The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1896-12-25
HE DELAYED REPORT
Vi the Secretary of the Treasury
Presented to Congress.
The Document Devoted Largely to Rene
dial Suggestions for Overcoming
the Present Financial LIS of
the Country.

i 'eport OF the secretary of the treasury,
As transmitted to congress, deals ex-
tensively and in detail with the finan-
cial situation. Mr.. Carlisle sum
marizes the condition of the treasury.
and after reviewing his former recon-
mcndations for early and effective
| legislation to provide for the retire
ineht of treasury notes, goes on to say:
"Ihe maintenance of policy which neces-
4 sarily imposes upon the government the bur-
ueh OF furnishing gold at the public expense to
All who may demand 1t for use or boarding at
nome. or for export to other countries
can not DC justified upon any ground OF ex-
/ pedlency or sound financial principle. and even
! II The periodical and frequently y-recurring de-
! mands lor gold did not weaken the foundations
! OF our entire currency system, thus impairinp
conn enoe and depressing business it would
+ nevertheless, be the duty OF all who are
charged with any degree OF respons bility
| Tor the adoption of proper financial
methods to insist upon the reformation of
/ our laws on this subject at the earliest possi-
pie DAY The issue and redemption of circu-
iaung notes is not proper function Of the
treasury department or OF any other depart
ment OF the government While the govern
ment has power to coin money. it is not in its
/ duty 70 issue public obligations merely for the
! purpose OF providing paper currency for use
ID the transaction OF business, nor has il the
constitutional power. In my opinion to make
! It's promises legal. tender in the payment OF
/ private debts. Such policy, even il sane
TONED by the constitution. instead of impart-
+ ing strength and stability to our currency sys-
/ TEN, seriously endangers il by the introduce
i tion OF political and partisan considerations
INTO the management of a subject which ought
/ TO be regulated entirely by the business inter-
ests 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 10y
the constant agitation OF the currency oues-
! tion, and adds.
There is but one absolutely certain way to
! remove this delicate and dangerous question
from our party politics. and that is to retire
| and cancel the notes. All attempts to hoard
them permanently oy the government must
fall, for the obvious reason that our people
VIII not consent to be taxed merely for the
/ purpose OF accommodating and boarding a large
ana useless surplus In the treasury. Besides
the notes must be withdrawn from circulation
In order TO be boarded, and when withdraw
from circulation, IL would be far more adyau-
tageous 10 the public TO cancel Them than to
keep them on hand a constant temptation
! penditures
We must not be deluAed INTO feeling OF
security by the fact that there has been a sus-
pension 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 suHlclent reason TO believe that this condi-
tion OF affairs will be permanent if our exist
! Ing system is maintained, and continuing
he says:
Fluctuations II the rates of exchange are
produced by causes beyond the control of Of
fetal power, and one CT the misfortunes 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
tlement of our balances abroad. the govern
ment is compelled to furnish the gold or fail
TO maintain the standard of value established
by law; in fact, the abandonment OF that
standard and the legal or practical
recognition OF silver as tue basis of our none
tary system would not relieve the government
from the obligation TO procure coin by the is
sue OF bonds, or otherwise. for the redemption
OF the notes Until the notes are permanently
retired, or the obligation to redeem in coin is
wholly repudiated.a large reserve must be pro-
vlded. ana this reserve, whatever 1t consists
OF, gold or silver, being subject to the demands
OF all who desire to exchange notes for coin
must be replenished from time to time by such
means as the government is able to command.
No system OF coinage that can be devised will
furnish the government with either gold or sill
yer, unless II pays for IL with means already
tollect ted by taxation, or by contracting an in
aebtedness TO be paid by the people in the fu-
sure
II am thoroughly convinced that the retire.
ment an cancellation of United States notes
of both classes. under such reasonable limita-
tlons and restrictions as cOngl ess may SEQ
proper TO prescribe, or as prudent secretary
of the treasury would adopt IN the exercise of
mis- official discretion would not result either
permanently or temporarily, 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 at
tempt TO regulate this subject by arbitrary
rules in the form of legislation or otherwise is
departure from true economic principles
The peop.e, II left free to conduct their busi-
ness a1airs in their own way, will always
1ecide for themselves how much money they
need and, unless prevented by artificial
distractions, the necessary amount win
always be supplied either from their own re-
sources 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 demands an
additional supply OF money or an extension OF
credit the demand will certainly be complied
With, provided that the laws do not interfere
20 prevent it. AS rapidly as our notes are re-
deemed and cancelled. gold or currency as
good as gold, will take their places In the cir
culaton, If the interests OF the country re-
auire IT,
with a liberal commercial policy, promot-
ny the profitable introduction of our large
surplus products Into he markets OF our roun-
try and a sound currency system, promising
Aafe investments for foreign capital In
our domestic industries, we may con-
hndently rely upon the operation
OF the natural laws of trade and
finance for an abundant supply of good money
to transact ali the business OF the people ana
fully develop the great resources at our COM
mand As soon as the resumption OF specie
payments had become assured. and tue agita-
tion of that question had ceased gold began to
flow in this country in large amounts, and
from 1878 70 1881, both years included our net
gains in imports alone was sl79 74s ,592; but in
addition to this, our available stock OF this
metal was considerably increased by our do
mestic production and by the renewed use of a
great part OF the coin previously boarded by
our people on account OF it's superiority in
value IA deprecated paper currency. For
a series OF years there had been deficient crops
in Europe. and the sale Of grain and provisions
In those markets created a very large
excess OF exports OF merchandise
over imports, eliminating. 1878. in a
balance in our favor OF sso6 80 Sis, the largest