The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-12-22
CARLISLE AND THE CURRENCY.
Continued from First Page.)

to the accomplishment of the object, It
may be that so radical a measure will not
receive the assent of congress in the pres
ent state of the public mind on the subject,
and if so, it is submitted, at the very least,
tn toa' retire aHsNOii and cancel Cancel maxi
mum amount of notes each
year when voluntarily presented by. the
holders and redeemed in gold; and II the
maximum amount fixed by congress-
should be retired and cancelled in any
year by redemptions out of the gold re-
serve, the Secretary of the treasury
should be clothed with authority to apply
to that purpose any surplus funds IN the
treasury, and in addition, II necessary, 10
issue the character of bonds above de-
scribed to sufficient amount to comply
with the provisions of the law. Inc auop-
tioh OF such a policy would give lmme-
date assurance of a purpose TO return
within a reasonable period to safe and
elastic currency system, and would re-
move 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. No sudden or large cohtrac-
ton of currency could result from the eA-
ecution of such a plan because the re-
demptjon would be made from time 70
time with money already Withdrawn from
circulation and held in the treasury, eX-
cept in cases where it might become nee
essary to issue and sell bonds in ordef 70
make the redemptions correspond 10 the
amount required or authorized; ana IN All
prevented by selling the bonds abroad
and thus adding their proceeds to our 40
Continuing he says: ''Whatever plan may
be finally adopted for the retirement OF
United States notes and treasury notes
it will fail to afford complete protectlon 70
the government against demands for gold
in the future, unless it Includes provision
relieving the treasury from the obhgauon
to redeem national bank notes, except
such as are worn, mutilated, or defaced,
and the notes of failed banks, or requires
these institutions to keep their per cent.
redemption fund in gold and to deposit
gold coin for the withdrawal of bonds
when circulation is to be surrendered or
MIR. Carlisle renews his recommendation
for such amendents to the national bank
ing laws as would permit the issue of cir
culating notes equal in amount to the face
value of the bonds deposited and reduce
the tax on notes to one-fourth of / per
cent per annum, and that authority be
given to establish branch banks for the
Transaction of all kinds of business now
allowed except the issue of circulating
Taking up the question of revenue. and
quoting figures and the yearly deficiency,
the secretary says: But unless our an
nual receipts are Increased by improved
business conditions, or our annual expend-
itures are reduced, time VIII arrive when
provision must be made for additional
revenues; and, If the expenditures of the
government shall be increased by acts or
congress, the necessity for such meas
uation seems to indicate. In view OF this
possible contingency, II viii not be IN
appropriate to submit few suggestions
concerning the general policy to be ADOPT
ed in making the provision TO meet the
future necessities of the government. For
more than a century our tariu legislation
fas been designed, TO a great extent, at
least. to accomplish objects other than
the raising of revenue for PUBIC pur-
poses. The protection of capital invested
In our native industries and the protec.
Of eTQDlONe0
States against the competition OF the
products of foreign Industries ana foreign
labor, have been alleged as the paramount
objects in many cases, and urged as
Justification OF the progressive increases
Of tariff taxes and commercial restrictions,
when revenue was not needed, or wnen
the rates imposed were made so high as
10 reduce the revenue. In other instances,
revenue duties have been ABOLISHED IN Or
der that protective duties might be re-
tanned or Increased, and the necessities OF
the government, and just principles OF
taxation have been subordlnated 10 the de-
nfands OF special interests.
$50 long as the income OF the govern
ment from customs and internal taxes ex-
ceeded It's expenditures, the tact that pro-
tectlve duties were destructive OF revenue,
although clearly apparent to all who OBJ
served the practical operation or the sys'
fem. did not attract the attention of the
pe eD,'e mSaterlaiiy changed since 1892. and
hereafter it will not be possible 20 sacrl-
ice revenue TO protection without SER.
ouslv embarrassing the fiscal affairs OF
the government by depriving It OF an In
come sufficient TO oefray its necessary
expenditures. II the usual proportion OF
this income Is hereafter TO be derived
from taxes on imported goods, the protec-
live theory must be abandoned as the
basis OF our legislation upon the subject,
aud q well-considered and consistent rev.
enue system must be substituted IN us
place: and, IN my opinion, this can be done
without material injury 20 any trade or M
dustry now existing IN THIS country
Whatever danger existed from foreign
Competition the secretary thinks, las
been reduced % a minimum, o. wholly