The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1896-12-25
DUB CURRENCY.
Recommendations Contained Ia
Secretary Oarlisle's Report
The Secretary Il Convinced That the Rs
efsmsnt Of Treasury Notes Would
Not Contract tie CGEren65-The
Revenue Question:


rebGrt of the Secretary Of the treasury,
which was transmitted to congress yes
terday, deals extensively and in detail |
with the financial situation Mr.. Car
isle summarizes the condition of the
| treasury and after reviewing his for
mer recommendations for early and eff
fective legislation to provide for the
retirement Of treasury notes, goes on
to sayi
The maintenance OF policy which nscessas
| rily imposes upon the government the burden
Of furnishing gold at the public expense 10 ali
Fho demand it for use or boarding at home or
for export to other countries cannot be Iustt-
| fed upon any ground Of expediency or sOund
/ fnaHci8l principle, and even if the periodical
/ and ITequsntIy FecHTTing demands for gold aid
not weaken the foundations Of our eutirs cure
Fency system, thus impairing confidence ana
/ depressing business il would, nevertheless. be
| the duty Of all who are charged with any DC
gree Of responsibility for the adoption Of
| proper financial methods to insist
/ up5n the reformation Of oar laws
on the subject at the earliest possible
! day, The issue and redemption of circulating
notes is not a proper function OF the treasury
| department or any other department Of the
! government While the Governments has power
| to borrow money, it is not its duty to issue
| public obligations merely for the purpose OF
providing pager currency for the use in the
tr8psaction of business, nor has it the cOnstt-
| tubional power, in my opinions to make its
! promises legal tender in the payment Of tri-
yate debts.
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 10
remove this delicate and dangerous question
| from our party politics and that IS TO retire
| and cancel the notes. All attempts to heard
! them permanently by the government must
fail, for the obvious reason that our people will
not consent to be taxed merely for ths purpose
! Of accommodating and holding large and use
less surplus in the treasury. Besides, the
notes must be Withdrawn from circulation, in
order to be boarded, and when Withdrawn from
circulation, it would be far more advantageous
to the public to cancel them than 30 keep them
| en- hand as a constant temptation to indulge in
unnecessary and extravagant expenditures.
Continuing; the secretary says:
lam thoroughly convinced tnat the retire.
ment and cancellation Of United States notes
| Of both classes under reasonable limitations
and restrictions as to time and methods as
congress may see proper 70 prescribe, or as
prudent secretary Of the treasury would adopt
in the exercise Of his official discretion, would
not result, either permanently or temporarily,
10 an injurious contraction OF the currency. No
government, however dBspotie, can prescribe
the exact amoGHt of currency its p60s
pie shall use in the transaction Of
their business ana every attempt to
regulate this subject By arbitrary rules
Ia the form Of legislation or otherwise,
IS departors 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 supply of money OF 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
aud Cancelled, gold, OF a currency as good as
gold, will take their places in the circulation,
if the interests Of the country require it.
The secretary holds that without
reformation of our currency we cam
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 recommends
ton 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-
corning this he says:
While an act comforting express and plenaTy
authority OF the secretary to issue bonds and
use them, or the proceeds Of their sale, for the
purpose Of retiring certain amount of notes
each year, Is the most efectuaI and ecOnOmi-
cal way to accomplish that object, it may be
that so radical measure would not receive
the assent Of congress in the present state OF
the public mind on the subject, and, if So,
it is submitted that, at the very least,
authority should be given to retire and
cancel a maximum amount Of notes each year
when voluntarily presented by the holders and
redeemed in gold, and if the maximum amount
fixed by congress should be retired and cam
celed in any year by redemptiOns out of the
gold reserve, the secretary OF the treasury
should be clothed with authority to apply to
that purpose any surplus funds in the treasury
and, in addition, if necessary, to issue the
character OF bonds above described to a sufIi-
cient amount to comply with tie provisions Of
she law
In view Of the provisions Of the existing law,
it is clear that in case the United States notes
should be withdrawn from circulation, some
other method of redeeming the national bank
currency must be adopted, aud in my opinion
the obligation should be imposed directly upon
the banks themselves, CT they should be re-
quired to keep the redemption fund on deposit
with the treasurer in gold coin.
Taking up the question Of revenue
and quoting figures and the yearly de-
| fcency the secretary says:
But unless our annual receipts are increased
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 govern
meat shall be increased by acts Of congress The
necessity for such measure will arise earlier
than the present situation seems to indicate
So long as the income OF the government
from customs and internal taxes exceed its
expenditures, the fact that protective duties
we're destructive OF revenue, although clearly
apparent to all who observed the practical
operation OF the system, die not attract the
attention Of the public generally, but the
situation has been materially changed
since 1892 and hereafter it will
not be possible 20 sacrifice revenue
| 20 protection without seriously embarrassing
the fiscal affairs Of the government by depriv-
ing it Of an income sufficient 10 defray its nee
essarg expenditures. II the usual proportion
! Of this income is hereafter to be derived from
taxes on imported goods, the protective theory
must be abandoned as the basis Of cur legisla-
ton unOn the subject aad a vel considered
and consistent revenue system must be sub
/ stitCted ia its place, and ia my opinion this
can be done without material injury TO anY
trade OF industry now existing IN this country,
! SULTAN MAKES CLAIMS.
Reforms Urged b. the FovFors said % Have
II Been Carried Dat
Il CoEsTANFIE0FLE, Dee. 22.-The Rus
sian ambassador had an hours subj
/ enee with the sultan Saturday, ST
which he urged the Introduction Of re-
| forms snd the granting Of amnesty to
| the Imprisoned ArneBiaBs. The sultan