The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-12-22

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tenn and Says 1t Is Impracticable No
Matter What People Want.
Washington. December 21.-The an
nual report of the Secretary of the Treas
ury was transmitted to Congress today.
After reviewing his former reoommen-
dations for early legislation to provide
for the retirement of the treasury notes,
Mr. Carlisle says: The maintenance Oh
policy which necessarily imposes upon
the government the burden OF FURNISH
ing gold at the public expense 70 Gil VINO
may demand 1t for use, or boarding at
home. or for export to other countries,
cannot be justified upon any ground Tor
expedisnoy or sound financial principles.
The secretary refers to the peril In
which the entire financial system has
been placed by the constant agitation
of the currency question and adds:
''Thers is absolutely but one way to
remove this delicate and dangerous ques-
tion from our party politics, and that is
to retire and cancel the notes. All at
tempt to hoard them permanently by the
government must fail, for the obvious
reason that our people will not consent
to be taxed merely for the purpose OF AZ
cumulating and holding large and
useless surplus in the treasury. Besides
the notes must be withdrawn from o1r-
oulation in order to be ho8rded, and
when withdrawn from circulation, it
would be far more advantageous to the
public to cancel them than to keep them
on baud as a constant temptation to
indulge in unnecessary and extra expen-
ditures.
he is thoroughly convinced, he says.
that the retirement aud cancellation OF
the Cnitea States notes OF both classes,
under such reasonable limitations and
restrictions ns to the time and methods
as Congerss may see proper to prescribe,
or as q prudent secretary OF the treasury
would adopt i'll the exercise OF his official
discretion. ana would not result
either perma nently or temporarily, in an
injurious contraction of the currency.
He says: "With liberal commercial
policy prompting the profitable intro
duction of our large surplus products in
to the markets of other countries and
sound currency system promising safe
investment for foreign capital IN QUE
domestic industries, we may confidently
rely upon the operation OF the natural
laws of trade and finance for an abHn-
danE supply Of good money to TRANSACT
all of the business of the people, fully
develop the great resources at our COM
mand."
The secretary holds that without re-
formation of our currency, We can not
safely rely upon permanent accessions
to our stock of gold from abroad in the
settlement of trade balances in our favor.
He refers to his recommendation OF last
year, that the Secretary of the Treasury
be authorized to issue from time to
time, bonds payable in gold and to ex-
change them for United States notes and
treasury notes.
Whatever plan may be finally adopted
for the retirement Of United States notes
and treasury notes, it will fail to afford
complete protection to the government
against the demands for gold in the fu-
ture, unless 1t includes provision for
relieving the treasury from the obliga-
tion to redeem national bank notes, ex-
can't suoh as are worn, mutilRted or de-
faced and the notes of failed banks or
REQUIRES these institutions to keep their
five per cent redemption fund in gold
an( TO deposit gold coin for the with
drawal of bonds Wien circulation Is to
be surrendered or reduced.
In view of the existing law, the eecre-
tary says, it Is clear in case the United
States notes sh uld be Withdrawn from
circulation that some other method of re-
deeining the national bank currency
must be adopted and in his opinion, the
obligation should be imposed directly
upon tho banks themselves, or they
should be required to Keep the redemp-
tion fund oa deposit with the treas urer
in gold coin. Mr.. Carlisle reviews bis
recommendation for such amendment to
the national banking laws as would per-
NIT an issue Of circulating notes equal