The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-05


of the government from all sources of
the fiscal year ended June 80, 1894, were
1912, sos, ass, and the expenditures $442,-
605,75S, which shows a deficit of $780,
sos, 300
AS compared with the fiscal year 1898,
the receipts for 1894 fall off SIS, 914, 063.
During the year there was a decrease
of $15,952, GA in the ordinary expendi-
lures OF the government. The revenues
for the current fiscal year as thus esti-
mated upon the basis of existing laws
(eents omitted: From customs, $780,
100000; from internal revenues, S165, 0OO,-
( GOO; from miscellaneous sources, SIS,
100000; from postal service. $S4, 427, 74S
Total estimated revenues, $424, 427, 74S.
h Currency Reform.
= The most important feature of Mr.
fCarlisle's report is his discussion of the
subject of currency reform in the course
of which the administrators plans of a
new system of currency are set forth
in detail.
In my last annual report 1 called
attention TO the unsatisfactory condi-
ton of our financial leg Station, especial
ly as to the issue and redemption of
circulating notes by the government
the treasury, under existing laws, to
make prompt and adequate provisions
for the support of the public credit
The experience of the past year has
confirmed and strengthened the opinions
then expressed and I, therefore, re-
spectfully but most earnestly urge upon
Congress the necessity for remedial leg
, 5slation during its present session. The
Swell-known defects in our financial sys-
TEN and the serious nature of the evils
threatened by them, have done more
during the last two years to impair the
credit of the government and the people
OF the United States at home and
abroad, and to check our Industrial and
commercial progress than all other
things combined, and our first and
( plainest duty is to provide, if possible,
Asone effective method for the prompt
tdnd permanent relief of the country
H-om the consequences of the present
pnwise policy. A brief statement of the
Impractical and unavoidable results of
PIE existing legislation will demonstrate
Ats injurious effects upon our financial
affairs more clearly than any argument
that could be submitted"
The secretary then reviews the cir
cumstanceS leading up to the first fifty
million issue of bonds as a means of
replenishing the gold reserve, yielding
$5S660,917, and increasing the free gold
est point reached by the reserve since
the resumption Of specific payment was
on the seventh day of August 1894
when by reason of withdra walls. in the
redemption of notes, it was reduced to
$50, 1S9, 500. After that it was slowly re-
plenished by voluntary exchanges of
gold coin for United States notes by the
banks and by small receipts of gold in
the payment of duties to the govern
ment until the I4th of November, 1894,
when II reached the sum of SCI, SIS, 374.
In the meantime, however, the frequent
presentation Of notes for redemption in
gold by individuals and institutions not
desiring it for export, clearly indicated
the existence of a feeling of uneaSiness
in the public mind, while foreign eX-
change was almost constantly a. or
near a rate which made it more profit
bic to export gold than to purchase
bills and consequently Withdrawals for
shipment were daily threatened. In adj
dition to these causes of anxiety, the
vast accumulation of money at our
financial centres and the general de-
preston in business which prevailed in
this country, so reduced the rates of
discount that the inducement to keep
funds abroad where better investments
could be made were much greater in
ordinary times. and this together with
the other facts stated, made il highly
which appeared necessary to insure the
safety of our financial position.
His Plan Outlined.
I have prepared the outlines Of a
plan which in my opinion viii relieve
the government, to q great extent,
from the burdens now imposed upon it,
secure within a reasonable time a safe
aud elastic national and state bank
currency and result ultimately in the
permanent retirement of United States
legal tender notes of both classes. 1t
is. in brief, as follows:
First-Repeal all laws requiring or
authorizing the deposit of United
States bonds as security for circulation
Second-Permit national banks to
issue notes TO an amount not exceed
ing 80 per cent of their paid-up and
unimpaired capital, but require each
bank before receiving notes 20 deposit
a guarantee fund consisting of United
States legal tender notes, including ]
treasury notes of $780, to the amount of
80 per cenrum upon the circulating
notes outstanding, to be maintained at
all times, and whenever a bank re-
tres its circulation in whole or in part,
its guarantee funds are TO be returned
TO 1t in proportion TO the amount of
the notes to be retired.
Third-Retaia the provision of the ,
liable and provide that the circulating {
notes shall constitute a first lien upon
all the assets of the bank.
Fourth-Impose a tax of one-half of ,
] per centum Per annum, payable semi 7
annually, upon the average amount OF c
notes in circulation to defray the ex- c
penses of printing notes, official SUPER
vision, cancellation, etc.
Fifth-No national bank notes to be :
of less denomination than ten dollars, !
aHd/ all notes of the same denomination
toy be uniform in design; but banks de- !
Sling to redeem their notes in gold !
my hove them made payable in that !
com The secretary Of the treasury to :
nave authority TO prepare and keep G
on hand ready for issue upon applica-
ton a reserve Of 0blanlD national bank /
notes, notes Tor each banking associa- !
ticn having circulation. Y
SiXth-Requil'e each national bank =
ing association to redeem its notes at (
It's own office or at its own official
agencies to be designated by it.
Seventh-To provide a safety fund
for the immediate redemption of the e
circulating notes Of failed banks. i'm d
pose tax of Cblanl) per centum Der $
annum. upon the average circulation u
Of each bank until the fund amounts $
70 per cent of the total circulation
outstanding. Require each new bank
and each bank taking out additional D
circulation to deposit its proper proper S
ton of this fund before receiving notes. a
When q bark fails its guarantee fund r.
held on DEPOSIT to be paid ipto the "