Warren sheaf., 1896-12-10
Depression Not Due to the Law.

receipts and expenditures Of liftle more nre
than SIS, .000 This. however. was not
unexpected.
Depression Not Due to the Law.
The situation was such in DECEMBER.
seven months before the close Of the fiscal
year, that the secretary OF the treasury
foretold deficiency Of $l7,0O0 900. The rrear
In business circles, and the depression IL
all activities intervening since that time.
resulting from causes perfectly well UNDER
tariff law or its operation, seriously
checked the imports we would have other
wise received and readily account for the
Secretary and the actual deficiency. M c1 'a.; as
well as for continued deficiency Indeed.
1t must be confessed that we could hardly
the last two years for the collection Of
tariff revenue.
Believes It Will Prove Success
We cannot reasonably nope that our re-
will be sudden. but it has already set in
with promise of acceleration and continu-
ance. believe our present tariff law, it
allowed fair opportun1,ty.w VIII u in the near
bly, economical expenditures, will overcome
all deficiencies. In the meantime, no deficiI
that has occurred or may occur need excite
or disturb u.s.
Use of the Reserve Lawful.
To meet any such deficit we have in the
treas sury, in addition to gold reserve of
$l00, ,00O,0oo, a surplus OF more than $l2S,0 ,00J,~
900 applicable to the payment of the ex-
penses of the government, and which must,
unless expended for that purpose, remain
a useless hoard, or, if not extravagantly
wasted, must in any event be perverted
from the purpose of its exaction from our
people The payment, therefore, OF any de-
fciency in the revenue from this fund is
nothing more than its proper and legiti-
mate use.
Vices of Our Financial System.
The reference to the condition ana pros
poets of our revenues naturally suggests
an allusion to the weakness and vices OF
our financial methods. They have been rre-
quently pressed upon the attention of con-
gress in previous executive communities
continued liberation pointed out. Without
now repeating any of these details, Can
not refrain from again earnestly presenting
the necessity Of the prompt reform of q
system opposed to every rule. Of sound
finance and shown by experience to sbe
fraught with the gravest peril and per-
ple2ity.
The Greenback Should Go.
1 am more convinced than ever that we
can have no assured financial peace and
safety until the government currency OBJ
legations upon which gold may be de-
manded from the treasury are withdrawn
from circulation and Cancelled. This might
be done. as has been heretofore recon-
bonds bearing a low rate Of interest or-by
their redemption With the proceeds OF such
bonds.
l.
as greenbacks We're thus retired, it is
probab that the treasury notes issued in
payment of silver purchases under the act
Of 19ly A. @ n0% paa an gold cb When e
turbance. as they might from time to time
when received in the treasury by redemp-
and prudently replaced by silver coin.
Most Effective Path to Reform.
The plan of issuing bonds for the purpose
Of redemption certainly appears to be the
most effective and direct path to the
In default. Of this, however, It would be
obligations redeemable in gold, whenever
Of being reissued. This operation would
be a slow remedy, but it would improve
present conditions.
National banks should redeem their: own
circulation to the par value of bonds de-
posted as security for it's redemption. and
the tax on their circulation should be re-
duced to one-fourth of one per cent
Real Source OF Danger.
In considering projects for the retirement
OF United States notes and treasury notes
issued under the law Of 1880. ] am OF the
opinion that we have placed too much
stress upon the danger Of contracting the
currency and have calculated too little
upon the gold that would be added to on
circulation if invited to US. by better ana
safer financial methods
Must Abandon Banking Business.
The entire case may be presented by the
statement that the day OF sensible and
sound financial method will not dawn upon
us until our government abandons the
banking business and the accumulation of
funds and confines it's monetary operations
to the receipt of the money contributed by
the people for its support and to the ex-
penditure of such money for the peoples
benefit.
Hot Shot for Trusts.
Another topic in which our people right
Fl a irfG Grn m
briefly considered. l refer to the existence
OF trusts and other huge aggregauons OF
capital, the object of which is to secure ths
monopoly Of some particular branch IF
trade, Industry or commerce, and so st1ne
wholesome competition. When these are
oSb av it is sua n2oa the tgy d tna
duce prices, and thus may benefit the public.
1t must be remembered, however, that a
of the real objects Of these Organizations:
nor is their tendency necessarily in that
direction. If it occurs in a particular case,
It is only because It It aGcords S WITH me the pur.
scheme. Such occasional results fall Tar
short Of compensating the palpable evils
charged to the account of trusts and mo-
nopolies.
Laws inefficient for Their Control.
To the instructive belief that such is the
inevitable trend Of trusts and monOpOlies
is due the widespread and deep-seated pop
ular aversion in which they are held and
the not unreasonable insistence that.
Whatever may be their incidental econ
onic advantages, their general effect
usefulness cannot be otherwise than
injurious. Though congress has at
tempted to deal with this patter by leg
thus far have proved ineffective, not be-
cause Of any lack of disposition or attempt
to enforce them, but simply because the
courts do not reach the difficulty. Ii the
insufticfencies of existing laws can be
ren1edied by further legislation 1t should
be done.
States Should Take Effective Action.
1t should be recognized, however. that
all federal legislation on this subject may
fall short of its purpose because Of inherent
character of our governmental sysIena.