The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-12-22
CARLISLE AND THE CURRENCY.
IMPORTANT RECOMMENDATIONS IN
HIS ANNUAL REPORT.


cOmDIish the Result-Laws or
Trade would Prevent Contraction
OF the Currcncy-Trensury should
Also De Relieved From the ObIi-
cation to Redeem National Bank
NOtes-Tarin Legislation 10 In
crease the Governments Revenues
Also Looks Like a Necessity.
Washington, Dec. 2l.--rhe annual report
of the Secretary of the Treasury was
transmitted to congress to-day.
MIR. Carlisle summarizes the condition of
the treasury, and, after reviewing his
former recommendations for early and ef-
fective legislation to provide for the re-
tirement OF the treasury notes, goes on to
say: THE maintenance OF a policy which
necessarily imposes upon the government
the burden of furnishing gold at the pub
lie expense to all who may demand II for
use or boarding at home. or for export to
other countries, cannot be justified upon
any ground of expediency or sound hnan-
cial principle, and even If the periodical
and frequently recurring demands for gold
did not weaken the foundations of our
entire currency system. thus impairing
confidence and depressing business, it
would, nevertheless be the duty of all
who are charged with any degree of re-
sponsibility for the adoption OF proper
financial methods to insist upon the re-
formation of our laws on this subject at
the earliest possible day.
The issue and redemption of circulate
ing notes Is not a proper function of the
treasury department, or of any other de-
partment OF the government. While the
government has power to borrow money,
1t is not It's duty to issue public obllga-
tions merely for the purpose of providing
a paper currency for use In the transac-
tion of business, nor has It the constitu-
tional power, In my opinion, to make its
promises legal tender in the payment OF
private debts. Such policy, even If sane
toned by the constitution, instead of inn
parting strength and stability to our cur
rency system, seriously endangers II by
the Introduction of political and partisan
considerations into the management of a
tlreiy by the business interests of the peo-
pie and by the laws of trade and the prin-
c.ple which controls honest commercial
The secretary refers to the peril In which
the entire financial system has been plac-
ed by the constant agitation OF the cur
rency question, and adds: NThere Is but
one absolutely certain way to remove this
delicate and dangerous question from our
party politics, and that Y 20 retire and
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 accumulating and hold
ing a large and useless surplus In the
treasury. Besides the notes must be
Withdrawn from circulation in order TO
be boarded, and when withdrawn from
circulation, II would be far more advan-
tageous to the public TO cancel them than
to keep them on hand as a constant temp.
taton TO indulge In unnecessary and ex-
travagant expenditures.
1--WE must not be deluded into a feeling
of security by the fact that there has
been suspension of gold Withdrawals
during the past few months and @ large
accession to our stock OF gold from
abroad during the same time" says the
secretary lie points out that there Is no
sufficient reason to believe that this con-
our existing system Is maintained, and,
continuing, he says: Fluctuations in the
rates of exchange are produced by causes
beyond the control of official power, and
one of the misfortunes of our present sit
uaiion is that whenever these rates reach
a point at which Ii IS more profitable to
export the gold than TO purchase bills Tor
the settlement of our balances abroad, the
government rs compelled to furnish the
gold, or fail to maintain the standard OF
value established by lawj IN fact, the
abandonment Of that standard, ana the
legal or practical recognition or silver as
the basis of our monetary system would
not relieve the government from the obli-
cation to procure coin by the issue of
bonds or otherwise, for the redemption OF
its notes. Until the notes are permanent
ly retired, or the obligation TO redeem In
coin Is wholly repudiated. a large reserve
must be provided and this reserve, Wheth-
er i consists OF goia or slxer I'VE nelns SUD
change notes for coin, must be replenished
from time to time by such means as the
government is able to command. No sys-
fem of coinage that can be devised will
furnish the government with either gold or
silver, unless II pays for II with means
already collected by taxation or by con-
tracting an indebtedness 70 be paid by the
people IN the future.
"f am thoroughly convinced that the re-
tlrement and cancellation OF United States
notes Of both classes under such reason
able limitations and restrictions as 70 time
and methods as congress may see proper
to prescribe, or as prudent Secretary OF
Treasury would adopt In the exercise OF
his oficial discretion, would not result,
either permanently or temporarily. in an
Injurious contraction OF the currency. No
government, however desDotic, can pre-
scribe the exact amount OF currency It's
people shall use in the transaction of their
business, and every attempt 70 regulate
this subject by arbitrary rules In the form
OF legislation or otherwise, Is a depart
ure from true economic principles. The
people, IL left free to conduct their busi-
ness affairs In their own way, will always
decide for themselves how much money
they need. and, unless prevented by arti-
hcial distractions, the necessary amount
will always be supplied either from their
own resources at nome, or tn.ousn ns h... e&-
transacted determines the amount OF
money and credit required, and whenever
the volume Of business demands an addi-
tional supply of money or an extension OF
credit, the demand will certainly be COM
piled with. provided the laws do not inter-
fer to prevent It, AS rapidly as our notes
are redeemed and cancelled, gold or a cur
rency as good as gold, viii take their
places In the circulation. II the Interests
of the country require IT,
with liberal commercial policy pro-
noting the profitable Introduction OF our
large surplus products into the markets
OF other countries, and a sound currency
system, promising safe investments for
foreign capital in our domestic Industries.
we may confidently rely upon the opera
tion of the natural laws OF trade and
finance for an abundant supply OF good
money to transact all the business OF the
people and fully develop the great re-
sources at our command"
The secretary holds that without a re-
formation OF our currency we cannot safe
ly 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 authorized
TO Issue from time 20 time bonds payable
In gold and TO exchange them for United
States notes and treasury notes
this ha