Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1894-12-03

oOllgatlonS originally lntenutu huu ~ eoe
REDEEM ption of these obligations meant
their cancellation, the fund would be
very small. But these obligations, when
received and redeemed in gold, are not
cancelled, but are issued and may do duty
many times by way of drawing gold from
the treasury.
Thus we have an endless chain of oper-
alton, constantly depicting the treasury
gold and never near final rest. As If
this was not bad enough, we have, by q
statutory declaration that 1t is the policy
of the government, to maintain the
parity between gold and silver, aided the
force and momentum of this exhausting
process and added largely to the currency
obligations claiming the peculiar gold
redemption. Our small gold reserve la
thus subject to draw from every side.
The demands that increase our danger
also increase tho necessity of protecting
this reserve from depletion and it is
not satisfactory to know that the pro-
lection afforded is only monetary palli-
alton. 1t is perfectly and palpably plain
that the only way, under present condl-
tions, by which this reserve, when dan
gerously depleted, can be replenished is
through the issue and sale of tho bonds
of 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 to be
disposition in some quarters to deny
both the necessity and the power for the
issue of bonds at all. l cannot for
moment believe that any of our citizens
are deliberately willing that their gov.
eminent should defanlt in it's obligations
or that it's financial obligations should be
reduced to silver basis. At any rate,
should not feel that my duty was done il
omitted any effort I could make to
avert such calamity.
REVISE THE LAW OR MORE BONDS.
Az long, therefore, as no provision il
made for the final redemption or thu
putting aside of the currency obligation
now used repeatedly and constantly to
draw from the government it's gold, and
as long as no better authority for bond
issues is allowed than at present exists
such authority will be utilized whenever
and as often as it becomes necessary tt
maintain sufficient gold reserve, and il
abundant time to save the credit of oul
country and to make good the financia
declaration of our government.
Questions relating to our banks ant
currency are closely connected with the
subject Just referred to and they also
present some unsatisfactory features.
Prominent among them are
LACK OF ELASTICITY
in our currency circulation and its fire.
quent concentration in financial !center
when it is most needed in other parts o
the country. remedy for this con.li
ton can not be Immediately reached, bu
as step in the direction and as mean
of securing a more elastic currency ant
obviating other objections to the presen
arrangement of bank circulation, the sec
rotary of the treasury presents his repor
of scheme modifying the present bank
ing laws and providing for the issue o
circulating notes by state banks, free from
taxation, under certain limitations. Thu
secretary explains his plan SO plainly ant
it's advantages are developed by hin
with such remarkable clearness that an,
effort on my part to present argument
in its support would be superfluous.
shall therefore content myself with an IN
qualified Endorsement Of the secretary
proposed changes in the law and brie
and imperfect statement of their promi
nent features.
IMPORTANT FINANCIAL Reforms sUa
1t is proposed to repeal all laws pro
viding for the deposit of United State
bonds as security for circulation and t,
permit national banks to issue 2clrculat
ing notes, not exceeding in amount Z
per cent of their paid up andrunimpairet
capital, provided they deposit with tn
government as guarantee fund, il
United States legal notes, not including
| the United States treasury notes of 1891
a sum equal IN amount to 80 per cent o
the notes they desire to issue, this de
post to be maintained at all times. Blu
whenever any bank retires any part of it
circulation, proportional part of it
guayantee fund shall be returned to it.
is further proposed to permit the score
tary of the treasury to prepare and keel
on hand ready for issue in case an in
crease of bank circulation is desired
blank national bank notes for each banl
having circulation and to repeal the pro
visions of the present law, composing
limitations and restrictions upon bank
desiring to reduce VT increase their oircu
lation, thus permitting such increase o
reduction within the limit of rs per cen
of capital to be quickly made as emer
gency arises. In addition to the guaran
tee fund required, it is proposed to pro
vide safety fund for the immediate re
demption of the circulating notes o
failed banks, imposing a small annua
tax, say .one-half Of per cent upon tn
average circulation of each bank, unit
the fund amounts to per cent of the to
tai circulation outstanding. When
bank fails, its guarantee fund is to b
paid into this safety fund and its note
are to be redeemed in the first instanc,
from such safety fund. Thus augmented
any impairment of such fund caused
thereby is to be made good from the i'm
mediate available cash assets of sail
bank; and if these should be insufficient
such i'm pairment is to be made good b,
pro rata assessments among the -othe
banks, their contributions
CONSTITUTING FIRST LIEN
upon the assets of the failed bank il
favor of contributing banks.
It is quite likely that this scheme ma,
be usefully amended in some Of its de
tails, but am satisfied it furnishes a basi
for very great improvement, in on
present banking and currency system.
conclude this communication, fully ap
preciating that the responsibility for leg
islation affecting the people of the Unltet
States rests upon their representatives ii
congress, and assuring them that whethe
there be accordance with the recommen
dations have made or not, shall b.
glad to cooperate in perfecting any leg
islation that tends to the prosperity ant
welfare of our country.
| GRovER CLEVELAND.
| ExEouTIvE MANSION,
December 3, 1894.
Keep your blood pure and healthy ant
| sDS1 MT ho1 uhar ksavo Hnnlt