Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1897-12-10

6OAu 0AA 4to VNV0VS1ANAAlS VuAAOhSy "AS~ S~A~A
obligations, while Its receipts are not re.
In every kind Of money but gold, and the
with certainty get gold IL by borrowing.
1t can get it In no other way when 1t most
needs 1t. The government without any
fixed gold revenue u pledged to maintain
gold redemption, which 1t has steadily and
faithfully done, and which under the
authority now given 1t will continue
to do.
Demands Constant Rsplsnishmsnt.
The law which requires the govern
Ment, after having redeemed its United
States notes, to pay them, out again as
current funds demands . constant re-
Punishment OF the gold reserve. This Is
especially 30 in times of buslness panic
and when tho revenues are insufficient
to meet the expenses Of tho government.
At such times tho government has no
other way to supply its deficit and main
taAin redemption but through the increase
Of its bonded dobt as during tho admins
'tration OF my predecessor when $9d2, 3d..
400 Of 1 ! per cent bonds were issued AMI
sold and the proceeds used to pay tho OK
ponse Of the government In excess of tho
ro> enues and sustain this gold reserve.
While it is true that the greater pat OF
the proceeds OF the 70 bonds we're W. d to
supply deficient re .enucs, u con 'ldas;Aole
portion WAS required to mainta II tho 5o.d
reserve.
Sh"u Il Have Authority 20 Sell ss.r'.
With our revenues equal to our pen
SOS, thero would bo no del it requiring
the issuance of bonds But If the god
reserve falls below slOO,O0O,WO how VAL
it b. rep .cuished except by selling more
bonds? Is there amy other way practica-
bic under existing law? Tho serious
question then is, shall we continue the
policy that has been pursued in the past;
tn It Is. when the gold reserve reaches the
pc4..v If danger, issue more binds and
SUPP ~ the needed gold, Or shall we l.ro-
vide other means TO ple.cnt these re-
curing drains upon the gold reserve? Ii
no further legisl .tion Is had and thu pol
icy of selling bonds is to BIZ continued,
then congress should give the secr> t,,ry "f
the treasury authority to sell bonds Ut
long or short periods, bearing less rate
OF interest than is now authorized by law.
No Reissue Of Notes Except For Gold.
earnest recommend, as soon as the
receipts of the government are quite suf-
fcient to pay all the expenses OF the gov
ernment, that when any of the United
State, notes are rcsented for.redemption
in gold and are redeemed in gold. such
notes shall be kept and set apart, and
on.y paid out in exchange for gold. This
is an obvious duty. If the holder of
United States notes prefers the gold and
gets it from the government, he should
not receive back from the government
United States note without pay .ng gold
in exchange for it. The reason for this
is made all the more apparent when the
government issues an interest bearing
debt to provide gold for the redemption
of United States nOtes-a nOn-intcrest
Gearing debt. Surely it should not pay
them out again, except on demand for
gold If they arc put out in any other
way they may return again to be followed
by another bond Issue to redeem them
another interest bearing debt to redeem q
non-interest bearing debt.
Government the Only Sufferer.
In my view it is of the utmost impor-
lieved from the burden of providing all
UllC HOlu LUZ OACIhASOS bAN IA
port. This responsibility is alone borne
by the government without any OF the
usual and necessary banking powers to
help itself. The banks do not feel the
strain of gold redemption. The whole
strain rests upon the government and tho
size of tho gold reserve in the treasury has
come to be, with or without reason, the
signal of danger or Of security. This
ought to be stopped.
Ii we are to have an era OF prosperity In
the country with sufficient receipts for
the expenses Of the government we may
feel no immediate embarrassment from
our present currency; but the danger still
exists and will be over present menacing
us SO long Us the existing system con-
tinues. And besides, it is in times of ade.
quate revenues and business tranquility
that the government should prepare for
tho worst We cannot avoid without
serious consequences the wise considera-
ton aud prompt solution of this question
Calls Attention to Mr.. Cages Plan.
The secretary of the treasury has out
lined plan in great detail for the purpose
OF removing the threatened recurrence Of
q depleted gold reserve and save us from
future embarrassment ON that account.
10 this plan invite your careful consid-
Grafton.
concur with the secretary Of the treas
ury In his recOmn. end .ItiOn that national
banks be allowed to ISSUE notes to the
face value of the bonds which they have
deposited for circulation and that tax on
notes secured by deposit of
such bonds be reduced to one-half of
per cent per annum. l also join him
in recommending that authority be
given for tho establishment of national
banks with minimum capital of 325 900.
This will enable the smaller villages and
regions of the country to be
supplied with currency to niece their
needs.
recommend that the issue of national
bank notes be restricted to the denomina-
ton of $1U and upwards. If the sugges-
lions have herein made shall have the
approval of congress then would recon-.
mend that national banks be required to
redeem the notes in gold.
THE CUBAN QUESTION.
Il II the Most Important OF Any Per.
taining to Foro,En Relations.
The most important problem with which
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