The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1896-12-30
TREASURY REPORT.
Secretary Carlisle Says Currency
Laws Need Revision.
Reasons Why Treasury Notes Should BE
Retired-Additional Revenues Need
ed-His Views on Protection
and other Topics.

Washington, Dec. 22.-The annual re-
port of the secretary of the treasury
which has been transmitted to congress
deals extensively and in detail with the
financial situation. Mr.. Carlisle sum
raarizes the condition of the treasury
and after reviewing his former recon-
mendations for early and effective leg
islation to provide for the retirement,
OF treasury notes. goes on to say:
Our Circulating Notes.
1.-THE maintenance OF policy which nec
essarily imposes upon the government the
burden of furnishing gold at the public
expense to all who may demand II for use
or boarding at home. or for export to otheI
countries, cannot be justified upon any
ground of eXpediency or sound fnancia!
principle, and even il the periodical anG
frequently recurring demands for gold die
not weaken the foundations of our entire
currency system, thus impairing conf.
0ence and depressing business, it would
nevertheless be the duty of all who are
charged with any degree OF responsibility
for the adoption of proper financial meth
DDS to insist upon the reformation Of our
laws on this subject at the earliest posi-
BILE day. The issue and redemption of cir.
culating notes is not a proper function OF
the treasury department., or of any other
department of the government. While the
government has power to borrow money,
1t is not its duty to issue public obligations
merely for the purpose of providing la
per currency for use in the transaction OF
business, nor has it the constitutional
power, IN my opinion, to make it's promises
legal tender in the payment OF private
debts. Such policy, even If sanctioned by
TIE constitution, instead of impartinG
strength and stability to our currency sys.
tenn, seriously endangers it by the intro
duction of political and partisan considera
lions into the management of a subject
which ought to be regulated entirely by
the business interests Of the people and
by the laws of trade and the principles
which control honest commercial inter
course"
Notes Should Be Retired and Cancelled.
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 at
tempts to hoard them permanently by the
government must fail, for the obvious rea-
son that our people will not consent to
be taxed merely for the purpose of ac-
cumulaIing and holding a large ard use.
less surplus in the treasury. Besides, the
notes must be Withdrawn from circulation,
in order to be boarded, and when with
drawn from circulation, it would be fan
more advantageous to the public to can.
Gel them than to keep them ON hand as
a constant temptation to indulge in un-
necessary and extravagant expenditures"
Former Recon- IN endation Renewed.
The secretary holds that without a ref.
ormation of our currency we cannot safe
ly rely upon permanent acceSSions t(
our stock OF gold from abroad in settlement
of trade balances in our favor. He re
ferS to his recommendation of last wear
that the secretary Of the treasury be au-
thorized to issue from time to time bonds
payable in gold, and to exchange them for
United States notes and treasury notes.
Must Provide Additional Revenue.
Taking up the question of revenue and
quoting figures and the yearly deficiency.
the secretary says:
But unless our annual receipts are in
creased by improved business conditions,
or our annual expenditures are reduced
time will arrive when provision must be
made for additional revenue; and if the
expenditures Of the government shall BIZ
increased by acts of congress, the neces-
sity for such measure will arise earlier
than the present situation seems to indi-
cate. In view of this possible contingency
1t will not be inappropriate to submit a
few suggestions concerning the general
policy to be adopted in making the pro-
vision to meet future necessities of the
government. For more than a century our
tariff legislation has been designed, to
great extent, at least, to accomplish OBJ
iects other than the raising of revenue for
public purposes. The protection of can
ital invested in our native industries and
the protection of labor employed in the
United States, against the competition OF
the products of foreign industries and for
eign labor, have been alleged as the par
amount objects in many cases. and urged
as a justification for the progressive in
creaSeS of tariff taxes and commercial re-
when revenue was not needed,
or when the rates imposed were made SC
high as to reduce the revenue. In other
instances, revenue duties have been abol-
ished in order that protective duties might
be retained or increased, and the neces-
sites of the government and just princi-
pies of taxation have been subordinated
TO the demands of special interests.
Effect on the Industries.
1.-The cost of production in all the great
nations has been so near
ly eQualized by modern inventions and
economics, that movements of their sey-
eral products from one to another cannot
take place upon larger scale, or for any
length of time, if these prod-
ucts are burdened in the markets to which
they are sent with charges to which the,
are not subjected in the countries of their
origin; and this tendency toward equaliza-
ton Of cost is still going on and must
continue. A very small tax or charge wi;
now entirely prevent the importation of
many articles which few years ago
a large proportion of our total
autiable merchandise and contributed
very materially to our public revenues
when the true principles Of taxation
ire recognized and applied in our fiscal
LEGISLATION, there will be no difficulty in
securing an ample revenue tor the support
If the government, in the exercise OF all
Is proper functions, without subjecting
,ur Industries to injurious and unneces-
:ary burdens, or our trade to Injurious and
restrictions"
New Englanders Celebrate.
New York, Dec. 23.-The New Eng
and Society of the City of New York
celebrated the ninety-frst anniversary