Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1895-12-21

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IT our legal-tender notes were retired there
Is abundant reason to believe that very largo
! amount OF gold which has been excludGd from
| the country by the excessive use Of SILVER and
paper In our circulation would promptly return
10 take Its place In our currency and constitute
Part q our q
tender notes would not necessarily produce any
contraction Of the circulation and II such a re-
suit should follow and continue for any consid-
the fact that the volume OF currency preyf-
ously existing was not needed in the business
Of the people"
terdiscussing at considerable length
the disturbance to the currency caused
by the silver-purchasing act, Secretary
Carlisle continues as follows:
"The great loss Of revenue, instead Of being
the cause OF our financial difficulties Is one OF
the effects produced by defective currency
system and a failure to recognize this important
| iact VIII lead us far astray In our search for an
adequate remedy. 1t Is true that the tarin
act OF 1880, which remained in force until
the close Of the fiscal year 1894, had
greatly reduced the revenue derived from Gus
toms, and that the expenditures Of the govern
ment were increased from S3f8. .040, ,7l0.66 dur
ing the fiscal year 1890 to 1888 AT 054 40 during
the fiscal year 1898; still 1t is not probable that
there would have been any considerable excess
OF expenditures over receipts If the business
OF the people had not been interrupted by the
olstnroances growing out Of the unsatisfactory
condition OF our currency.
mo surplus revenue. however large, could
extricate us from our present difficulties. or
give assurance OF safety In the future, unless it
should be ;e required to be paid in gold under
system winch would exempt the government
from the obligation to furnish the gold when
demanded to be used in making the payments;
and 1t is scarcely necessary to suggest that
such system is impossible as long as the
United States notes and treasury notes
are Kept IN circulation and redeema-
Die in gold by the government itself
on on presentation: Owing to this pecu-
OF the treasury to hoard United States and
treasury notes is limited to o certain amcunt-
which can not be definitely determined in ad-
vance-and If it should after that amount has
Deeh received refuse to pay these notes on
making disbursements ut the places where our
customs are collected the immediate result
would be that nearly all payments to the gov
ernment would be made in silver certificates,
whlcn II Is bound to take, but can compel no
one else to take. This result has been avoided
heretofore only by paying out these.
Notwithstanding all the efforts OF the de-
ossi partment 70 protect the treasury against ex-
quently happened that they constituted more
than W per cent OF all the payments Of customs
dues at New York, where more than two-thirds
ofathe total collections are made; but II the
United States legal-tender paper should be re-
tlrcd and proper currency system adopted,
gold and gold certificates, and bank notes re-
dieemaoie In gold will take their place in tho
circulation, and the government will have no
further trouble In regard to the kind OF money
used IN either receipts or payments.
But even II this difficulty should be obyi-
n N n ttars stt,t 60
people sufficient In amount to enable the treas
usy TO take up and permanently hoard all the
!egal-tender paper, now amounting to about
t4so'Wo0o0 would be the most remarkable
an attempt to secure by taxation within any
reasonable period sum sufficient for their re-
demptlon and cancellation rs they may be re-
celyed into the treasury. although not quite so
lnpractcable as the other, would Just as GER
talnly fall to accomplish the object intended"
The remedy which Secretary Car
Isle proposes for the financial ills of
which he speaks is thus set forth:
There Is but one safe and efrectual way to
protect our treasury against these demands,
and that Is to retire and cancel the notes which
constitute the only means through which the
wlthdrawalS can be made.
fThis can be most effectually and ecomically
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 per cent. per annum and having a
long time to run, ana to exchange the bonds for
United States notes and treasury notes. upon
sucn terms Us may be most advantageous to
the government, or sell them abroad for gold
whenever, IN his judgment II Is advisable to
DO SO, and use the gold thus obtained in re-
deeming the outstanding hotes. In order to
further facilities the substitution OF other cur
rency for the retirement Of legal-tender notes,
the national banks should be authorized TO
issue notes equal In amount to the
face value of bonds deposited to secure
them and the tax on their Calculations
should be reduced to one-fourth Of one per
centum per u a um. When the national bank
Ing system was established the bonds of the
United states were selling below par in the
market and there was, consequently. sum-
cfent reason for limiting the amount Of the cir
culating notes authorized to be issued to 90 per
centum OF the face values OF the securities de-
posted, but the reason has long since ceased
to exist and the limitation should be removed:
"As part OF the plan for the retirement and
cancellation OF the legal-tender notes. the
treasury should be relieved from responsibility
cept worn, mutilated and defaced notes and
I he notes Of failed banks, and each association
should be required to redeem its circulation at
Its own ONCE and at agencies To be designated
case prior to the passage OF the act OF June 20,
1874; or, II this is not considered inexpedient,
and the present system OF current redemption
by the treasury Is continued. the secretary
DO fixed in the law, to require the banks to
keep their five per cent. redemption fund In
gold coin, and to deposit gold coin for the with
drawal OF bonds whenever circulation is to be
surrendered or reduced.
Whatever objections to q national banking
system may have heretofore existed or may
still exist among our people, upon economic
or other grounds. the fact must be recognized
that it has been so long established. and not
It's admitted defects, has served
such useful purpose OF furnishing con-
venlent form OF currency Of uniform value
throughout the country, that any attempt ct
this time to abolish it, or materially
lbridge the franchise 1t the institutions or
ganized under it, ,xorid mo- criv be unsuccess-
IMIl, M but would provoke iinaprsas agitation
when the precorious coeflitionpf our fiscal nf.
fairs demand reposen
After rec mmending the eslabiish-
ment of branch national banks,ps sue
yested in the presidents nee saRe. Se.-.
retary Carlisle closed his report "a fol- !,
lows:
1t Is not probable that any plan for the per-
nanent retirement OF the United States notos
md treasury notes will be adopted that will
,ot require considerable time for its complete
execution. and therefore respectfully urke
ipon congress the propriety Of prohibiting any
uture issues OF such notes, or Of ma
onal Iona 1 bank S.,,ns notes q less denominAtioas
recommendation have been fully stated in
ormer reports and need not be repeated here.
such policy would make room In the circula-
Ion for silver coins and silver certificates OF
mall denominations, thus incre1 binG their uso
.mong the people in the TRANSACTION of their
laily business, and preventing their frequent
eturn to and accumulation In tho treas
Try The large silver. certificates
low outstanding could be retired and can
'elled when received and smaller one substi-
uted for them. 80 thnt there would BE- 40 d.
nunation OF the amount OF SMALL currency In
circulation and the ultimate result would - an
increased use OF our present stock OF SilvAr II