Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1895-12-25
REVENUES and FINA nee.
SECRETARY CARLIsLE's REPORT ON
THE CONDITION OF THE TREASURY.
Defects in Our Currency Laws Pointed Out
"A Remedy Suggested to Protect Our
Treasury-National Banks and Bank
ing Facilities-No Notes Less Than
$40.


ing Facilities-No Notes Less Than
$40.
The report of Hon. John G.. Car
Isle, Secretary of the Treasury, is a
long and very able document. In
discussing the currency question, the
report says
DEFECTS IN OUR CURRENCY LAWS.
"Our further progress" says Secre-
tary Carlisle, towards a complete
restoration of confidence and pros
perity is seriously impeded by the
defects in our currency laws" and he
proceeds to discuss the remedy.
IF our legal tender notes were re-
tired there is abundant reason to be-
lieye that very large amount of gold
which has been excluded from the
country by the excessive use of silver
and paper in our circulation, would
promptly return to take its place in
our currency and constitute q perma-
nent part of our medium of exchange.
The retirement and cancellation of the
legal tender notes would not necessari-
ly produce any contraction OF the cir
culation, and if such result should
follow and continue for tiny consider
able period, it would be a demonstra-
tion of the fact that the volume OF
currency previously existing was not
needed in the business of the people,
for whenever the volume is reduced
below the actual requirementso OF trade,
the deficiency will be supplied either
from abroad in exchange for our
banks at home or by both.
"No surplus revenue, however large,
could extricate us from our present
difficulties, or give assurance of safety
in the future unless 1t should be re-
quired to be paid in gold under a
system which would exempt the
Government from the obligation to
furnish the gold when demanded to be
used in making the payments; and it is
scarcely necessary to suggest that
such a system is impossible as long as
the United States and Treasury notes
are kept in circulation and are re-
deemable in gold by the Government
Itself on presentation. Owing to the
peculiar character OF our currency the
ability of the Treasury to hoard United
Estates and Treasury notes is limited
| to a certain amount-which cannot be
definitely determined in advance-and
if it should, after that amount has
been reached, refuse to pay out these
notes in making disbursements at the
places where our customs are collected,
the immediate result would be that
nearly all payments to the Govern
ment would be made in silver certifi-
Gates, which it is bound to take, but
can compel no one else to take.
''There would be stream OF these
non legal tender certificates constantly
flowing into the Treasury, and it would
receive scarcely any more United
States notes or Treasury notes as parts
of the surplus revenue, but would soon
be compelled to pay out those already
accumm ulated, or pay gold, or break
down in it's operations ut the sub
treasures. These results have been
avoided only by paying out these from
the Treasury from time to time when
ever the character of currency coming
| indicated that the point of danger was
about to be reached, and it will be
necessary to pursue the same policy
hereafter as long as the legal tender
notes are in existence.
"Notwithstandlng all the efforts OF
| thu department to protect the Treas
| ury against excessive receipts of these
certificates, it has frequently happened
that they constituted more than ~ pei
cent. of all the payments of customs
dues at New York. where more than
ltwo-thirds of the t,tal collections are
made: but if the United States legal
tender paper should be retired and q
proper currency system adopted, gold
and gold certificates, and bank notes
redeemahle 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
either it's receipts or payments. But,
even if these difficulties could be OBJ
waited an attempt to impose taxation
upon our people sufficient in amount
to enable the Treasury to take up and
permanently hoard all the legal tender
paper, now amounting to about
$485, 900, 900, would be the most re-
markable financial experiment OF
modern times, while an attempt to
secure by taxation within any reason
able period sum sufficient for Their
redemption and cancellation, as they
may be received into the Treasury, al,
though not quite SO impracticable az
the other, would just as certainly fail
to accomplish the object intended"
A REMEDY SUGGESTED.
In regard to remedial measures, he
saws: ssThere is but one safe and eff
fectual way to protect our Treasury
against these demands, and that is to
retire and cancel the notes which con-
stitute the only means through which
the Withdrawals. can be made. Many
partial and temporary remedies may
be suggested and urged with more or
less plansibility, but this is the only
one that will certainly remove the
real cause of our trouble and give
assurance of permanent protection
against their recurrence in the future.
This can be most successfully and
economically accomplished by author
izing the Secretary of the Treasury to
issue from time to time, bonds payable
in gold, bearing interest at a rate not
exceeding three per cent. per annum
and having q long time to run, and
exchange the bonds for United States
notes and Treasury notes upon such
terms as may be most advantageous
to 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 redeem
ing the outstanding notes."
NATIONAL BANKS AND BANKING FA
CILITIES.
"In order to further facilitate the
substitution of other currency for the
retirement of legal tender notes the
national banks should be authorized
to issue equal notes in amount to the
face value of the bonds deposited to
secure them, and the tax on their
circ1IatiOn shOuld he reduced tn ona