Evening star., 1896-12-21


ing coin reserve for that purpose, will be
made political issues, and so long as these
questions remain in politics public conf
dence in the stability OF our currency must
be more or less disturbed. Even II the agi-
thd taaion Mo, OF these questions affected only
sequences would be sufficiently serious to
)uslliy demand for their permanent re-
tirement, but the character of our currency
Is such that whatever creates a doubt or
suspicion concerning their prompt redemp-
non in gold on presentation, necessarily i'm
pairs confidence in the whole volume ot
our circulation and inf, Its much greater
injury upon the public than could possibly
result from the failure of ordinary banking
institutions to redeem their paper. Every
menace to the gold reserve. and every
manifestation of formidable public senri-
ment In favor of the REDEMPTION of cur
notes otherwise than in gold coin, at once
alarms the whole business community. de-
presses eraoe and industry. and impairs the
value or our public and private securities
ii al the markets of the world
One Way Out.
Tnere is but one abs olutely certain way
to remove this delicate and dangerous ques-
ton from our party politics, and that is to
retire and cancel the notes. All attempts
TO hoard them permanently by the govern
ment must fail, for the obvious reason that
our people will not consent to be taxed
merely for the purpose of accommodating
anu hoiolng large and useless surplus in
the treasury. Besides. the notes must he
wtndrawn from circulation in order to be
noafdeu, and when Withdrawn from ciccu-
!aton, 1t would be far more advantageous
70 the public to cancel them than to keep
them on hahd as a constant temptation to
penditures.
w must not be deluded into feeling of
security by the fact that there has been a
suspension of gold Withdrawals, during the
tast rev months. and large accession to-
our stock or gold from abroad during the
same t1me, because there is no sufficient
reason to believe that this condition of af-
Ialrs VIII be permanent, if our existing
system Is maintained
No system of coinage that can he de-
Vised Will furnish the government with
either gold or silver unless IL pays for it
WIN means already collected by taxation
or Dy contracting an indebtedness to be
PAID by the people in the future
u am thoroughly convinced that the re-
tHemeht ana cancellation of United States
notes OF both classes, under reasonable linn
ltauonS and restrictions as to time and
HetnooS as Congress may see proper to
prescribe, or as prudent Secretary Of the
treasury would adopt in the exercise of
ms onclai discretion, would not result eth
er permanently or temporarily in an in
J1iioas contraction of the currency.
Trust the People.
Inc people, If left free to conduct their
business affairs in their own way, will al
ways decide for themselves how much
money they need. and, unless prevented
py artificial obstructions, the necessary
amount Will always be supplied, either from
their own resources at home or through
exchanges abroad. The volumes of busi-.
ness transacted determine che amount of
money and credit required, and whenever
the volume of business demands an addi-
tlonal supply of money. or an extension Of
4 toll,
Piled with. provided the laws do not inter-
fere to prevent it. AS rapidly as our notes
are redeemed and Cancelled, gold or a cur
rrency as good as gold will take their places
IN tne clrculatlon II the interests of the
country require it.s'H h
With "a Liberal commercial policy pro-
mRting the profitable Introduction of our
large surplus products into the markets
or other countries, and sound currency
system, promising safe Investments for for
eign capital in oufh domestic industries we
may confidently TeRygHpon the operation of Of
the natural laws of trade and finance for
transact all the bu,ikass Of the peehs 3 ia
fully develop the great resources at ou1
command.
Adhercr 10 4he policy = s.
I'm my last annual report it was recon-
mended that the Secretary of the Treasury
should be authorized to issue from time to
time bonds PAYABLE. m> gold, bearing in
terest at rate eeedfng 8 per centum
per annum, and haiviYtsg>'a Tong time run,
and to exchange such bonds for United
States notes atfa tdeasaiy notes, upon such
terms as might be- most advantageous to
the government or to sell the bonds abroad
for gold whenevsrs in his Judgment, 1t
might be advisable TODD so, and use. the
gold thus obtained in making redemptions
Of outstanding notes. ---" srfst,
'9rhe terms in which this recommendation
was made and the suggestions submitted
In support of it, showed that 1t did not
contemplate the retirement of all the out
standing notes at one time, but that the
process should be so conducted as to avoid
any danger of an improper contraction OF
the currency. Believing that this plan OF
redeemng notes. and at the same time sub
stituting an absolutely sound currency in
place Of them, promises the most, certain
means of accomplishing, the desired result
within a reasonable time, / adhere to the
views then expressed, but the object to be
attained is SO essential to the future finan-
efal safety Of the country that 1t ought
not, in my judgment, to be defeated or
abandoned simply on account of differences
of opinion concerning the methods of secur-s
ing 1t.
Authority for Bond Issues.
while an act comforting express and
rlenary authority upon the Secretary to is
sue bonds and use them or the proceeds of
their sale for the purpose Of retiring a GER
tain amount of the notes each year, would,
in my opinion, be the most effectual and
economical way to accomplish that object.
1t may be that SO radical measure would
not receive the assent of Congress- in the
present state of the public mind on the
subject, and If so. 1t is submitted that, at
the very least, authority should be given
to retire and cancel a maximum amount of
notes each year when voluntarily presented
by the holders and redeemed In gold; and
If the maximum amount fixed ny Congress
should not be retired and Cancelled in any
year by redemptions out of the gold reserve,
the Secretary of the Treasury should be
clothed with authority to apply to that pur-
pose any surplus funds In the treasury, and
In addition, if necessary, to issue the char
acter of bonds above described to a suffi-
c;ent amount to comply with the provisions
of the law.
Hopeful Outlook.
1T is believed that careful considera-
ticn of the existing situation, and a con-
servative reliance upon improved business
&C nditions in the future, fully justify the
conclusion that the estimated deficiencies
for the current year and for the year 1898
will not be realized unles our public ex-
penditures shall be very materially in
creased by acts of Congress, and that with
proper economy in administration and such
reductions in appropriations as might be
made without detriment to the public Sery-