The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1897-12-09
GAGh'S CURRENCY PLANS.
He Makes IhDm rublic In His Message
to Congress.

to Congress.
WASHINGTON, Dec. S.-The annual
report of the secretary of the treasury,
sent to congress, shows that the total
receipts for the year ended June 30,
1897, were $430,31S, 1877 and the expend-
itures IA 40, ,t22, leaving q deficit for
the year of $ls,O52, ,454. The receipts
for the year, however, exceeded those
for the year 1896 by $20,9ll,759. The
customs, it is shown, yielded $l76.554,
l26 and internal revenue sources $l46,.
6SS,574. AS compared with 1896 this is
an increase in the customs of $l6,532,.
374 and internal revenue SABBATH.
The secretary at some length argues
the need of reform in the currency
and in conclusion recommends the en-.
actment of legislation establishing o
department of the treasury to be desig-
mated as the issue and redemption de-
partment in which is to be deposited
$l23, 900, 900 in gold, to be used only for
redemption purposes, and oil silver
now held in the treasury for redemp-
tion purposes and also all silver bought
under tho act OF 1890. He further recon-
mends that the sum of $500. zoo, 900 in
United States legal tender notes be also
deposited in this division, to be dis.
bursed therefrom only upon the receipt
of gold 1t is also recommended that
provision be made for the issue of re.
funding loan ten.year 2l9 per cent
bonds, payable in gold, in exchange for
any part or | of the outstanding loans
of the United States.
The secretary also recommends that
national banks be authorized with q
minimum capital of $4,000 in places
having population of 1000 or less,
and that the rate of taxation on circu.
lating notes, secured by deposit OF
bonds, be reduced to one. half of per
. cent per annum also that banks be
permitted to issue circulating notes to
the par value of the refunding bonds
deposited by them in the treasury, and
further, that banks be allowed to de.
posit as security with the treasury
greenbacks, treasury notes or silver
certificates to a total amount of the
800, 900, 900 against which national
bank notes shall be issued to them &c
au equal amount. After the banks
have deposited such bonds, greenbacks
treasury notes and silver certificates to
the amount of 90 per cent of their capi-
tai they shall be permitted to issue
bank notes in addition to the 90 per
cent thus provided, to the extent of 20
per cent, for which the banks assets
shall be liable.
He also recommends that the guar
anty of payment by the government be
extended to all circulating notes of the
bank, whether issued against deposited
security or against assets. To secure
the government against loss, if any, q
tax of 20 per cent should be levied on
unsecured circulation to create safety
fund to be invested by the comptroller
in United States bonds. In addition
the government should be further pro
tected, the secretary says, by having
first lien upon all assets in case of fail
ure of the issuing bank. It is further
recommended that all notes be re-
deemed in the city of New York and al
other sub.treasuries at the expense Of
the banks, and that the issue of ma
tional bank notes be restricted to the
denomination of $40 and upwarde.