New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-12-22


gold Withdrawals during the last few months. and
large accession TO our stock of gold from abroad
during the same time. because there is no sufficient
reason TO believe that this condition OF affairs Will
be permanent If our existing system Is maintained.
No system OF coinage that can be devised will fur
nish the Government with either gold or silver I'M
less IL pays for II with means already collected py
taxation: or by contracting an Indebtedness to be
paid by the people in the future. ,,o .o,,rao,,
and cancellation Of United States notes OF both
classes under such reasonable limitations and re-
strctlons as to time and methods as congress
may see proper 10 prescribe, or as prudent sec
teary of the Treasury would adopt in the exercise
of his official discretion. would not result either
permanently or temporarily III an injurious con-
No government. however despotic. can prescribe
the exact amount of currency its people shall use
tempt TO regulate the subject by arbitrary rules
in the form OF legislation or otherwise Is a de-
parture from trae economic principles. The peo-
pie if left free TO conduct their business affairs In
their own way, will always decide for themselves
how much money they need. and unless prevented
by artificial distractions the necessary amount
S home ne n hc exehanSes abroad The
volume of business transacted determines the
ever the volume of business demands an addiiional
supply or an extension OF credit the demand VIII
no, Interfere to prevent il, As rapidly as our
notes are redeemed and cancelled gold. or cur
circulation interests of the country require it,
RELYING ON NATURAL LAWS
With liberal commercial policy promoting the
profitable Introduction Of our large surplus prod
ucts into the markets Of other countries. and
sound currency system promising safe investment
for foreign capita! in our domestic Industries. we
may confidently rely upon the operation of the
natural laws OF trade and finance FOR an anunHah'
suppl; of good money TO transact all of the bus.
ness of the people and fully develop the great re-
sources AZ our command. As soon az the resump,
ton OF specie payment haa oec1 haS ccaseS co
began TO flow into this country IN lars" amounts,
GAIN from from imports alone was M7ss but in adj
dtion TO this our AVAILABLE stock OF TINS metal wa
and by the renewed of a great part of the coin
previously boarded by our people on account OF us
rency. For series of years there had been de-
hciemr crops in Europe and the sale OF our grain
and provisions in foreign markets created "A very
large excess Of exports of merchandise over iil'
Of <5o5 lSsGi2 the largest that ever existed in
year since Except during the current calendar year
ls9c In eleven months the excess OF EXPORTS OF mer-
Snonn DC ,a1 ~ o ~ or nearly six million
do fk more o' ;ha1 the Hishcs amount for any pre-
vlous period of twelve months II Is scarct.y POI
International trade during the few years as 10
prevent large annual balance in our favor. AMI II
our currency system shall he placed upon a sound
bas experience and reasbn aHG 5ns ~ eo 1nf m ro
be sent here to pay f9r our exported p9oanc,s ana
upon our existing stock vii, cease and our own pro-
ducton. amounting to not iess man $4,000, pc,
in my last annual report it was recommended that
from time time TO issue bonds payable in gold
hearing interest rate not exceeding per cenum
pSr u sha oda o ned States notes and
Treasury notes UPON such terms as might be
advaniaseous 10 tie Government or to sell the bonds
abroad for gold whenever in his Judgment u might be
making rederpiions OF outstanding notes. The
terms in which this recommendation was made and
the suggestion submitted in supper OF II showed
that it did not contemplate the retirement; Of all the
outstanding notes az ore time but that me process
should bc so conducted as TO avoid any daneer OF
any improper contraction Of the currency. Believing
that this plan OF redeem!nG notes and az tho same
time TO substitute an absolutely SOUND currency IN
place of them promises he most certain means OF &C.
time | adhere TO the views then expressed. nut the
object to be attained * so essential to the future
my judgment. to be defeated or abandoned simply
methods Of securing il.
AUTHORITY TO ISSUE BONDS.
While an act comforting express and plcnary au-
thority upon the Secretary to Issue bonds and use
them or the proceeds Of sale for the purpose
of retiring a certain amount Of notes each year
would. in my opinion. be the most efectual and
economical to accomplish that object, ii may
be that so radical measure would not receive the
of Congress in The present state Of the pub.
lie mind the subject, and, il so, II Is submitted
that at the very least. authority should be given
10 retire and cancel a maximum amount OF notes
each year when voluntarily presented by the hold
ers and redeemed in gold: and If the maximum
and cancelled in any year by redcmptions out Of
the gold the Secretary of the Treasury
should be clothed with authority TO apply for that
purpose any surplus funds in the Treasury and. in
addition. II necessary to Issue bonds OF the char
comply with the provisions of the law. The adOp-
ton of such a policy would give immediate assn
period TO a safe and elastic currency system, and
would remove much of the doubt and uncertainty
mind and emba rrassed the business OF the people
and Tie operations of the Government. No sudden
~ he ix..s
result from the execution Of such plan. because
the rcdemptions would he made from time TO time
and held In the Treasury. except In cases where 1t
might become necessary to issue ana sen ponds II.
amount required authorized and in all such
cases contraction could be easily prevented by sell
ceeds TO our domestic stock of money
remsnt Of p rnted States notes and treasury
notes it will fail to afford complete protection TO
future unless it Includes PROV ion relieving the
Treasury from the obligation to redeem National
Iefaced' and the notes Of failed banks or requires
these instiutions to keep their per cent redemp-
withdrawal Of bonds when circulation is to be sur
rendered reduced Prior 10 the act Of June 20
1874 each bank required TO redeem Its circu-
latng at its own counter. and also TO select.
with the aG9rG Of the S0n9r Gf dr ne in
some one Of the cities named In the act at which
not authorized or required even TO redeem worn
mutilated defaced notes; but since the passage
of that act each National DanitlhR aSsOcldlon mas
been required to keep on deposit In the Treasury
Of the United States IN lawful money Of the
circulation, he held in trust for the redemption
Of rs notes and when such notes. assorted or I'M
assorted are presented In sums Of $1,000 or any
rnultiulc of that sum the Treasurer Is required 10
redeem them in United States notes In view OF
,bnee provisions Of the existing law. IL Is clear
10, IN case the United States notes should he
Withdrawn from circulation some other method
". radeeming the National bank currency must be
odnntcJ and in my opinion, the obligation should
hc ,mnosed directly upon the banks themselves. or
sl IN
fund on deposit with the Treasurer in gold coin.
AIR Carlisle rcnews his recommendations for