The Mena weekly star., 1896-12-23

the retirement of United States notes ana treasury notes, 1t will fail to afford complete protection to the government against demands for gold in the future unless it includes n nro- vision relieving the treasury from the obliga- ton to redeem national bank notes. excent s,lch as are torn, mutliated or menaced and the notes filed by banks, to require the institutions to keep their live per cent redemption fund in gold and to deposit gold coin for the with orawal of bonds when circulation is to ba sur rendered or reduced.
 In view of the provisions of the existing law. IL IS clear that in case the United States notes should be withdrawn from circulation soma other method of redeeming the national bank currency must be adopted, and in my opinion the obligation should be imposed directly upon the banks themselves, or they should be re- qured to keep the redemption fund on deposit with the treasurer in gold coin
 Nr. Carlisle renews his recomme nda- tions for such amendments to the na- tlouai banking laws as would permit the issue of circul atinr notes equal in amount to the face value of the bonds deposited and reduce the tux on notes to one-fourth of cue per cent. per an. nun, and that authority be given to establish branch banks for the transac- tion of all kinds of business now al- lowed except the issue of circulating notes. No good reason now is per celved- he says, why this limitation upon the repaired amount of capital shouid not be reduced to S25, GOO with out regard to population He again refers to and renews his suggestion that the issne of United States notes, treasury notes and national bank notes oi iower'denominations than $l0 dollars be prohibited in order to secure large and more rermanent use of silver coin and certificates.
 Taking up the question of revenue anu quoting figures and the yearly de- hciency the secretary says:
 But unless our annual receipts are increased by Improved business conditions or cur annual expenditures are reduced, time will arrive when provision must be made for additional revenue. and if the expenditures of the govern peht shall be increased by acts of congress the necessity for such measure will arise earlier than the present situation seems to indicate.
 So long as the income of tho government from customs and internal taxes exceed its expenditures the fact that protective duties were destructive of revenue. although clearly apparent to all who observed the practical operation of the system, did not attract the aetentlon or the puDllc generally, but the situation has been materially changed since aE02 and hereafter it will not be possible to sacrifice revenue to protection without seriously embarrassing the fiscal affairs of the government by depriv- ing 1t of an income sufficient to defray it's nec- essary expenditures. If the usual proportion of this income is hereafter to be derived from taxes on imported goods the protective theory must be abandoned as the basis of our legisla- ton upon the subject and well considered and consistent revenue system must be sub stltuted in its place. and in my opinion this can be done without material injury to any trade or industry now existing in this country
 When the true principles Of taxation are recognized and applied in our fiscal legisla- tion there will be no difficulty in securing an ample revenue for the support of the govern ment in the exercise of ali it's proper functions, without sUbjecting our industries to injurious and unnecessary burdens or our trade to in- furious and unnecessary restrictions.