Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-12-22
CARLISLE'S REPORT.
THE SECRETARY OF THE TREA-
sURY TO CONGRESS-.
FINANCIAL PERILS.
burden or Furnishing Gold for All
who May Demand it-Note Retire
ment-Reformntlon of Currency
system-Bnnking Reform.

/ nual report of the Secretary OF the lIe'-
sury was transmitted to Congress to-day.
Mr.. Carlisle summarizes the condition OF
the Treasury. and after reviewing his
former recommendations for early ana
effective legislation to provide for the re-
tirement OF Treasury notes, goes on TO
say:
''The maintenance Of policy which
necessarily imposes upon the govern
ment the burden OF furnishing gold at the
public expense to all who may demand 1t
for use. or boarding at home, or for ex-
mort TO other countries cannot be justined
upon any ground Of expediency or sound
financial principle, and even II the periodi-
cal and frequently recurring demands TOT
gold did not weaken the foundations or
our entire currency system, thus impair
ing confidence and depressing business 1t
would. nevertheless. be the duty OF all
who are charged with any degree OF re-
sponsiblity for the adoption of proper
financial methods to insist upon the rotor
nation of our laws on this subject al
the earliest possible day
THE issue and redemption OF circulating
notes IS not a proper function OF the
I Treasury Department, or Of any other ue-
partrnent Of the government. While the
/ government has power 10 borrow money
/ n is not its duty 10 issue public oblga-
lions merely for the purpose or proVidlng
| a paper currency for use IN the tr'ilsac-
ton OF business. nor has II the constitu-
tional power. in my opinion, to make lls
/ promises Iegal-tender in the payment OF
I
/ sanctioned by the Constitution. instead OF
/ imparting strength and stability 10 our
/ currency system, seriously endangers X
Z by the introduction Of political and parti-
/ san considerations into the management
Of a subject which ought 70 be regulated
. entirely by the business interests OF the
Deople and by the laws OF trade and the
principles which control honest CONNER
cial intercourse"
The Secretary refers TO the peril in
which the entire financial system has been
placed by the constant agitation OF th'
currency question. and aGds
There Is but one absolutely certain way
TO remove This delicate and dangerous
question from our party politics, and that
rs 10 retire and cancel the notes All at
tampts 10 hoard them permanently by the
/ Government must fail for the obvious
/ reason that our people VIII not consent
TO be taxed merely for the purpose Of ac-
cumulating and holding large and use
less surplus In the Treasury. Besides the
notes must be withdrawn from circula-
ton in order TO be boarded, and wheh
withdrawn from circulation II would be
Ear moro advantageous to the public to
cancel them than 10 keep them on hand
as a constant temptation to Indulge in
unnecessary and extravagant expend!-
lures.
WE SHOULD NOT BE DELUDED.
1--WE must moi be deluded into a feeling
OF security by the fact that there has
been a suspension Of gold Withdrawals
during the past few months. and large
accession 10 our stock Of gold from
abroad during the same time" says the
I Secretary He points out that there Is
. no sufficient reason 10 believe that this
! change OK affairs viii be permanent, II
! cur existing system is maintained, and,
continuing he SAYS;
! Fluctuations IN the rates OF exchange
/ are produced by causes beyond the con-
| troll Of Official power. and one Of the mis-
| fortunes Of our present situation s. that
whenever these rates reach a point at
which It IS more profitable to export gold
! than 10 purchase bills for the settlement
| Of our balances abroad, the government
IS compelled 10 furnish the gold. or fail
to maintain the standard OF value estab-
| lished by law; In fact, abandon that
! standard; and the lega. or practical
| recognition OF silver as the basis Of our
monetary system would not relieve The
! government from the Obligation to pro-
cure coin by the issue Of bonds, or other
wise for tie redemption OF It's notes.
Until the notes are permanently retired
or tho obligation 10 redeem In coin is
| all 81 u mil.
be provided, and this reserve. whether
Il consists OF gold or silver, being subject
! 10 the demands Of all who desire 10 ex-
/ change notes for coin. must be repienish-
| ed from fimo 20 time by such means as
the government is able 10 command. No
system OF coinage that can be devised
| will furnish the government with either
gold OF silver. unless II pays for IL with
means already collected by taxation, or
by contracting an Indebtedness to be
paid by the people In the future.
CURRENCY CONTRACTION.
"T am thoroughly convinced that the
retirement and cancellation of United
! States notes Of both classes, under such
reasonable limitations and restrictions as
TO time and methods as Congress may
see proper 10 prescribe, or as a prudent
Secretary OF the Treasury would adopt
IN the exercise Of his official discretion
would not result. either permanently or
! tofaporarily. IN an injurious contraction
| Of the currency.
NO government, however despotic can
prescribe the exact amount Of currency
its people shall use IN the transaction Of
their business. and every attempt 10 regu-
late this subject by arbitrary rules, IN
m, form Of legislation or otherwise, IS n
departuro from true economic principles
I lafr ~ NJ al ~
business affairs in their own way, will
always decide for themselves how much
! money they need and. unless prevented
| nv artificial distractions. the necessary
! amount viii always be supplied. either
| from their own resources at home. or
| through exchange abroad. The volume
of business transacted determines the
amount Of money and credit required
and. whenever the volume Of business de-
mands an additional supply OF money, or
an extension Of credit, the demand will
certainly be complied with. provided the
laws DO not interfere 70 prevent IL. As
! rapidlv as our notes are redemmed and
cancelled. gold. or currency as good
as gold will take their places in the cir
culatlon. II the interests of the country
/ require II.
with a liberal commercial policy pro-
! noting the profitable introduction Of our
! large surplus pfOducts INTO the markets
of other countries. and a sound currency
system, promising safe Investment for
foreign capital IN our domestic industries,
we may confidently rely upon the opera
ton OF the natural laws OF trade and
! finance for an abundant supply OF good
money TO transact ell the business Of the
peoule and fully develop the great re-
sources at our command"
The Secretary holds that without a
reformation of our currency we cannot
safely rely upon permanent accessions to
cur stock Of gold from abroad in the set
| Element Of trade balances in our favor.