Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-17


| that the point OF danger was about to be
reach I'd, and it will be necessary to pursue
the same policy hereafter, as long as the
| legal tender notes are in existence. Not
withstanding all the efforts Of the depart
ment 10 protect the treasury against ex-
cessive receipt of these certificates, it has
| frequently happened that they constituted
more than 50 per cent. Of all the payments
OF customs at New York, where more than
two-thirds of the total collections are
made; but il the United States legal
| tender paper should be retired and
proper currency system adopted, goid aou
silver certificates and bank notes redeem
| able in gold, will take their place In the
/ circulation, and the government Will nave
I no further trouble in regard to the klno
Of money used In either It's receipts or pay
ments.
| "But. even If this difficulty could be
obyiated, an attempt to impose taxation
upon our own people sufficient in amount
10 cnabIs the treasury to take up ana
permancntly hoard all the legal tender
paper, now amounting to about Sio5, 00o. :
| 900 would be the most remarkable
| financial experiment OF modern times
while an attempt TO secure by taxation
within any reasonable period, sufficient
sum for their redemption and cancelia-
| tIun as they may be received into the
| treasury, although not quite so impractie-
able as the other, would just as certainly
fail to accomplish the object intended.
The .dy which Secretary Carlisle
proposes for the financial ills of which he
speaks, is thus set forth:
"There is but ons safe and eifectual way
to protect our treasury against these tie
mand-. and that is to retire ana cancer
the notes which constitute the only means
through which the Withdrawals can be
made. Many partial and temporary
remedies may be suggested and urged with
more or less plausibility but this Is the
only one that will certainly remove the
real cause Of our troubles and give as
surance of permanent protection against
their recurrence In the futue.
"This can be most successfully and
economically accomplished by authorizing
The secretary Of the treasury to issue from
time to time bonds payable in gold, bear
ing interest at a rate not exceeding three
per centum per annum and having long
time to run and to exchange the bonds Tor
United States notes and treasury notes
upon such terms as may be most advan
tageous to the government,or to sell thsm
abroad for gold whenever in his Judgment
it ia advisable to do so, and use the gold
thus obtained in redeeming the outstand-
ing notes In order to further facilitate
the substitution of other currency for the
retirement of legal tender, the national
banks should be authorized to issue notes
equal in amount to the face value of bonds
| !. than and the fax of
their circulation should be reduced to one
fourth of per ccntum per annum when
the national bank system was established
the bonds of the United States were sell
ing below par in the market and there was
consequently sufficient reason for limit
ing the amount of the circulating notes
authorized to be issued to 80 per centum
of the face value of the securities deposited,
but this reason has long since ceased to
exist and the limitations should be re
moved AS a part of plan for the retire
mcnt and cancellation of legal tender
notes. the treasury should be relieved from
responsibility for the redemption Of ma
tional bank notes and the notes OF failed
banks and each association should be re-
uuircd to redeem its circulation at its
own office and at agencies to DO designated
by the comptroller of the currency, as was
the case prior to he passage of the act OF
June 90, 1871; or if this is not considered
expedicnt and the present system OF cur
rcncy redemption by the treasury is con-
tinucd, the secretary should have the
power after future date, to be fixed in
the law. to require the banks to keep their
5 per cent redemption fund In gold coin
and to deposit gold coin for the with
drawal of bonds whenever circulation is to
be permanently surrendered or reduced.
Whatever objections to the national bank
ing system may have heretofore existed or
may still exist among our people upon
economic or other grounds, the fact mast
he recognized that it has been so long
established and Notwithstanding its adj
United defect, has served such a useful
purpose in furnishing convenient form
of CURRENCY of uniform value throughout
he country, that an attempt at this time
to abolish it, would not only be unsuccess-
full but would provoke injurious litigation
when the precarioEs condition of our fiscal
affairs demand rcpose.
After recommending the establishment
of branch national banks as suggested III
the President message, Secretary Car
Isle closed his report as follows:
1t is not probable that any plan for the
permanent retirement of the United States
notes and treasury notes will be adopted
that will not require considerable time Tor
its complete execution, and | therefore
respectfully urge upon Congress the pro
pricty of prohibiting any further issues of
such notes or of national bank notes of
less denomination than SO.
The reasons for this recommendation
have been fully stated in former reports
and need not be repeated here. Such a
policy would make room in the crcula
tion for silver coins and silver certificates
of small denominations, thus increasing
their use among the people in the transac-
ton OF their daily business and prevent
ing their frequent return oand accumula-
titn in the treasury The large silver GER
tiGcates now outstanding could be retired
and cancelled when received and smaller
ONES substituted for them, SO that there
would be no diminution of the amount Of
small currency in circulation, and the
ultimate result would be an increased use
OF our present stock of silver in the form
of subsidiary COIN or standard dollars and
certificates"