The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-08
GAGECURREnCYIDEA
PLAN OF THE SECRETARY OF THE
TREASURY SUBMITTED TO
CONGRESS.
CHANGES IN BANKING LAW.
NOTES TO TAKE THE PLACE OF
GREENBACKS THAT ARE
RETIRED.
NEW DEPARTMENT IN TREASURY.
Functions of the tissue and Re
demption" Bureau Outlined
Heavy Deficit for the Year.

WASHINGTON, Dec. THE annual
report of the secretary of the treasury,
sent to congress today, shows that the
total receipts for the year ended June
80, 1897, were $3.50, 37S, 1877 and the ex-
penditures $44S, 439, 622, leaving a deficit
of SIS, 052, Asa.
The receipts of the year, however, ex-
ceeded those for the year 1896 by $780,
g1I,759.
The customs, it is shown, yielded
SIG, 554, 126, and internal revenue
sources $146, 68S, 574. AS compared with
1896 this is an increase in the customs
of SIG, 532, 374 and in internal revenue Of
$4,342. 721.
The secretary at some length argues
the need of reform in the currency
and in conclusion recommends the en-
actment of legislation establishing
department of the treasury to be desig-
mated as the issue and redemption divi-
sion, in which is to be deposited $125,-
900, coo in gold to be used only for re-
demptiOn purposes, and all silver now
he'd in the treasury for redemption pur
poses and also all silver bought under
the act of 1890.
He further recommends that the sum
of 5000, 900, 900 in United States legal
tender notes be also deposited in the
division to be disbursed therefrom only
frcm the receipt of gold. 1t is also rec
commended that provision be made for
the issue of refunding loan ten-year
214 per cent bonds, payable in gold, in
exchange for any part or all of the out
standing loans of the United States.
These recommendations are as follows:
LEGISLATION SUGGESTED.
First recommend that proper legislation
be enacted which will establish, separate and
aIart from the ordinary operations of the
treasury as they relate to revenue ana ex,
penditures, department to be designated and
known as the issue and redemption division.
To this division the sum of $1z5,OO0,OOO in
gold should be set over from the general
fund in the treasury, to be used only for
redemption purposes, and all the silver dol
lars row held for redemption of silver certiff-
Gates and all the silver bullion and dollars
coined therefrom, bought under the act of
$780, should be passed to the same account.
Further that the sum of $500, 600, GOO in the
legal tender notes of the United States known
as greenbacks be collected as hereinafter de-
scribed, and deposited in the said issue and
redemption division to be disbursed there
from only upon the receipt in exchange there
for of an equivalent amount OF gold coin,
SQCn SOiu, Wuen 50 SeCuIeuI W DS uelu III
said division as part OF the general redemp
ton fund.
Second-I recommend that provision be
made for the issue of refunding loan bonds,
payable after ten years at the pleasure of
the government, such bonds to bear interest
at the rate of 21a per cent per annum, pay
able principal and interest, in gold coin; and
that the secretary of the treasury be au-
thorized to issue such bonds and receive in
payment therefor. with an equitable allow
ance for the difference in interest, any part
1I,r . tho Tyy1fNo
States which mature by their terms of pay
ments in the years 1901 1907 and 1925.
The advantage involved in the proposed ac-
ton lies in this: 1t removes ambiguity
from our contract obligations-an ambiguity
which affects unfavorably the government
credit The word ''coin,'' now used to ex-