Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-12-08
REVENUE AND BANKING.

to the tarin, the cuIIcncy puV9'''' "'
trusts. He defends the Wilson law,
claiming that, whatever may be its snort
comings as complete measure OF tarin
reform. Il must be conceded that II has
opened the way for freer and greater
exchange Of commodities between this
and other countries. He points out that
In the fiscal year ending June 30, 1896.
the only entire fiscal year that has
rounded up under its operations. our I'M
ports increased over those OF the previous
year more than $4,000; while the ex-
cess OF domestic exports over the previ-
Gus year was nearly 100000 The Presi-
dent contends that our tariff laws are
only primarily justifable, as sources OF
revenue. to enable the government to
meet its necessary expenses. and that,
I'm this respect. the present law cannot
justly fall under condemnation. AS to
the deficit Of some SO. 900 900 between our
receipts and our expenditures. he says 1t
was not unexpected. deficit OF N7Ho.-
600 was foretold by the Secretary Of the
Treasury seven months before the close
tagonizes the proposition that the appre-
hension and timidity in business circles
and the depression, I'm all activities re-
suited from the operations OF the present
tariff law. These conditions, however.
he says. seriously checked the imports.
and readily account for the deficit He
believes that the Wilson law. II allowed
an opportunity, will, in the near future.
with economical expenditures, yield
revenue that will overcome all deicien-
cies.
The President makes a statement OF
the funds in the Treasury available to
meet deficiencies. and defends the policy
of paying out these funds for that
purpose. II is not. he declares, the
function OF the government to accumu-
late a fund not needed for immediate
expenditures. lie maintains that 1t is
better TO appropriate our surplus to the
payment OF justihable expenses than to
allow 1t TO become an invitation to reck-
less appropriations and extravagant ex-
penditures.
OF our financial methods" which are
opposed to every rule of sound finance,
and shown by experience to. be fraught
with the gravest peril and perplexity,"
the President attacks the endless
chain" He is convinced, he says, that
safety until the governments obligations,
upon which gold may be demanded from
the Treasury, are withdrawn from cir
culation and cancelled. He terates his
former suggestion, that these obligations
be exchanged for long-term bonds, bear
ing a low rate OF interest, or that they
be redeemed with the proceeds of the
sale of such bonds. lie holds that. even
II only the greenbacks were retired at
is probable that the Treasury-notes is
sued in payment Of silver purchases I'M
der the act of 1880 now paid in gold
when demanded, would not create much
disturbance. as they might from time TO
time, when received In the Treasury. by
in gold or otherwise, be grad
ually and prudently replaced by silver
coin" Failing OF the bond-redemption
he would resort to the slower
process of cancelling and not reissung
currency obligations redeemable in gold,
whenever they have been so redeemed.
The President thinks that national
banks should redeem their own notes;
that they should be allowed to issue
circulation to the par value Of bonds
deposited as security. and that the cir
culation-tax ought to be reduced to one
fourth Of per cent. He is Of opinion
that too much stress has been laid upon
the danger of the contraction OF the
currency. II Is not so much contraction
as unequal distribution of currency that
should be avoided, he says. He renews
the recommendation contained in a pre-
vious message that the organization OF
smaller banks be allowed in less populous
than the law at present
permits, and that existing banks be au-
thorized to establish branches In small
under proper restrictions.
In concluding his treatment Of this sub
ject. however, the President uses the
following significant language: 1.-The en-
tire case may be presented by the state
ment that the day OF sensible and sound
financial methods will not dawn upon US
until our government abandons the bank
ing business and the accumulation OF
funds, and confines it's monetary opera
tons to the receipt OF the money con
tributed by the people for it's support.
and to the expenditure Of such money for
the peoples benefit"
The President criticises trusts as tend !
ing to stine wholesome competition. crush |
out individual independence. and hinder |
or prevent the free use OF human facul- |
ties, and the full development of human |
character. If. he says. the insuficiencies |
Of existing Federal laws against trusts |
can be remedied by further Federal legis-
laton it should be done; but it must be |
recognized that all Federal legislation on |
this subject may fall short of it's pur-
pose. because Of inherent obstacles of our
system. which confine the Federal au-
thority to its own sphere. He doubts |
whether the evils of trusts and monopo-
les can be adequately treated by Federal
action, but thinks there is no question OF
the power of the several States to act
ia the premises. In closing
he message, the President makes an ap-
peal to Congress for the most rigid
economy in the expenditure of the money
held in trust for the people.
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Our copy of the Presidents message
reached us at an early hour yesterday
morning over the wires of the Western
Union Telegraph Company, and was pre-
,ented to us with the compliments of