The record-union., 1895-11-18
GOVERNMENT FINANCES.
OUTLINE OF CLEVELAND'S NEXT
MESSAGE.
It Is Said He VIII Recommend Tina
Congress Retire Grsenbacks
From Circulation.

WASHINGTON Nov. 17.-Iti is learned
from gentleman who is close friend of
member of the Cabinet, that President
Cleveland in his annual message to Con-
gress will recommend the retirement of
greenbacks. This recommendation will
be the chief feature of the message. so far
as domestic affairs are concerned. The
President has had number of con-
ferences with Secretary Carlisle, at
Woodley, concerning this part of the
message, and it comes from excellent
sources that the financial part OF the mes
sage has been mapped out and agreed
upon.
The President will return to the attack
upon Congress for a reform of our cur
rency methods. He will say that the Ex-
ecutive has done all within his constitu-
tonal power to protect the national credit
under the clumsy system now in vogue,
and will point out what the dangers of
this system are. He will take the ground
that the difficulty is not in any sense one
OF revenue, but OF the attempt to main
tain gold reserve aud hundreds of mill
ions of notes redeemaDle In gold upon
demand at the same.
The President will call the attention of
Congress TO the fact that no other Gov
ernment IN the world attempts 10 keep
its gold store open for all the require
ments of commerce and banking, this dis
unction being left TO the United States
alone. He Will repeat his former degcrip-
tions OF the manner in which the use OF
these demand notes over and over again
the Secretary of the Treasury being by
law required TO pay them out as fas! as
they are received-forms the endless
chain" of gold depletion about which SO
much was heard a week ago.
The form of remedy agreed upon be-
tween the President and Secretary Carl
isle, and TO be set forth in the message. is
very simple. 1t consists OF a recon-
mendation that the statute of 1878 requir-
ing the Secretary OF the Treasury to re-
issue L nited States notes as soon as they
are paid into the Treasury be re-
pealed, and that he be given authority
10 retire them from circulation. Also.
that the Secretary be authorized to eX-
change tor the green backs at any time q
new issue of Government bonds, to run
at the low rate of interest.
1t is the belief Of the President and Sec
retary that the entire outstanding issue
OF green backs would be quickly pre-
SenIed at the treasury counters by the
banks of the country In exchange for
these bonds. and that the bonds would
soon be deposited as basis OF an increased
circulation OF national bank notes. This
recon- tllcEQELlOil lS liAub pOH tIlb LuSOIV
| that the national bank circulation Is suf-
! ficiently elastic 10 meet the requirements
of commerce. providing all unreasonable
| obstacles 10 such circulation are removed
! by Congress.
One OF the great obstacles at the present
time is the lack OF bonds of proper char
acter tor deposit. In 1890 the national
| bank circulation ran down to $I23 600, 600,
! but has now recovered TO about SZl3, co.,
900, Leading bankers have testified that,
with an issue Of bonds adapted TO the pur-
pose, practically all OF the green backs
could be supplanted by national bank
notes-certainly large enough proper
tion OF them 10 meet the currency wants
OF the country.
The President will not prepare meas
ure Tor submission TO Congress, with an
idea of securing its adoption.
Neither President Cleveland nor Secre-
tary Carlisle has the smallest notion that
Congress will act favorabiy upon this
suggestion. They have no hope of any
legislation. AT the same time they deem
IL their duty TO put the facts before Con-
gress and the country, that the people
may have no difficulty in placing the re-
| sponsibilily for inaction where il Drop
erly belongs.
1t has been definitely decided that there
will be no issue OF bonds until after the
meeting of Congress, unless, of course,
some sudden outrush of gold should
make earlier action absolutely necessary.