Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1896-12-26
WOULD RETIRE eREENeAcKs.
Tho Leading Recommendation Contained
In Secretary Carlisle's Annual Report
Tao Treasury Deficit.

Tho Leading Recommendation Contained |
In Secretary Carlisle's Annual Report |
Tao Treasury Deficit.
WASHINGTON, Dec 2s-The annual report OF |
the secretary OF the treasury, which was trans |
mitted to congress Monday, deals extensively |
with the financial situation, Mr. Carlisle SUM |
marizes the condition OF the treasury, and
after reviewing his former recommendations
tor early legislation to provide for the retire.
ment OF treasury notes, goes on to say
Ihe maintenance of policy which imposes
upon the government the burden of furnishing
gold at the public expense to all who may de-
mand 1T for use or boarding at home, or for ex-
port TO other countries, cannot be justified up
on any ground OF expediency or sound hnnn-
cial principles, and even If the frequently re-
ourring demands for gold did not weaken the
foundations of our entire currency system,
thus inpairing confidence and depressing bus
mess 1t would nevertheless be the duty OF oil
who are charged with any degree of RESPONSE
bility for the adoption OF proper financial
methods to insist upon the reformation OF our
laws on this subject at the earliest possible day.
The issue and redemption of cir tulating notes
is not proper function of the treasury depart
ment or OF any other department of the gov
ernment While the government has power to
borrow money, 1t is not its duty to issue public
obligations merely for the purpose of providing
paper currency for use in the transaction of
business, nor has IL the constitutional power,
in my opinion to make its promises legal ten
der in the payment OF private debts Such q
| policy, even II sanctioned by the constitution,
| instead of imparting strength and stability to
| our currency system, seriously endangers IT,
The secretary refers to the peril in which the
| entire financial system has peen placed by the
constant agitation of the currency question and
| adds; There is but 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 that our people will
not consent TO be taxed merely for the purpose
of accommodating and holding large and use
| less surplus in the treasury.
| We must not be deluded into feeling of
| curity by the fact that there has been Sus-
| pension OF gold Withdrawals during the past
few months and large accession to our stock
| of gold from abroad during the same time. Mr..
| Carlisle points out that there is no reason to
| believe that this condition of affairs will be
| permanent II our existing system is maintained.
am thoroughly convinced that the retire.
ment and cancellation of United States notes
| of both classes, under such reasonable restric
| tions as to the time and methods as congress
| may see proper to prescribe or Us a prudent
| secretary OF the treasury would adopt in the
exercise of his official discretion, would not
result in injurious contraction OF the cur
| rency. No government can prescribe the eX-
act amount of currency its people 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,
is a departure from true economic principles
| The secretary holds that without II reforma-
tion of our currency we cannot safely rely upon
permanent accessions to our stock of gold from
abroad in settlement Of trade balances in our
favor He refers to his recommendation of last
year that the secretary of the treasury be au-
thoriZed to issue bonds payable in gold and to
exchange them for United States notes and
| treasury notes. Concerning this he says:
While an act comforting express and plenary
authority upon 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 would. in my opinion, be the
most efectual and economical way to accom-
plish that object, 1t may be that radical q
measure would not receive the assent OF con-
gress in the present state of the public mind
on the subject. and II so. it is submitted that,
at the very least authority should be given to
retire and cancel n maximum amount OF notes
each year when voluntarily presented by the
holders and redeemed in gold and II the maxi
mum amount fixed by congress should be re-
tired and cancelled in any year by redemptions
out OF the gold reserve the secretary of the
treasury should be clothed with authority &c
apply to that purpose any surplus funds in the
treasury, and in addition, If necessary, to issue
the bonds above described to sufficient
amount to comply with the provisions of the
law. The adoption of such policy would give
immediate assurance OF purpose to return
within u reasonable period to a safe and elastic
currency system.
Mr.. Carlisle renews his recommendations fol
such amendments to the national banking laws
as would permit the issue OF circulating notes
equal in amount to the face value of the bonds
deposited and reduce the tax on notes to a of
per cent per annum, and that authority bt
given to establish branch banks for the trans.
action of all kinds of business now allowed ex.
cept the issue of circulating notes.
Taking mp the question OF revenue and quot.
ing figures from the yearly deficiency, the sec.
retary says: But unless our annual receipt:
are increased by improved business conditions
or our annual expenditures are reduced, u tint
will arrive when provision must be made fol
additional revenue, and, II the expenditures O
the government shall be increased by acts o
congress, the necessity for such a measure viii
arise earlier than the present situation seems
to indicate.
So long as the income of the government from
customs and internal taxes exceeded its ex
penditures, the fact that protective duties
. were destructive OF revenue did not attract thu
attention of the public generally, but the sit
uation has been materially changed since lS9
and hereafter it will not be possible to sacrific
revenue to protection without severely EN-
barrassing the fiscal affairs OF the government
by deprivirg it OF an income sufficient to defra
its necessary expenditures.
The revenue of the government from o.
sources for the last fiscal year was Si09 475, ,i0s
and the expenditures S434. 61S 65i, which leave
! deficit for the year ending June 80 1896 O
|
1t is estimated that upon the basis of exist
|, | ing laws the revenues for the fiscal year lS9
. will be: From customs sl50 000. 600. from in
Z ternal revenue II ,5G00,0D0. from miScellaneou
i, sources 2)Oo0, 900 from the postal service s96
- 227 ,076: total estimated revenues s421 .227,
076 The estimates of appropriations require
: for the same period exclusive OF sinking func
amount to OF, which leaves esti
mated deficiency for the year ending June 81
: 1885, of sI5,7lS970.
To Prevent Squeeze in Coke.
CHICAGO, Dec. 22.-The Illinois Stee
e % aocor6ipr ia rapnrts c,,rrant l.