The Valentine Democrat. [volume] (Valentine, Cherry Co., Neb.) 1896-1898, 1896-12-31
CARLISLE ISHOPEFUL
SECRETARY REVIEWS NATIONAL
FINANCES.
Despite a Deficit of $50, ,2O3,245 at
Present and Larger deficiencies
Probable in 1897 and 1898, He Takes.
Cheerful View.
Talks of Money.

1
The annual report of the Secretary of
| the Treasury, as transmitted TO Con-
gress, deals extensively and in detail
with the financial situation. Mr.. Carlisle
summarizes the condition of the treasury,
and after reviewing his former recon-
mendations for early and effective legis-
| lation to provide for the retirement of
| treasury notes, goes on to say:
THE maintenance of a policy which
necessarily imposes upon the government
the burden of furnishing gold at the pub
lie expense to all who may demand it for
use or boarding at home or for export
to other countries, cannot be justified up
on any ground of expediency or sound
financial principles, and even if the
periodical and frequently recurring de-
mands for gold did not weaken the foun-
dations of our entire currency SYSTEM,
thus imparing confidence and depressing
business, it would nevertheless be the
duty of all who are charged with any de-
gree of responsibility for the adoption of
proper financial methods to insist upon
the reformation of our laws or this sub
ject at the earliest possible day.
THE issue and redemption of circu-A
lating notes is not proper function of the
treasury department, or of any other de-
partment of the government. While the
government has power to borrow money,
it is not its duty to issue public Obliga-
tions merely for the purpose of providing
a paper currency for use in the transac-
ton of business, nor has it the constitu-
tional power. in my opinion, to make its.
promise legal tender in the payment of
private debts.
The Secretary refers TO the peril in
which the entire financial system has.
been placed by the constant agitation"
of the currency and favOrs the retirement
and cancellation of government notes.
He says the people will not consent to be
taxed merely for the purpose of accumu-
lating and holding a large and useless
surplus in the treasury.
He claims that no system of coinage
that can be devised will furnish the gov
ernment with either gold or silver, IN
less it pays for it with means already col
lected by taxation. or by contracting an
Indebtedness to be paid by the people N.
the future.
He goes at length into the subject of
the demand and supply of money, the
matter of imports ard exports as affecting
supplies, and the crops in Eu-
rope.
The Secretary holds that without a
of our currency we cannot
safely rely upon permanent accessions to-
our stock of gold from abroad in settle
ment 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 tine to time
bonds payable in gold and to exchange
them for United States notes and treas
ury notes, and again indorses that plan.
but adds that it may be that so radical
a measure would not receive the assent
of Congress, in the present state of the
public mind on the subject.
Mr.. Carlisle renews his recommended Z,
tions for such amendments TO the nationsr
al banking laws as would permit the issue
of circulating notes equal in amount to
the face value of the bonds deposited and.
reduce the tax on notes to one-fOurth OF
l per cent. per annum, and that author
ity be given to establish branch banks
for the transaction of all kinds of busi-
ness now allowed, except the issue of cir
culating notes. No good reason now is.
perceived, he says, why this limitation
upon the required amount Of capital
should not be reduced to $4,000, with
out regard to population. He again re-
fers to and renews his suggestion that
the issue of United States notes. treas
ury notes and national bank notes of
lower denominations than ten dollars be
prohibited in order to secure large and
more permanent use of silver coin and
certificates.