The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1896-12-25


ports OF silver. 81 1855 ,0i5 making total of
! 1911 UTl,T24 or nearly S6,OOO000 more than the
highest amount for any previous period OF IL
months 1t is scarcely possible that such
chauges can occur In the course OF our interna-
tional trade during the next few years as TO
| prevent large annual balance in our favor,
and II these favorable results continue to be
realized and our currency system shall be
! placed upon sound basis, experience
and reason alike justify the conclu-
sion that very considerable amounts Of
soiu must be sent here to pay for our
exporte products, or that even IL this should
| mol De the case. the demand upon our existing
STOCK will cease. and our own production,
amounting to not less than S45, 90 1000 per an
| mum, VIII be permanently added to the volume
! of our circulation"
Tne secretary holds that without reforma-
! ton OF our currency we can not safely rely
! upon permanent accessions to our stock OF
gold from abroad In settlement OF trade bal
anees In our favor. He refers to his recon-
| mendation of last year that the secretary OF
the treasury be authorized to issue. from time
10 time bonds payable in gold and to exchange
| them for United States notes and treasury
notes Concerning this he says:
While an act conferrlng express and plenary
| autuorlty upon the secretary to issue bonds
and use them or the proceeds OF their sales for
the purpose OF retiring certain amount OF
NOTES each year, would in my opinion, be
the most effectual and economical way to ac-
| compllsh that object Ii may be that so radical
| "a measure would not receive the assent OF con-
gress In the present state OF the public mind on
the subject, and If so, IL is submitted that, at
| the very least, authority should be given TO re-
tire ana cancel "a maximum amount OF notes
| each year which are voluntarily presented by
the holders and redeemed in gold and IL the
maximum amount fixed by congress should be
retired Gnd cancelled in any year by redeup-
hoo srn1A .
| the treasury should be clothed with authority
to apply the surplus funds in the treasury and
IN addition II necessary, to issue the character
OF oonds above deScribedt 20 a sufficient amount
| 70 comply with the provisions OF the
law The adoption of such a
policy would be the giving of immediate
assurance OF a purpose to return within rea-
sonaole period to a safe and elastic currency
| system and would remove much of the doubt
and uncertainty which have for many years
| disturbed the public mind and embarrassed
| the business OF the people and the operations
| OF the government No sudden or large con-
traction of the active currency would result
from the execution OF such plan. because the
| redemptions would be made from time to time
! WITH money already Withdrawn from the cir
oGlation and held in the treasury, except in
cases were 1t m ght become necessary TO issue
| and sell bonds IN order to make the redemp-
tions corresponding to the amount required or
could be easily prevented by selling the bonds
abroad ana thus adding their proceeds to our
| domestic stock OF money"
Continuing, he says: Whatever plan may be
| finally adopted for the retirement of United
| states notes and treasury notes, II will fail to
| AFFORD compete protection to the government
| against demands for gold in the future unles 3
| lt includes provision relieving the treasury
| from the obligation to redeem national bank
notes, except such as are worn. mutulated or
defaced, and the notes of failed banks, or re-
qulreS these institutions to keep their redemp-
tion fund in gold and to deposit gold coin for
the withdrawal of bonds when circulation is
to be surrendered or reduced. In view of the
provisions OF the existing law, it is
clear that in the United States notes
should be withdrawn from circulation. some
other method OF iedeeming the national bank
currency must be adopted, and, in my opinion,
the obligation should be imposed directly upon
the banks themselves, or they should be re-
qulred to keep the redemption fund on deposit
with the treasurer, in gold coin, "
Mr.. Carlisle renews his recommendations for
such amendments TO the national 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 one per cent. per
| annum, aud that authority be given to estab-
lish branch banks for the transaction of all
kinds of business now allowed except the is
sue OF circulating notes. No good reason now
| is perceived. he says, why this Limitation upon
the required amount of capital should not be
reduced TO s2a,U0O without regard to population
He again refers to and reuews his suggestion
that the issue OF United States notes. treasury
notes and national bank notes OF lower de-
nominations than 80 be prohibited in order to
secure large and more permanent use of the
silver coin and certificates.
Taking up the question of the revenue and
quo ing figures and the yearly deficiency, the
secretary says: But unless our annual re-
ceipts are Increased by improved business con-
ditions, or our annual expenditures are re-
duced, time viii arrive when provision must
be made Tor additional revenue; and if the ex-
penditures OF the government shall be in
creased bv acts of congress the necessity for
such measure will arise earlier than the
present situation seems To indicate. In view
OF this possible contingency, it will not be in
appropriate to submit few suggestions con-
corning the general policy TO be adopted in
making the provision to meet future neces,i-
ties OF the government
For more than century our tariff legisla-
tion has been designed. to a great extent, at
least, to accomplish objects other than the
raising Of revenue for public purposes The
protection OF capital invested in our native in
dustries and the protection OF labor employed
in the United tates against the competition
of the products OF foreign industries and for
eign labor have been alleged as the paramount
objects in many cases, and urged as a justifica-
tion for the progressive increases OF tarin
taxes and commercial restriction, when
revenue was not needed, or when
the rates imposed were made so high as to re-
duce the revenue In other instances, revenue
duties have been abolished In order that pro-
tective duties might be retained or increased
and The necessities OF the government and lust
principles OF taxation have been subordinated
to the demands OF special interests.
$50 long the income of the government
from customs and internal taxes exceeded its
expenditures, the fact that protective duties
were destructive OF revenue, although clearly
apparent to all who observed the practical op-
Grafton OF the system, did not attract the at
tention OF the public generally; but the Sit
uatton has been materially changed since
1892 and hereafter ii will not be possible
to sacrifice revenue TO protection without seri-
ousy embarrassing the fiscal affairs OF the
government by depriying it of any income
sufficient to defray its necessary expenditures
II the usual proportion OF this income is here
after TO be derived from taxes on imported
goods, the proteetiye theory must be aban-
doned as the tasls OF our legislation upon the
subject, aud weli-consldered and consistent
revenue system must be substituted in it's