The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-17
r. J. REYNOLDS TOBACCO CO.,
WINSTON, N. C.

department to protect the treasury against
excessive receipts of these certificates,
it has frequently happened that they con
sttuted more than so per cent. of all
the payments of customs dues at New
DIRK, where more than two-thirds of the
total collections are made. but If the
United States legal tender paper should
be retired and a proper currency system
adopted, gold, and gold certificates apd
bank notes, redeemable in gold, will take
their place in the circulation and the gov
eminent Will have no further trouble in
regard to the kind of money used in these
payments
But even if this difficulty could be cb-
Waited an attempt to impose taxation ON
our people sufficient in amount to enable
the treasury to take uf and permanently
hoard, all the legal tender paper, now
amounting to about SiS5,000000, would be
the most remarkable financial experiment
of modern times. while an attempt to So
cure by taxation within any reasonable
period. a sum sufficient for their redemp-
tion, and cancellations as they may be re-
ceived into the treasury, although not
quite so impracticable as the other. would
just as certainly failtn accomplish the OBJ
ject intended"
tary Carlisle says: There is but one safe
and efectual way to protect our treasury
against these demands, and that is to re-
tire and cancel the notes which constitute
the only means through which the with
drawals can be made. Many partial and
temporary remedies may be suggested and
ufSeu. with more or less DlduSlbliltY. nut
this is the only one that will certainly re-
move the real cause of our troubles, and
give assurance of permanent protection
against their recurrence in the future.
This can be most successfully and eco
nomically accomplished by authorizing
the Secretary of the Treasury to issue
from time to time bonds payable in gold,
bearing interest at a rate not exceeding 3
per cent, per annum, and having a long
time to run, and to exchange the bonds
! for United States notes and treasury notes
~ Vznz sa4r Is faas aftrf
advantageous 10 the government,
or to. sell them abroad
for gold whenever, in his judgment, it is
advisable to do so and use the gold thus
obtained in redeeming the outstanding
notes. In order to further facilitate the
substitution of other currency for the re-
tirCmeht OF legal tender notes, the ma
tional banks should be authorized to issue
notes equal in amount to the face value
of herds deposited to secure them, and
the tax Oh their circulation should be re-
daced tic one-fourth of one per cent per
annum. When the national banking sAS-
tenn was established, the bonds Of the
United States were selling below par in
the market and there was consequently,
a sufficient reason for limiting the amount
of the circulating notes authorized TO be
issued tc 80 per cent. of the face value
of the securities deposited but this Ies-
son has long since cease to exist and
the limitation should be removed.
AS part of the plan for the retire
ment and cancellation of the legal tender
notes, the treasury should be relieved
| from responsibility for the redenlDtf IN 1 (
national bank notes, except worn, mutilat-
ed and dcfaced notes and the notes of
| failed banks and each association SHOULD
| be required to redeem its circulation at
| its own office and at agencies to be dosig-
/ mated 10y the controller of the currency.
/ as was the case prior to the passage Of
1 act of June 20. 1874, or If this is not con
| sidered eXpedient, and the present system
! of cdrrercy redemption by the treasury
! is continued, the secretary should have
/ the power, after future date, to BE fixed
in the law, to require the banks to keep
/ their per cent. redemption fund
/ gold coin for the withdrawal
OF bonds whenever circulation is to be
| permanently surrendered or reduced
/ Whatever objections to a national bank
| ing system may have heretofore existed.
| or may still exist among our people,
/ upon economic or other grounds Tho
| fact must be recognized that IL has been
/ so long established, and notwithstand-
| ing its admitted defects, has served such
| a useful purpose in furnishing conven-
| lent form of currency of uniform value
| throughout the country, that an attempt
| at this time to abolish it, or materially
! abridge the franchises of the institutions
4 organized under it, would not only he
/ unsuccessful, but would provoke infu-
| rious agitation when the precarious con-
/ confidence"
The secretary suggests an amendment
| of the national banking law permitting
| national banks to establish branches for
/ transacting a discount and deposit bust
ness. and closes his report as follows:
| 1T is not probable that any plan for
| the permanent retirement of the United
| States mates and treasury notes will
| be adopted that will not require consid-
cradle time for its complete execution,
and / therefore respectfully urge upon
| congress the propriety of prohibiting
any future issues of such notes, or Of
/ national bank notes of less denomlna-
| lions than $40. The reasons for this rec
/ concentration have been fully stated in
/ former reports and need not be repeated
/ here. Such 2 policy would make room
| in the circulation for silver coins and
4 silver certificates of small denominations
/ thus increasing their. use among the peo-
/ pie in the transaction of their daily
! business. and preventing their frequent
/ return to, and accumulation in the treas
/ ury
1.-THE large silver certificates now out
/ standing could be retired and cancelled
/ when received and smaller ones substi-
/ tuted for them, so that there would be
4 no diminution of the amount of small
4 currency in circulation, and the ulti-
/ mate result would be an increased use
4 of our present stock Of silver in The
/ form of the subsidiary coin or stand
| ard dollars and certificates.