Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-12-23
THE TREASURy'S CONDITION
Constant Agitation of the Cur
rency Question
RESULTS IN NO GOOD
Only One Solution for the Present Objection
able Treasury Notes
IS TO RETIRE AND CANCEL THEM
No Government Can Prescribe the Exact
Amount of Currency Its People Shall
Use Recommends Changes
in the Banking Laws.
S TO RETIRE AND CANCEL THEM

Washington, Dec. 21.-The annual re-
port of the secretary of the treasury
was transmitted to congress today. Mr..
Carlisle summarizes the condition of the
treasury, and after reviewing his former
recommendations for early and effective
legislation to provide for the retirement
of treasury notes. goes on to say
"The maintenance of policy winch
necessarily imposes upon the govern
ment the burden of furnishing gold at
the public expense to all who may de-
mand it for use or boarding at home, or
for export to other countries, cannot be
justified upon any ground OF expectancy
or sound financial principle, and even IL
the periodical and frequently recurring
demands for gold did not weaken the
foundations of our entire currency sys-
tenn, thus impairing confidence and de-
pressing business, it would nevertheless
be the duty of all who are charged with
any degree of responsibility for the
adoption of proper financial methods
to insist upon the reformation OF our
laws on this subject at the earliest pos.
sible day. The issue and redemption OF
circulating notes is not proper rune
ton of the treasury department. or OIL
any other department of the govern
ment While the government has pow
err to borrow money, 1T is not It's duty 10
issue public obligations merely for the
purpose of providing paper currency
for the use in the transaction OF business,
NOR has it the constitutional power, in
nv opinion, to make its promises legal
tender in the payment of private debts
Such a policy, even If sanctioned by the
constitution, instead OF impartlng
strength and stability to our currency
system. seriously endangers it by the
introduction of political and partisan
consideration into the management OF a
subject which ought to be regulated en-
tirely by the business interests of the
people 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 or
the currency question, and adds:
"There Is but one absolutely certain
way to remove this delicate and dam
gerous question from our party politics,
and that is to retire and cancel the notes.
All attempts to hoard them permanent
" Dy the government must fail for the
obvious reason that our people will not
consent to be taxed merely for the pur-
pose of accommodating and holding large
and useless surplus in the treasury. Be-
sides, the notes must be Withdrawn from
circulation in order to be boarded, and
when withdrawn from circulation 1t
would be far more advantageous to the
public to cancel them than to keep them
on hand as constant temptation to
indulge in unnecessary and eXtravagant
expenditure"
We must not be deluded into feeling
of security by the fact that there has
been suspension of gold Withdrawals
during the past few months and large
accession to our stock of gold from
abroad during the same time, says the
secretary He points out that there is
no sufficient reason to believe that this
condition of affairs will be permanent If
our 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 is that
whenever these rates reach point at
which it is more profitable to export
gold than to purchase bills for the set
Element of our balances abroad, the gov
eminent is compelled to furnish the gold,
or fail to maintain the standard of value
established by law; in fact, the abandon
ment of that standard, and the legal or
practical recognition of silver as
( fhe basis of our monetary sys-
tenn would not relieve the gov
eminent from the obligation to pro-
cure coin by the Issue of bonds or other
wise for the redemption of its notes.
Until the notes are permanently retired,
or the obligation to redeem in coin is
wholly repudiated, a large reserve must
~ nrovided, and this reserve. whether it