The Mena weekly star., 1896-12-23
OUR CURRENCY.
The Secretary of the Treasury Trans
 mits to Congress His Report.
THE UNITED STATES NOTES.
carlisle Is Convinced That Their Re- .,,sment Would Not Result in an Injuri- ous Contraction of the Currency
 The Question of Revenue.

WASHINGTON, Dec. 22. 2.-The annual rsrort of the secretary cf the treasury, ,rhich was transmitted to congress to- .sav. deals extensively and in detail with the financial situation. Mir. Car tsle summarizes the condition of the tyeasurv and after reviewing his for ner recommendations for early and ef- feetive legislation to provide for the retirement of treasury notes, goes on to say:
 The maintenance of @ policy which necessa- y,lv imposes upon tue government the burden of furnishing gold at the public expense to all who demand it for use or hoarding at home or Chr export to other countries cannot be justi- eed mon any ground of expediency or sound snancial principle, and even if the periodical and frequently recurring demands for gold did not weaken the foundations of our entire cur repcv system, thus impairing confidence and denressing business it would. nevertheless. be the duty of all who are charged with any de- gree of responsibility for the adoption of uroper financial methods te insist ruon the reformation of OUT laws ou the subject at the earliest possible day The issue and redemption of circulating notes is not proper function of the treasury aepartrnent CT any other department of the
 
 ta borrow money. it is not it's duty to issue uublic obligations merely for the purpose of moviding paper currency for the use in the transaction of business, nor has it Ibe constt- tational power in my opinion, to make it's promises legal tender in the payment of pri- yate debts. Such policy even if sanctioned by the constitution instead of imparting strength and stability to our currency system seriously endangers it tby the introduction of political aud partisan consideration into the manage ment of subject which ought to be regulated entirely by the business interests of the eople and by the laws of trade and the principl which control honest commercial intercourse.
 The secretary refers to the peril in which the entire financial system has been placed by the constant agitation of the currency question and adds:
 There is but one absolutely certain way to remove this delicate and dangerous question from our party politics and that is to retire and cancel the notes. All attempts to hoard them permanently by the government must fail for the obvious reason thai our people will R0t consent te be taxed merely for the purpose of accomplishing and holding large and use less surplus in the treasury. Besides, the notes must he withdrawn from circulation, in order 10 be hoarded. and when withdrawn from ejaculation, it would be far more advantageous fa the public to cancel them than to keep them on hand as a constant temptation to indulge in unnecessary and extravagant expenditures
 Continuing. the secretary says:
 am thoroughly convinced that the retire. rent and cancellation of United States notes of both classes under reasonable limitations and restrictions to time and methods as congress- may see proper to prescribe. or as 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. No government however despotic. can prescribe the exact amoant of currency it's peo- pie shall use in the transaction of their business and every attempt to regulate this subject by arbitrary rules in the form of legislation. or otherwise, N departure from true economic principles The volume of business transacted determines the amount of money and credit required, and whenever the volume of business demands an additional snppy of money or an extension of credit the demand will certainly be compiled with, provided the laws do not interfere to pre- vent it As rapidly as our notes are redeemed and cancelled, gold or a currency as good as gOld. will take their places in the circulation 1.-the interests of the country require it.
 The secretary holds that without information of our currency we can not safely rely upon permanent access sions to our stock of gold from abroad In settlement of trade balances in our favor He refers to his recommenda- tlon 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 treasury notes Con- eerning this he says:
 While an act comforting express and plenary anthoritY of the secretary to issue bonds and use them. or the proceeds of their sale for the purpose of retiring Q certain amount of notes each year, is the most eifectual and economi- ehi way to accomplish that object, it may be that so radical measure would not receive me assent Of congress in the present state or .he public mind on the subject. and, If so. IS submitted that, at the very least. authority should be given to retire and eahcei maximum amount of notes each year "hen voluntarily presented by the holders and redeemed in gold. and if the maximum amount hxed by congress should be retired and cnn- eeled in any year by redemptions out of the kuia reserve. the secretary of the treasury snouln be clothed with authority to apply to sAas purpose any surplus funds In the treasury and in addition. if necessary. to issue the eharacter Of bonds above described to sutn- .iFnt amount to comply with Inc provisions or
 'aF' Ihe aioptlOH or sucn a poucy Wouiu sNelmmcdiata assurance Of q purpose to return wthln reasonable period to safe and oiAstic currency system and would remove nuch Of the doubt and uncertainty which have ot many years disturbed the public mind and ssa"parrassed the business of the people and snc operations Of the government No sudden
 iafge contraction of the active currency soua result from the execution of such plan s0oause the redemptions woui be made from s'ne to time with money lready withdrawn ..on circulation and held in the treasury. rx- .eps In cases where it mirht become necessary
 ssue and sell bonds ia order to make the re- eemptlons curres nand 10 iht. am. .unt reQuir-G