Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1896-12-26
OUR CURRENCY.
Recommendations Contained in
Secretary Carlisle's Report.
The Secretary Is Convinced That the Re
tirement of Treasury Notes Would
Not Contract the Currency-The
Revenue Question.

WASHINGTON, Dec 22.-The annual
report of the secretary of the treasury,
which was transmitted to congress yes
-ferday, deals extensively and in detail
with the financial situation Mr.. Car
Isle summarizes the condition of the
TREASURY and after revie ewing his for
smer recommendations for early and eff
-fective legislation to provide for the
retirement of treasury notes, goes on
ito say:
The maintenance of policy which necessa-
erily imposes upon the government the burden
of furnishing gold at the public expense to all
who demand it for or boarding at home or
for export to other countries cannot be justi-
fed upon any ground of expectancy or sound
financial principle, and even if the periodical
and frequently recurring demands for gold did
not weaken the foundations of entire
zrency system, thus impairing confidence and
depressing business it would nevertheless. be
the duty of all who are charged with any de-
gree of responsibility for the adoption of
proper financial methods to insist
upon the reformation of 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 government has power
to borrow money. it is not its duty to issue
public obligations merely for the purpose of
providing paper currency for the use in the
transaction of business nor has it the consti-
7tutional power, in my opinion, to make its
promises legal tender in the payment OF pri-
-vate debts.
The secretary refers to the peril in
which the entire financial system has
been placed by the constant agitat ton
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 people will
not consent to be taxed merely for the purpose
of accommodating and holding a 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notes must be withdrawn from circulation.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order to be boarded and when Withdrawn from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 to keep them
son hand as constant temptation to indulge in
unnecessary and extravagant expenditures
Continuing, the secretary says:
am thoroughly convinced that the retire.
1znent and cancellation of United States notes
of both classes under reasonable limitations
and restrictions to time and methods
congress may see proper to prescribe,
prudent secretary of the treasury would adopt
tin the exercise of his official discretion would
mot result either permanently or temporarily,
in an injurious contraction of the currency. No
Ffhe exact amount of currency its peo-
pie shall in the transaction of
their business and every attempt to
regulate this subject by arbitrary rules
lin the form of legislation. or otherwise.
is a departure from true economic principles
The volume of business transacted determines
whenever the volume Of business demands
additional supply of money extension of
credit the demand will certainly be complied
with, provided the laws do not interfere to pre-
vent it AS rapidly notes are redeemed
and cancelled, gold. a currency good as
gold. will take their places in the circulation
If the interests of the country require it.
The secretary holds that without a
reformation of our currency we can
not safely rely upon permanent access
ssions 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
Vthe 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 plenary
authority of the secretary to issue bonds and
suse them, the proceeds of their sale, for the
purpose of retiring certain amount of notes
each year, is the most effectual and economi-
'cal way to accomplish that object, it may be
that SO radical a measure would not receive
sthe assent of congress in the present state of
the public mind the subject and if so,
hit is submitted that, the very least.
authority should be given 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 can
tceled 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, issue the
character OF bonds above described to a suffi-
scient amount to comply with the provisions of
She law.
In view OF the provisions of the existing law,
lit is clear that in case the United States notes
should be withdrawn from circulation, some
sother method of redeeming the national bank
currency must be adopted. and in my opinion
the obligation should be imposed directly upon
the banks themselves, or they should be
equired to keep the redemption fund deposit
with the treasurer in gold coin.
Taking up the question of revenue
and quoting figures and the yearly de-
fciency the secretary says:
But unless annual receipts are increased
sby improved business conditions our annual
expenditures are reduced, time will arrive
when provision must be made for additional
revenue and if the expenditures OF the govern
necessity for such measure will arise earlier
sthan the present situation seems to indicate.
So long the income OF the governments
from customs and internal taxes exceed its
expenditures, the fact that protective duties
were destructive of revenue, although clearly
apparent to all who observed the practical
operation of the system, did not attract the
attention of the public generally, but the
since 1892 and hereafter it will
not be possible to sacrifice revenue
TO protection without seriously embarrassing
the fiscal affairs of the government by depriv-
ing it of an income sufficient to defray its nee
-essary expenditures If the usual proportion
of this income is hereafter to be derived from
taxes on imported goods. the protective theory
must be abandoned the basis of our legisla-
and consistent revenue system must be sub
-Stituted In its place, and in my opinion this
can be done without material injury to any
srade CO industry now existing in this country.