are no" "Ho"e"
rHE CONTRARY fFFfcr
The existence of such authQrilys ne
continues instead of increasing lhe PIoDa-
hiities of frequent resort 10 that means
of raising money, would nave the Coii- .,i,-
trary effect. because when IL u, IS .,,,l hmo"n IL
that the Secretary OF the Io%oui{ %tau1{{t ties
clothed with ample power anG @ @laCillue ~
to procure means for the mallIehdIlCe oI
the reserve. public confidence III III tnt
ability Of the Go{ernn,T1'' COY, ,,non If win be
much stronger than under present CIR
cumstances. Besides, the policy, OF unit
ing the Government 10 wy so iUtorast
tiQuated bonds. bearing rate OF Ihiettat
wholly Inconsistent with the cNlsuhS
state OF public credit, ana haNluS loIIScl
time TO run than is apparently ntCSSiSaS
at the date OF its issue, cannot pe JuStleu
upOn any grounds of eXpedlehcE OF PlIl-
Ciple. The only bonds which the NoNtrn-
mcnt has authority 10 issue TOT any PgI
pose, Secretary Carlisle SAYS, are ue-
scribed IN the rcfunding act OF July ~
1870. passed nearly quarter ot century
ago. and since then the credit ana re-
sources of the country have so greaul
improved that the fiscal legislation OF that
period is wholly uusuited 10 the present.
situation He hopes Congress VIII
amend the law so as TO conform 10 the
present requirements Of public credit ana
service. The Secretary says If the manda-
tory legislation which keeps the large
volume OF Government notes in Circula~
ton Notwithstanding their repeated re-
drfnptions IA coin. and also imposes upon
the Government obligation to maintain
parity OF the two metals In respect 20
their purchasing and debt-paying power
Is perpetuated. II is evident that the
Treasury must remain in "a position which
will compel it to procure and furnish gold
10 ali who demand II. whether they be our
own citizens or citizens or subjects of
other countries. At the same time II will
tanning gold except by the issue and sale
OF bonds.
THE PLAN OF RELIEF.
The situation cannot be avoided without
material changes in our laws relating to
that subject At some length Mr.. Car
iiele considers the features Of this situa-
zion In the course of which he expresses
his conviction that the interests OF the
country require such changes in legisla-
tion as will disconnect the Government
entirely from the business of issuing or
reissuing circulating notes, and thus re-
neve It's fiscal department from Deriodi-
cal demands upon its resources, which
under the existing system. must continue
10 disturb the financial and general bust
ness affairs OF the people.
The Secretary presents plan which
would relieve the Government from some
of its burdens secure safe and elastic
national and State bank currency and
result ultimately in permanent retirement
OF United states legal tender notes OF
both classes
~. - IL h.