The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1894-12-12

the government until the l4th day OF
November, 1894, when it reached the
sum of $6l 1873, ,374.
Reference is here made by Mr.. Car
Isle to the feeling Of public uneasiness
indicated by the presentation of notes
for redemption in gold by individuals
and institutions not desiring it for ex-
port, the vast accumulation of money
at our financial centres, and the preva-
lent depression of business which had
50 reduced rates of discount, that the
inducements to keep funds abroad
where better investments could be
made, were much greater than in ordi-
nary. times. All this taken with other
facts, including the revenue inadequate
to meet expenses, made it necessary to
again resort to an issue of bonds and
the proposals therefor were issued Nov.
IA. The result of this proposal and the
acceptance Of single bid for $50, ,000, 600
upon q basis of 2.S7S per cent, are men
toned, and the Secretary says:
''Ihe proceeds of the sale, SIS, ,538 500
have nearly all been paid into the
Treasury, according to the terms of
SALE" Continuing Secretary Carlisle
says: "This transaction justified the
opinion that two and one-half per cent.
bonds, having reasonable time to run,
could probably have been sold at par,
and certainly that three per cent.
bond could have been disposed of at or
above that rate" So. as there is legal
authority for so doing. and as Mr.. Car
Isle says, 1.-THE present state of cur
financial legislation compels the occa-
sional exercise" he repeats the recon-
mendations made in his last annual
report that in the interest of the
government and the people power be
conferred upon the Secretary Of the
treasury to negotiate loans at lower
rate of interest, and for a shorter time
than is now allowed"
The existence of such authority. he
continues, instead Of increasing the
probabilities Of frequent resort to that
means of raising money, would have a
contrary effect, because when it is
known that the Secretary of the Treas
ury is clothed with ample power and
facilities to provide means for the maia-
teDance of the reserve, public conf
dence in the ability Of the government
to meet promptly all demands upon it
will lbe ronch stronger than under pfeess~
ent circumstances. Besides the policy of
limiting the to government thesale ofan
antiq1ated bond bearing rate of inter-
est wholly inconsistent with existing
state Of the public credit and having a
longer time to run than is apparently
necessary at the date of its issue, can
not be justified upon any grounds of
expediency or principle"
"The only bonds whi b the govern
ment has authority to issue for any par
pose," Secretary Carlisle says. .'are de-
scribed in the refundiag act of July IA,
1870, passed nearly a quarter of a cen
tury ago, and since then the credit and
resources of the country have so great
ly improved that the fiscal legislation
of that period is wholly unsuited to the
present situation"
He hopes Congress will amend the
law so as to conform to the present re-
quirements Of public credit and ser
vices. He says: '.If the mandatory
legislation which keeps the large vol
ume of government notes in circulation,
Notwithstanding their repeated redemp-
tions in coin, also imposes upon the
governmet the obligation to maintain
the parity of the two metals in respect
to their purchasing and debt-paying
power, is perpetuated, it is evident that
the treasury must remain in position
which will compel it to procure and
furnish gold to all who demand it,
whether they be our own citizens or
subjects of other countries. At the
same time it will have no lawful or
regular means of obtaining geld except
by the issue and sale of bonds. The
situation cannot be avoided without
material changes in our laws relating to
that subject"
At some length Mr.. Carlisle consid-
ers the features Of this situation in the
course of which he expresses the con-
viction that the interests of the country
require such changes in legislation as
will disconnect the government entire
ly from the business Of issuing or re.
issuing circulating notes and thus re-
lieve its fiscal department from the
periodical demands upon its resources
which, under the existing system, must
continue to disturb the financial and
general business affairs of the people.
The Secretary presents plan which
would relieve the government from
some of it's burdens, secure safe and
elastic National and State bank cur
rency and result ultimately in the per-
manent retirement of the United States
legal tender notes of both classes. The
features of this plan include the repeal
of all laws authorizing the deposit of
United States bonds as security for Cir
culatiop; the permission to national
banks under certain requirements to
issue notes to an amount not "exceed--
ing IS per centum of the paid up capi-
tai; requiring each natianal banking
association to redeem its notes at its
own offices; providing safety fund
for the immediate redemption of the
circulating notes of failed banks; the
repeal of laws imposing restrictions
upon reduction and the increase of na-
tional bank circulation, and of laws re-
auiring banks to keep reserve on ac-
count OF deposits, exemption from
taxation, under certain provisions, cir
culating notes issued by banking cor
porations which transact ne other than
b hiking business" together with other
measures which the Secretary explains.
He gives at length his reasons for the
appeal, as his plan proposes, of all the
provisions of the existing laws which
required national banks to hold a fixed
reserve against deposits. every pru-
dently managed bank" be says; elf
left free to conduct ;te deposit and dis.
count business in the manner most ad-
vantageous to its own interests and the
interests of its patrons will undouoted
ly keep on hand reasonable reserve
to meet not only all ordinary demands
upon it, but to provide for such emer-
gencies as are liable TO occur in the
community where it is located; but it
ought not to be prohibited from using
such reserve for the only purpose it
was designed to accomplish. Among
other provisions in the Secretary's plan
is one that no bank note be of less
denomination than ten dollars.