Crawford avalanche. (Grayling, Mich.) 1879-19??, 1896-12-31
CARLISLE is hopeful
SECRETARY REVIEWS NATIONAL
FINANCES.
Despite a Defscft of $25,203, 245 at
Present and Larger Deficiencies
Probable in as97 and as9s, He Takes
Cheerful View.


The annual report of the Secretary Of
the Treasury, as transmitted to Con-
gress, deals extensively and in detail
with the financial situation. Mr.. Carlisle
summarizes the condition of the treasury,
and after reviewing his former recon-
mendations for early and effective legis-
lation to provide for the retirement of
treasury notes, goes on to say:
The mamtenance of a policy which
necessarily imposes upon the government
the burden of furnishing gold at the pub
iic expense 10 all who may demand it for
use or boarding at home, or for export
TO other countries, cannot be justified up
On any ground of expediency or sound
financial principles, and even IL the
periodical and frequently recurring de-
mands for gold did not weaken the foun-
dations of our entire currency system,
thus imparing confidence and depressing
business, il would nevertheless be the
duty of all who are charged with any de-
gree of responsibility for the adoption Of
proper financial methods to insist upon
the reformation of our laws on this sub
ject at the earliest possible day.
-'The issue and redemption of circu-
1ating notes isinot a proper function of the
treasury department, or of any other de-
partment of the government. While the
government has power to borrow money,
II is not It's duty to issue public obliga-
tiOns merely for the purpose of providing
a paper currency for use in the transac-
tiOn of business, nor has 1t the constitu-
tional power, in my opinion, to make its
promise legal tender in the payment of
private debts.
The Secretary refers to the peril in
which the entire financial system has
been placed by the constant agitation"
of the currency and favors the retirement
and cancellation of government notes
He says the people will not consent to be
taxed merely for the purpose of accumu-
1ating and holding a large and useless
surplus in the treasury.
He claims that no system of coinage
that can be devised will furnish the gov
-ernment with either gold or silver, un-
less ii pays for il with means already col
1ected by taxation, or by contracting an
indebtedness to be paid by the people in
the future
He goes at length into the subject of
the demand and supply of money, the
matter, of imports and exports as affecting
currency supplies, and the crops in Eu-
rope.
The Secretary holds that without a
reformation of our currency we cannot
safely rely upon permanent accessions to
our stock of gold from abroad in settle
ment of trade balances in our favor. He
refers to his recommendation of last year
that the Secretary of the Treasury be
authorized to issue from time to time
bonds payable in gold and to exchange
them for United States notes and treas
nry mites, and again indorses that plan,
but adds that il may be that so radical
a measure would not receive the assent
Of Congress, in the present state of the
public mind on the subject.
Mr.. Carlisle renews his recommenda-
tions for such amendments to the nation
al banking laws as would permit the issue
of circulating notes equal in amount to
the face value,df the bonds deposited and
reduce the tax on notes to one-fourth of
1 per cent. per annum. and that author
fly be given to establish branch banks
for the transaction of all kinds of busi-
ness now allowed, except the issue of cir
culating notes. No good reason now Is
perceived, he says, why this limitation
upon the required amount of capital
should not he reduced to $4,000, with
out regard 10 population. He again re-
fers TO and renews his suggestion that
the issue Of United States notes, treas
ury notes and national bank notes of
lower denominations than ten dollars be
prohibited in order to secure a large and
more permanent use of silver coin and
certificates.