The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1896-12-23

"a
noutn> II is scarcely possible that snrh
'nAnses can occur in the course Of our interna-
-soneI trade during the next few Years As To
es'sns large annual balance in our favor
~ tnese favorable results continue 10 be
Isan-so ana our currency system sFalt Ne
p.aSeo upon sound basis, exberienee
Ana reason suks Justify the concIu-
s w. tnat very considerable amounts N
so'u must be sent here to nav Tor ~,
sApor0el products. or that sven II this should
nos oe the ease, the demand upon our existin,
-~SA VIII cease, and our own production.
Amounung 10 not less than e45, 90 lOOQ per an.
num' win be permanently added to the volume
Of our circulation"
The secretary holds tRst vitbbat a rstorm..
ssn sSsn our Currency we can not safely rely
-pva permanent aecessions to our stock Of
sOsu from abroad In settlement OF trade bal
suces IN our favor He refers to his RECON-
menuat'on OF last year, that the secretary OF
.ne treasury be authorised to issue, from tune
70 time. oonds payable id geld and 10 exchaugs
shen Tor United States notes and treasury
notes. Corcerning this he says.
while an act eonferring express and plenart
antnortty upon the secretary to issue bonds
and use them or the proceeds OF their sales for
'he purpose OF retiring a certain amount OF
notes each year. would in my opinion, be
the most enectual and economical way I'd ac-
eomplish that object, II may be that SO radical
q measure wotld not receive the assent Of con-
sress 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 re-
tire and cancel q maximum amount OF notes
each year which are voluntarily presented by
the holders and redeemed In gold, and II the
maximum amount hxed by congress should be
retired and cancelled In any year by redemp-
tion out Of the gold reserve, the secretary OF
the treasury should be clothed with authority
TO apply the surplus funds In the treasury. and
IN addition. II necessary, to issue the character
OF bonds above described 30 suiricient amount
to comply with the provisions Of the
law. The adoption Of such a
policy would be the giving Of immediate
assurance OF purpose to return within rea-
sonaole period to safe aud elastic currency
system and would remove much OF the doubt
and uncertainty which have for many years
disturbed the public mind and embarrassed
the business OF the people and the operations
OF the government Ne sudden Or large con-
traction cf the active currency would result
from the execution OF such plan, because the
redemptions would be made from time to time
with money already Withdrawn from the cir
culation and held in the treasury, except In
cases wsre II might become necessary to issue
and sell bonds In order TO make the redemp-
uons corresponding TO the amount required or
authorized; and In all such cases contrac on
could be easily prevented by selling the bonds
abroad and thus adding their proceeds to our
domestic stock OF money"
Continuing, he says: Whatever plan may be
finally adopted for the retirement OF United
States notes and treasury notes. 1t will fail to
AFFORD complete protection to the government
against demands for gold in the future, unless
u includes provision relieving the treasury
from the obligation 10 redeem national bank
notes, except such as are worn, mutulated, OF
defaced, and the notes Of failed banks, or re-
Quires these Institutions to keep their redemp-
tion fund In gold and to deposit gold coin for
the withdrawal OF bonds when circulation Is
to be surrendered or reduced. In view Of the
provisions OF the existing law, II 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 and, In my opinion
the obligation should be imposed directly upor
tho banks themselves, or they should bc re.
Qulred TO keep the redemption fund on deposit
with the treasurer, In gold coin"
Mr.. Carlisle renews his recommendation FOL
such amendments 70 the national banking laws
rs would permit the issue Of circulating note,
equal In amount 10 the face value OF the
bonds deposited and reduce the tax on note.
to one-fourth Of one per cent pei
annum, and that authority be given to estab.
lish branch banks for the transaction OF al
kinds of business now allowed except the Is
sue Of circulating notes. No good reason nov
is perceived. he says, why this Limitation upon
the required amount Of capital should not b,
reduced to Sss.UO0 without regard to population
lie again refers to and renews his suggestion
that the issue OF United States notes, treasury
notes and national bank notes OF lower de-
nominations than slO be prohibited In order B,
secure large and more permanent use OF the
silver coin and certificates
Taking up the question OF the revenue an,
quoting figures and the yearly deficiency, tn,
secretary says "But unless our annual re
ceipts are increased by improved business con
ditions, or our annual expenditures are re
duced, time will arrive when provision mus
be made for additional revenue; and II the ex
penditures OF the government shall be In
creased bv acts OF congress the necessity 70
such o measure will arise earlier than tn
present situation seems to indicate In vie,
Of this possible contingency, 1t will not be In
appropriate to submit few suggestions con
cerning the general policy to be adopted Il
making the provision TO meet future necessi
ties OF the government
"For more than century our tariff legisla
tion has been designed. to q great extent, q
least, to accomplish objects other than tn
| raising OF revenue for public purposes. Tn
protection OF capital invested in our native in
dustries, and the protection OF labor employee
in the United -tates against the competition
Of the products OF foreign industries and for
eign labor have been alleged as the paramount
objects In many cases. and urged as justihca
tion for the progressive Increases OF tart
taxes and commercial restriction, whe
revenue was not needed, or whe
the rates imposed were made SO high as to re
duce the revenue. In other instances, revenu
duties have been abolished in order that pro
tective duties might be retained or increase
and the necessities Of the government and jus
principles Of taxation have been subordinate
10 the demands Of special interests.
80 long US the income of the govornmer
| from customs and internal taxes exceeded II
expenditures, the fact that protective dutit
were destructive OF revenue, although clear
apparent TO all who observed the practical OF
Grafton Of the system, did not attract the a
tention OF the public generally; but the ST
uation has been materially changed sine
1892 and hereafter IL will not be possibl
to sacrifice revenue to protection without ser
ously embarrassing the fiscal affairs Of tf
government by depriving it of any incom
sufr,cient to defray its necessary expenditures
| II the usual proportion Of this income is here
after to be derived from taxes on importe
Foods, the protective theory must be abar
| doned as the basis OF our legislation upon I'll
subject, and well-considered and consister
revenue system must be substituted In Il
place; and, In my opinion. this can be dor
without material Injury to any trade or indui
| try now existing in this country.
I'm view Of the comparatively small an
constantly decreasing part OF our laborin
population that would be effected even by
| repeal OF duties, movement for the impos
tion OF higher duties upon imported goods ca
not be regarded as justinable upon any Of u
grounds usually urged In support OF such mea
ures by the advocates OF protective theory
"of all the great manufacturing nations, ou
| is the only one which annually produces su
Mus Of food and raw materials, and unless
fail TO utilize our resources, we must becon
| the great exporting country OF the worl