The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1896-12-24

countries, cannot be Justified upon any
ground 81 expediency or sound financial
frequently recurring demands for gold did
y not weaken the foundations Of our entire
currency system thus impafring confidence
and depressing business, it would, neyerthe-i
less, ne the duty Of all who are charged
with any degree OF responsibility for the
adopt on of proper financial methods to in
slst upon the reformation of our laws on
ibis subject at the earliest possible day. q
Retire the Gree nbaclSs.
Ss There is but one absolutely certain way
g 70 remove this delicate and dangerous ques-
6 lon from our party politics, and that is to
retire and cancel the notes. All attempts
( % hoard them q ]. permanently BY the govern
4 ment must fail. for the obvious reason
that o IT people will not consent to be
taxed merely for the purpose Of accum u;
lating and holding large and useless
#surrlGs IN the treasury Il
8 With Il liberal commercial policy, pro-
noting the profitable Introduction OF orr
large surplus products into the markets
OF other: countries. and "a sound currency
system, promising safe investments for
foreign capital III our domestic enterprises.
we may confidently rely upon the operation
OF the natural laws Of trade and finance.
Tor en- abundant supply Of good money to
transact all tile business Of the people and.
5fuily develop all the great resources ut
our culnlnalitI n 7 7r'f
q In my last annual report 1t was recon-
mended that the secretary Of the treasury
should be authorized to issue from time to
time bonds payable in gold bearing in
terest at rate not exceeding 3 per cent
per annu1n. and. having long time to
run, and to exchange such bonds for United
States and treasury notes upon such terms
as might be most advantageous do the gov
eminent. or to sell the bonds abroad for
god Whenever, In his Judgment, 1t might
be advisable to do so, and use the gold
thus obtained in making redemptions of
outstanding notes. The terms in which
this recommendation was made and the
suggestions submitted in support Of it,
showed that it did not contemplate the
retirement of all the outstanding notes at
one time. but that the process should be
50 conducted as to avid any danger of an
improper contraction Of the currency. Be-
lieYing that this plan of redeeming the
notes, and at the same time submitting
an absolutely sound currency in place
OF them promises the most certain means
OF accomplishing the desired result within
reasonable time. ] adhere to the views
then expressed; but the object to be at
tanned Is so essential to the future fnan-4
cial safety Of the country that it oug lit not,
insmy Judgment, to be defeated sora aban-
doned simply on account Of differences Of
opinion concerning the methods of secur-
Ing it.
While an act comforting express and plen-
airy authority upon the secretary to issue
bonds and use them or the proceeds of
.nelr SAFE Tor the purpose Of retiring
cart9in amount OF the notes each year,
would, In my opinion, be the most effectual
and economical way to accomplish that OBJ
ject, and 1t may be that so radical a meas
ure would not receive the assent of con-
gress, In the present state Of the public
mind upon the subject, and If SO, it is sub
united that. at The very least, authority
should be given to retire and cancel q
maximum amount of notes each year when
voluntarily presented ! v the holders and
redeemed In gold; and If the maximum
amount fixed by congress should not be
retired and cancelled in any year by re-
demptions out of the gold reserve, the sec
rotary of the treasury should be clothed
with authority to apply to that purpose
any surplus funds in the treasury. and in
addition, II necessary. to issue the char
acter Of bonds above described to suf1i-
clent amount to comply with the provisions
of the law. >D7-~ss
Circulating Notes
For reasons which were submitted 1T
some length In my last annual report. and
which It is unnecessary to repeat I recon-
mend such amendments to the national
banking laws as would permit the issue OF
circulating notes s4equal in amount SD the /
face value Of the bonds deposited, and re-
duce the tax on notes to One-fourth Of
per cent per ail1f0m, and that authority be
given to establish branch banks for the
transac tion of all kinds Of business now
allowed, except the issue. Of circulating
notes. 7l52,Ie
The limitation upon the required amount
OF capital OF banks should, in the Judgment
OF the secretary, be reduced to 500, 900. In the
course OF his report ON the public expen-
ditures and revenues, the secretary says:
AT the close OF the, fiscal year 1895 the
available cash balance In the treasury
after deducting all current liabilities. but
including the gold reserve Of 500, 600 600.
was $l95,24O,1 53, and at the close OF the
fiscal year 1896 the available cash balance.
excluding the current liabilities, but includ-S
$267, 1870 an increase Of $40, 191 ,042. The
excess Of expenditures over receipts dur
Ing the year was g$25, 2O3, 245, while
the defcie ,lcyE during the fiscal years
1894 ls9 and md 1895 was $69,sO3,26 and
9 g g respectively 81 making The
ceipts from the ordinary sources Of reye-$
nue. during the three years $137, 811 ,729
The ordinary expenditures OF the govern
ment, including pensions and Interest on
the public debt, were $31,2yS. sos less DUR
ing the fiscal year than during the fiscal
year which closed on the Both day Of June
1893; S15, 345,S33 less than in 1894 and
4Ol5,So2 less than during the year 1895.
The total receipts from the ordinary sources
OF revenue, including the postal service, for
tHe AsestlhyeaF% 1870 were Sl7, $40, 100 great
er than In 1884, and for the year 1896 they
We're $19,102,205 greater than in 1895. max
Ing an aggregate increase OF $780, 672, 913 in
1886 over the year 1894. The Increase in
the receipts from customs during the year
1886 was $2S,203, POI over the receipts from
the same source in 1894 and $7,S63, 1874 in
excess OF the receipts of 1895; but during
the first five months Of the current fiscal
year the receipts from all sources have
been S9,62S,629 less than during the cor
responding five months OF last year, while
the expenditures for the same time have
increased $14,44s, sol. resulting in def
cheney Of $50 SAG, S45 on the LIST day of
December. The decrease In the receipts
from customs during the five months was
2,9SO,244, while the receipts from inter
nal taxes were about the same as during
the corresponding period Of last year.
s For the eleven months next preceding De
.cember, 1896, the total value of our simpor-
tatlons, dutfablesand free, was S116,SOOO OOs
less than during the corresponding eleven
months in the calendar year 1895, the de-
crease in free goods being $65,3OO, 600 and
In dutiable goods Sol, 500, COO More than
four-ffths of these large decreases occurred
In the first FIVE months Of the present fiscal
year, the falling off during that period be-
Ing SOC. 251, 600 In free goods and $44, 697 600
In dutiable goods. 9sS355s ss #$5ss
sls It Is believed that careful consid erations
Of the existing situation and conserva-
tive 4313gnpn Tnnn imnrnvnd hi1c IN ncc