The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1896-12-26
.cARLISLE'S ANNUAL REPORT
Government Must Go Out Of the
Banking Business.
Should Not BE Deluded by a sus-
pension of Gold Withdrawals
So Long as Present Com
ditions Remain.

Washington, Dec. 22.-The annual re-
port of the secretary of the treasury,
which was transmitted to congress to-
day, deals extensively and in detail
with the financial situation. Mr.. Car
Isle summarizes the condition of the
treasury, and after reviewing his for
ler recommended lions for early and eff
,ective legislation to provide for the re-
tirement of treasury notes, goes on to
say:
The issue and redemption of circulat-
ng notes is not a proper function of the
treasury department, or of any other
department of the government. While
the government has power to borrow
money. it is not its duty to issue public
Obligations merely for the purpose Of
providing a paper currency for the use
n the transaction of business, nor has
t the constitutional power, in my opin-
.on, to make Its promises legal tender
N the payment of private debts. Such
a policy, even If sanctioned by the con-
stttution. instead of imparting strength
md stability to our currency system,
seriously ~endaneers it by the introduce
lion of political and partisan considera-
tons into the management of u subject
'AA'A " w NSuidleu eI'lltlS
oy the business interests Oh the people
and by the laws of trada and the prin-
.iples which control honest commercial
intercourse.
The secretary refers T., the peril in
which the entire financial system has
been placed by The constant agitation
II the currency question, and adds:
There is but one absolutely ceria.n
ktlC tl pspy,, W I1,i,- E,,Ji..,+- ,,,N 49,,
serous question from our party politics
and that is to retire an! cancel the
notes.
w must not be dei,riri int, Che
Feeling of security by the fact that
there has been a suspension or the Gold
Withdrawals during the past few
months and a large accession TO our
stock of gold from abroad during the
same time.
with a liberal commercial lolicy.
promoting the profitable introduction
Of our large surplus products into the
markets OF other countries ard a sound
currency system, promising safe invest
nents for foreign capital in our domes-
tic industries, we may confidently rely
apon the natural laws of trade and fl
nance for an abundant supply of good
money to transact all the business of
the people and fully develop the great
resources at our command
The secretary holds that without Q.
reformation of our currency, we cannot
safely rely upon permanent accessions
10 our stock of gold from abroad in set
Element of trade balances in our favor.
He refers to his recommendation of
asst year hat the secretary of the trea-
| - ~ l,n - ,ttr,.,.-1 - H.. 49, -.
TO time, bonds payable in gold and to
exchange them for United States notes
and treasury notes. Concerning this
lie says:
The adoption of such a policy would
give immediate assurance of a purpose
to return within a reasonable period
to a safe and elastic currency system,
and would remove such of the doubt
and uncertainty which have for many
years disturbed the public mind and
embarrassed the business of the people
and the operations of the government
No sudden or large contraction of the
active currency could result from the
execution of such a plan.
Whatever plan may be finally adopt
I'd for h retirement Of United States
notes and treasury notes, it will fail
" alloIu coItlpIelt pTOlecCiDn against
the government against demands for
gold in h future, unless it includes a
provision relieving the treasury from
the obligation to redeem national bank
notes. except such as are worn, mutt
lated, or menaced. and the notes of
tailed banks, or requires these institu-
lions to keep their 8 per cent redemption
fund in gold and to deposit gold coin
for the withdrawal of bonds when cir
culation is to be surrendered or re-
iuceded.''
Taking up the question of revenue,
The secretary says.
""'t Unless our annual receipts are
Increased by improved business condi-
tons, or our nnual expenditures re-
duced, a time will arrive when provi-
sion must be made for additional reve-
lue; and If the expenditures of the gov
eminent shall be increased by the acts
Of congress, the necessity for such a
measure will arise easlier than the pre-
sent situation seems to indicate. In
view of this possible contingency, it will
not be inappropriate to submit a few
uggestions concerning the general pol
.cy to be adopted in making the provi-
sion to meet future necessities of the
government