The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-12-22

Every menace to the gold reserve and ev
cry manifestation Of q formidable public
sentiment in favor of the redemption Oh
our notes otherwise than in gold coin
at once alarms the whole business com
munity, depresses trade and industry and
impairs the value of our public and pri-
vate securities in all the markets Of the
world. There is but one absolutely GER
tain way TO remove this delicate and dan
gerous question from our party politics
and that is to retire and cancel the notes.
I'VE must not be deluded into a feel
ing of security by the fact that there has
been suspension Of gold Withdrawals
during the last few months, and a large
accession to our stock OF gold from a.
broad during the same time because
there is no sufficient reason TO believe
that this condition of affairs viii be per-
manent, if our existing system is main
tanned.
81 ana thoroughly convinced that the
retirement and cancellation 'of United
States notes of both classes, under rea-
sonable limitations and restrictions as
to time and methods that Congress may
see proper to prescribe, or as a prudent
Secretary Of the Treasury would adopt
in the exercise of his official discretion,
would not result either permanently or
temporarily in an injurious contraction
of the currency.
"As rapidly as our notes are redeemed
and cancelled, gold or a currency as good
as good as gold, will take their places in
the circulation if the interests of the
country require it,"
The Secretary, in closing his report,
renews his recommendation of year ago,
ito issue bonds and use them or the pro-
ceeds of their sale for the purpose of
retiring n certain amount OF the notes
each year" He suggests, however, that
last years recommendation for retiring
the notes, all at once, sis perhaps too radi-
ca" in the present state of the public
mind and for that reason he thinks it
best to extend the time of retiring about
two or three years. He also recommends
that National banks be given authority
to issue notes to the par of their bond
holdings and also that the government be
relieved of the duty of redeeming such
National bank issues.
After reviewing the condition of the
Treasury, the Secretary says
What is most needed at present is
not more taxes, but more economy in
appropriations and expenditures.
'The great increase in the ordinary eX-
penditures of the government during the
last seven years has been without pre-
cedent in our history, in time OF peace,
and presents a subject which imperative
ly demands the most serious consideration
OF Congress.
'Unless our annual receipts are in
creased by improved business conditions,
or our annual expenditures are reduced,
a time will arrive when provision must
be made for additional revenue; and If
the expenditures of the government shall
be increased by acts of Congress, the
necessity for such a measure will arise
earlier than the present situation seems
to Indicate"
On the subject Of protection in this
connection, the Secretary says, in part:
$50 long as the income of the govern
ment from customs and international
taxes exceeded it's expenditures, the fact
that protective duties were destructive
of revenue, although clearly apparent to
all who observed the practical operation
Of the system, did not attract the atten-
ton of the public generally, but the situa-