Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-12-08
MR.. CAGES REPORT.
THE SECRETARY OF THE TREA-
sURY TO CONGRESS-.
REFORM OF THE CURRENCY.
Recommendations Enlarged Upon
by the President I'm His Message
Law Changes-NOte Guaranty.

WASHINGTON, D. c., December T.
The annual report Of the Secretary Of the
Treasury sent to Congress to-day shows
that the total receipts for the year
ended June 30, 1897. were $4SO,S7S,167. and
the expenditures $liS S4S9, 622, leaving a de-
felt for the year of s1S.O52.4 .454. The re-
cepts for the year, however. exceeded
those for the year 1896 by 1,759. The
customs, 1t is shown, yielded $l76,0d.126,
and internal revenue sources sli6,SSS ,574
AS compared with 1896, this is an increase
in the customs of sl6,532.S7i and in in
ternal revenue of $.3l2,72l..
The Secretary at some length argues the
need of a reform in the currency, and in
conclusion recommends the enactment Of
legislation establishing a department Of
the Treasury, to be designated as the Is
sue and Redemption Division, in which
shall be deposited l25,OOO,OOO in gold, to be
used only for redemption purposes. and
all the silver now held in the Treasury
for redemption purposes, and also all sill
yer bought under the act of 1890 He
further recommends that the sum Of
t-ItWtD,Vib III GIiAtu sotdA'o i'b"hiTNNhN~A
notes be also deposited in this DIVISION
to be disbursed therefrom only upon the
receipt of gold.
Ii is also recommended that provision
be made for the issue of refunding loan
ten-year 2 f-2 per cent. bonds, payable in
gold, In exchange for any part or all OF
the outstanding loans Of the United
States.
The Secretary also recommends that
national banks be authorized with a
minimum capital of $4,000, in places
having a population of 1000 or less. and
that the rate of taxation on circulating
notes secured by deposit of bonds be re-
duced to one half of 1 per cent. per an
mum; also, that banks be permitted 10
issue circulating notes to the par value
of the refunding bonds deposited by them
in the Treasury; and further, that banks
be allowed TO deposit as security, with
the Treasury greenbacks, Treasury notes,
or silver certificates, 10 total amount OF
the $500. 100000, against which national
bank notes shall be issued to them to an
equal amount. After the banks have de-
posted such bonds, greenbacks, Treasury
notes. and silver certificates to the
amount of 80 per cent. of their capital,
thew shall be permitted to issue bank
notes in addition to the 50 per cent. thus
provided. to the extent Of p per cent,
for which the banks assets shall be
liable.
He also recommends that the guaranty
of payment by the government be ex-
tended to all circulating notes of the
banks, whether issued against deposited
securities or against assets. To secure
the government against loss, If any, a
tax of 2 per cent. should be levied on un-
secured circulation, to create n safety
fund, TO be invested by the Comptroller
I'm United States bonds. In addition. the
government should be further protected,
the Secretary says, by having a first lien
upon all assets, in case OF failure Of the
Issuing bank.
1t is further recommended that all
notes he redeemed in the city OF New
York. and at other sub-treasuries, at the
expense of the banks and that the issue
OF national bank-notes be restricted TO
the denomination Of $40 and upwards.