The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-12-07

e>AlA btiC ~ NttENS USED tG nav the EXPENSES
OF the government in excess OF the reve-
nues and sustain the gold reserve. While
II is true that the greater part of the pro
cecds OF these bonds were used to supply
deucient revenues, a considerable portion
was required 10 maintain the gold reserve.
with cur revenues equal to our expenses,
there would be no deficit requiring the is.
SuanCe ct bonds. But if the gold reserve
fails below $500 400 Geo how win st be re-
| plenished except by selling mere bor4s2
IS there any ether way practicable under
! existing law? The serious question then
IS, shall we cohtinue the policy that haS
been pursued in the past; that is that
/ when the government reserve reaches the
| point OF danger, issue more bonds and
supply the needed gold, or shall we provide
othar means to prevent these recurring
drstns upon the gold reserve? If no fur
ther legislation is had, and the policy of
selling bonds is TO be continued then con
sress should give the Secretary Of the
treasury authority 10 sell bonds q long or
snort periods, bearing a less rate Of inter-
est than is now authorized by law.
l earnestly recommend as soon as the
receipts of the government are quite suf-
| hcient to pay an the expenses of the gov
i ernment, that when any of The United
! States notes are presented for redemption
| for gold and areAredeemed in gold, such
notes shall be Kept and set apart and
only paid out in exchange for gold. This
is an obvious duty.
If the holder Of United States notes pre-
fers the gold and gets it from the gov
eminent he should not receive back from
I the government a United States note with
out paying gold in exchange for it. The
reason for this is made all the more APP
| parent when The government issues an in
| terest bearing debt TO provide gold for the
redemption of United States notes-a non
interest bearing debt, Surely it shall not
| pay them out again except on demand and
| for gold If tAxy are put out in any other
way, they ret@n again TO be followed by
another bond ISSUE 10 redeem them-an-
| other interest bearing debt to redeem
non-interest bearing debt.
In my view ii is of the utmost import
ance that the government should be re-
| lieved of the burden of providing all the
gold required for exchanges and export,
| This responsibility is alone borne by the
\ government without any of the usual and
| necessary barking powers to help itself.
| The banks do not feel the strain of the
| gold redemption The whole strain rests
| upon the government and the size of the
gold reserve in the treasury has come to
| he with, or without reason, the signal of
| danger or of security. This ought to be
| stopped. if we are TO have an era of pros
! perity in the country. With sufficient re
ceipts for the expenses of the government
we may feel no immediate embarrass-
| ment from our present currency; but the
udlSEI sum CAislS anu Will Jc SNti IlNsNAiL
| menacing so long as the existing system
| continues. And, besides, il is in time OF
| adequate revenues and business tranquil
| ity that the government should prepare
for the worst. We cannot avoid without
/ serious consequences the wise considera-
ton and prompt solution of this question.
| The Secretary of the Treasury has out
lined a plan in great detail for the pur-
pose Of removing the threatened recur-
renee of depleted gold reserve and save
us from future embarrassment on that ac
count. To this plan | invite your careful
consideration.
concur with the Secretary of the
! Treasury in his recommendation that ma
tional banks be allowed to issue notes
to the face value of the bonds which they
have deposited for circulation, and that
the tax on circulating notes secured by
deposit of such bonds be reduced to one
half of / per cent. per annum. | also join
him in recommending that authority be
given for the establishment of national
banks with a minimum capital of $4,000.
This will enable the smaller villages and
agricultural regions of the country to be
supplied with currency to meet their
needs.
1 recommend that the issue of national
banks be restricted to the denomination
of $40 and upwards If the suggestions l
| have herein made shall have inc approval
Of congress. then l would recommend that
| national ndnkS De EGQuiACO ~ lNhSNiAi Nl4Ni4
notes in gold.
Spain and Cuba.
The most important problem with which
this government is now called upon to deal
Dertaintng to its foreign relations, con-
| Germs its duty toward Spain and the Gu
| ban instruction. Problems and condi-
| tons more or less in common with those
| now existing nave confronted this govern
ment at various times in the past. The
story of Cuba for many years has been
one of unrest; growing discomfort; an eff
fort toward a larger enjoyment of liber-
| " and self control; of organized resist
ance to the mother country; of depression
! after distress and warfare and of Inet-
fectual settlement to this by renewed re-
volt For no enduring period since the en-
| reimbursement of the continental posses
| sion of Spain in the western continent has
the condition of Cuba or the policy of Spain
| toward Cuba not caused concern to the
! United States.
The prospect from time to time that the
weakness of SPANS hold on the island and
! the yicissitudes and embarrassments of
the home government might lead to the
| transfer of Cuba to a continental power
| called forth between 1923 and 1862 various
| emphatic declarations OF the policy of the
| United States to permit no disturbance of
! Cuba's connection with Spain unless in the
| direction of independence or acquisition
nor has there been any change of this de-
clared policy since upon the part of the
| government.
The revolution which began in 1868 lasted
for ten years despite the strenuous eff
forts of the successive pennsular govern
ment 10 suppress it. Then, now the
government of the United States testified
| its grave concern and offered its aid to
nut an end 70 bloodshed in Cuba. The
overtures made by Gen. Grant were refus-
ed and the war dragged on, eutailing great
loss of life and treasure and doing great
| Injustice to Americans, besides throwing
enhanced burdens Of neutrality upon this
| government In 1878 peace was brought
| about by the truce of Zanjon obtained by
NEGOTIATIONS between the Spanish com
mander, Martinez de Campos, and the in
| surgent leaders.
The present insurrection broke out in Feb
| ruary, 1885. 1t Is not my purpose at this
time to recall its remarkable increase or
to characterize its tenacious resistance
| against the enormous forces massed
| ,naipsf n nv Suain The revolt 0nd The