The times. [volume] (Richmond, Va.) 1890-1903, 1896-12-22
Secretary Carlisle Urges Upon Congress
the Necessity Of Such disposal.
PRESENT POLICY is UNJUSTlFlABLE'
He Warns Congress That the Lui' III ""'"
Withdrawals Must Not Delude Them
Into False sense ofsccurity- Ma
tionaI Banking Law.

a,,ior of the Treasury and after re-
viewing his former recommendations Tor
carly and effective legislation to provide
for the retirement Of Treasury notes
goes on to say:
CANNOT BE JUSTIFIED.
"The maintenance OF the policy when
necessarily Imposes upon the govern
ment the burden Of furnishing gold at
the public expense 10 all who may oe-
mand IL for use OF boarding at home, OF
for export to other countries. cannot be
justified upon any ground of eXpediency
or sound financial principle, ana even II
pcriodical and frequently recurring ce-
mands Tor gold did not weaken the
foundations Of our entire currency sys-
tenn. thus impairing confidence and de-
pressing business. II would never theieSs
be the duty OF all who are charged win
any degreo OF responsibility loi the duop-
tion of proper financial methoos 10 insist
upon a reformation Of our laws on TINS
subject at the earliest possible day.
"The issue and redemption of circulating
notes. is not a proper function OF the
Treasury Department, or OF any other
department OF government. While the
government has power to borrow money.
n IS not its duty TO issue pubic opll6a-
tfons merely for the purpose OF pfoNdlns
noner currency for use in the transac~
tion OF business. nor has IL the consutu-
tlonal power. I'm my opinion, 10 make
IFS promises legal tender in payment or
nrlvate debts. such policy. even iL
sanctioned by the Constitution, Instead
Of fmparfing strength and stability 70
our currency system seriously andaneers
il hv the introduction of political ana
uartIgqu considerations into the manage
mcnt OF a subject which ought to be re-
eulated entirely by the business inter
ests OF the people and by the laws OF
trade and the principles which control
honest commercial intercourse.
THE ONLY WAY OUT.
The Secretary refers TO the peril In
which the entire financial system has
been placed by the constant asilalioh
OF tNe currency question. and ADDS.
"Thorc Is but one absolutely certain
wov 10 remove this delicate and danger
oug question from our party politics, and
that is 10 retire and cancel notes. All
attempts 10 hoard permanently hy the
government must fail for the
reason that our people VIII not consent
10 be taxed merely for the purpose OF
| accumulatiue and holding large and
useless surplus in the treasury.
Besides the notes must Doe withdrawn
from IININ INihNIUN AI NlNf-I To l'' NI'f||INiN
and when withdrawn from circulation. 30
would De FAR more advantageous TO the
public T. cancel them than 90 keep thcm
| on hand as constant temptation 10 in
dulpe IN unnecessary and eXtravagant
expenditures.
1--WE must not be doludcd into a feel
| ing of security by the fact that there has
been a suspicion Of gold Withdrawals dur
inc the past few months and "a large ac-
ID
during the same time says the Srcre-
tary. lie points out that there is no suf-
| hcicnt reason 10 believe that this change
of affairs will be permanent if our exist
ing system IS maintained. and continuing
he says:
MUST RETIRE NOTES.
"Tluctuations in the rates Of exchange
are produced 10y causes beyond the con-
/ troll Of official power, and one OF the
/ misfOrtuucs of our present situation D.
! that whenever these rates reach "a point
! at which IL Is more profitable 10 export
| gold than TO purchase bills for the set
/ tlcment Of our balances abroad. the
! Government IS compelled to furnish the
| gold. or fail TO maintain the standard
! Of value established 10y law; In fact.
/ the abandonment of that standard. and
! the legal or practical recognition Of silver
! as the basis Of our monetary system
| would not relieve the Government from
! the obligation 10 procure coin hy the
! issue of bonds or otherwise. for tho re-
| demption of IT'S notes. Until the notes
| are permanently retired. or the obliea-
/ tiou 10 redeem I'm coin Is wholly repu-
| dated, large reserve must he pro-
yidcd. ana this reserve, whether II con-
sists Of gold or silver, being subject to
| the demands OF an who desire 90 cX-
change notes for coin. must be r,0len-
/ ishcd from time TO time 10y such means
as the Government IS able TO command
| No system Of coinage that can be de-
| vised will furnish the Government with
| either gold or silver unless u pays Tor
| IL with means already collected BY taxa
tion. or by contracting an Indebtedness
! 10 be paid by the people I'm the fnture.
Il am thoroughly convinced that the
! retirement and cancellation or Imted
| States notes Of both classes, under such
| reasonable limitations and restrictions
| as TO time and methods as Congress may
! see proper to preside. or as prudent
| Secretary Of the Treasury would adopt
in the exercise Of his official discretion,
would not result. either permanently OF
| tcmnorarily. in an Injurious contraction
| Of the currency.
LEGISLATION AND I USlNl-SS.
.eNo government. however despoic. car
uresorihe the exact amount oil currency
| is uecrle shall use in the transaction ol
! thair business. and every attempt 10 resu
| late this subject by arbitrary iuies III
the form of legislation or otherwise Is
a departure from true economic pfinci
nlss The people. if left free TO conduct
! thair business affairs in their own way
| win a,vavs decide for themselves no"
| much money they need and. unless pre-
! vented hv artificial distractions. the ne
| cessary amount will alw0ys be supplied
| either from their own -esOurces az nome
| or through exchange abroad. The Vol
| ume of business transacted determines
| the amount Of money and credit requir
| ed. and whenever the volume OF business
demands an additional supply OF money
or an extension OF credit. thc demand
will certainly ba complied with, pro-
! yided the laws do not interfere 10 prevent
H. As RAPIDLY as our notes are redeem
| ed and cancelled. gold or currency a.
good as gold. will take their places IN
the curcultion. if the interests OF Tho
! country require IL.
| with a liberal commercial policy. pro
| noting the profitable introduction or oui
| large surplus products into the market,
| Of other countries and sound currenc,
| svetcm promising safe investments foi
| foreign capital in our domestic Industries
we NAV confidently rely upon the opera
| ton Of fhe natural laws OF trade an'
finance for an abundant supply % goo,
| money 10 transact all the business OF ths
people and fully develop the great re
|